US oil prices are surging overnight as US oil demand is at record highs, but US oil production falters what we are seeing as bear traders capitulate in a big way as cold temperatures come across the United States and an energy crisis in Europe seems to get worse. There are still upside risks due to the Russia Ukraine situation, keeping traders on edge. Still, more than anything, the reason why this market is taking off is that US supplies can’t seem to keep up with demand Biden administration policies is less thus more dependent on imports.
Saudi Arabia has taken advantage of the US, at least to a story in the Wall Street Journal. They report that Saudi Aramco (SE:2222) is going to offer a $50 billion secondary offering which would be the biggest stock offering in the history of the world.
At least somebody has been in fitting from these higher oil prices it should be the United States we need to back off US oil and gas industry and work with them the Biden administration needs to realize it made some major mistakes, and if we they want to save the economy and cool down inflation they have to send a message the fossil fuel are going to be here to stay and that they’re going to embrace the industry work with the industry and not hamper the industry that’s going to be difficult when Democratic Senators do not seem to understand anything about how the energy market works.
Read this letter United States Senator Elizabeth Warren (D-Mass.) joined Senators Jack Reed (D-R.I.), Angus King (I-Maine), and seven others in a letter to Secretary of Energy Jennifer Granholm, urging her and the Biden administration to consider limiting liquefied natural gas (LNG) exports to reduce prices for American families.
As LNG exports hit record-high levels, American consumers are footing the bill and facing an energy crisis this winter.
Senator Warren said:
“We can’t let energy companies squeeze American consumers with unaffordable energy bills at home while reaping record profits through LNG exports abroad. The Department of Energy needs to reevaluate its LNG export policies and figure out how to keep prices low for American consumers. Until the Department has a plan, it should consider halting permit approvals of LNG export facilities.”
Nearly half of all homes in the United States use natural gas for heating, and this year energy costs for home heating are estimated to rise by 30%. Despite these rising costs for American consumers, energy companies export more natural gas while decreasing supply.
In December, the United States became the world’s leading LNG exporter. Senator Warren and her colleagues are calling on the Biden administration to evaluate its LNG export policy and halt permit approvals of US LNG exports until the consequences to consumers are understood.
As consumers face a winter energy price and inflation crisis fueled by corporate profiteering, Senator Warren has fought to protect American consumers from exploitation. In November, Senator Warren called out the largest energy companies for exporting record amounts of natural gas while jacking up prices for consumers and rewarding executives. In December, Senator Warren and her colleagues called on the Department of Health and Human Services to strengthen the LIHEAP program to help families afford rising energy prices.
This letter of course fails to acknowledge that the green new deal senators have been trained to kill US natural gas production they’ve been trying to kill pipelines they have been trying to kill natural gas usage now they complain when we export natural gas.
The truth is that there is excess natural gas in this country and if regulations weren’t as strict as they are we could build more pipelines and move natural gas to other parts of this country to keep prices low yet you have an anti-natural gas lobby in Washington you also have an insert in cities where New York is banning new natural gas buildings and you also have it in California where whole cities are blocking natural gas buildings.
Natural gas is the bridge fuel that can help the world reduce greenhouse gas emissions we should embrace natural gas not demonize it but more importantly after you demonize natural gas don’t complain when prices go high or if some other country wants our supply.