Former Democratic presidential nominees Al Gore and John Kerry are surely weeping and wailing and gnashing their teeth at the news, but the sensible among us see this as great! From CNN:
By Matt Egan | Updated 5:00 PM EST | Tuesday, December 19, 2023
As the world grapples with the existential crisis of climate change, environmental activists want President Joe Biden to phase out the oil industry, and Republicans argue he’s already doing that. Meanwhile, the surprising reality is the United States is pumping oil at a blistering pace and is on track to produce more oil than any country has in history.
“The existential crisis of climate change”? So many reporters keep using that word; I do not think it means what they think it means. We may have some issues with which to deal with global warming climate change, but we’re not all going to die.
Remember: human beings are the most adaptable creatures on earth, and we live everywhere, from arctic wastelands to steaming jungles to bone dry deserts, and we have done so even prior to our modern, industrialized society.
The United States is set to produce a global record of 13.3 million barrels per day of crude and condensate during the fourth quarter of this year, according to a report published Tuesday by S&P Global Commodity Insights.
Last month, weekly US oil production hit 13.2 million barrels per day, according to the US Energy Information Administration. That’s just above the Donald Trump-era record of 13.1 million set in early 2020 just before the Covid-19 crisis sent output and prices crashing.
As the world’s largest oil producer, that means more American dollars stay in the United States rather than going to Saudi Arabia or Venezuela, and some money from foreign countries comes to the United States. This enriches American companies and American workers, and that ought to be seen as a good thing for the American people.
The US is exporting roughly the same amounts of crude oil, refined fuels and liquid natural gas as Saudi Arabia and Russia. With the Saudi and Russian collusion, on which we have previously reported, to reduce OPEC’s production to raise prices, American production has helped keep those prices down.
“It’s a reminder that the US is endowed with enormous oil reserves. Our industry should never be underestimated,” said Bob McNally, president of Rapidan Energy Group.
Record-shattering US production is helping to offset aggressive supply cuts meant to support high prices by OPEC+, mainly Saudi Arabia and Russia. Other non-OPEC oil producers including Canada and Brazil are also pumping more oil than ever before. (Brazil is set to join OPEC+ next year.)
Think about what this means. Russia’s economy is dependent upon oil and natural gas exports, and Vladimir Putin wanted to use western Europe’s dependence upon Russia oil and, especially, natural gas as a weapon against NATO countries which are supporting Ukraine with money and military equipment. Without Russian natural gas, a lot of western Europe countries, much of which are at latitudes higher than our lower 48-state border with Canada, the Europeans would have gotten awfully cold during the past two winters, but American production has prevented Russia from being able to effectively utilize their energy weapon.
The climate activists want us to cease oil production, thinking that that will somehow save the world, and perhaps we can eventually develop energy systems which can truly replace oil for energy production, but, right now, that day has not come. And the United States, with its oil, natural gas, and seriously underused coal reserves, has natural resources which can make Americans in general wealthier. The activists just don’t get it: doing what they want would make Americans poorer.
Then again, if liberals actually understood economics, they wouldn’t be liberals anymore.
