Neither “energy dominance” nor “energy independence” were long-term goals for the United States.Joe Biden, like previous presidents, finds himself in the position of first pleading with OPEC members and then expressing resentment over their decisions regarding oil production.However, shifts are in jeopardy due to a new, more aggressive American oil policy.
On October 5, the OPEC+ group of major oil exporters decided to reduce its production target by two million barrels per day, or approximately 900,000 bpd, in Vienna.The previous month’s confab saw a reduction of 100,000 bpd, which followed months of steady growth as consumption recovered from the pandemic.
The gathering is stressed over interest and the world economy, given high expansion, loan cost rises and the monetary stoppage in China.Just prior to the meeting, oil prices had plummeted from nearly $124 per barrel in June to $84 per barrel.
However, the United States actively opposed cuts, hoping to control inflation and prices ahead of the crucial midterm elections on November 8.It argued that the market was still tight and that the decision could have been delayed for a month to accommodate the December 5 impact of the European ban on Russian oil imports.The pleas made by the Biden administration were unsuccessful.
As a result of the “shale revolution” in the United States, which began in 2010 and opened up previously untapped billions of barrels of oil and trillions of cubic feet of gas, it was widely believed that the United States would no longer need to pay attention to the Gulf.Washington thought it could reduce its military and diplomatic presence there in a “pivot to Asia” as a result.
