Biden’s Bizarre Oil Diplomacy

[itsnotoutthere]

President Biden is scrambling to contain soaring oil prices, which closed at more than $123 a barrel on Monday. It speaks volumes about this Administration that it’s seeking help from Vladimir Putin’s client in Venezuela and our estranged Saudi allies rather than U.S. shale producers or our Canadian friends.

Press Secretary Jen Psaki on Monday acknowledged reports that the Administration had sent emissaries to Caracas to discuss “energy security.” The Administration may ease sanctions on Venezuelan oil to replace lost Russian supply, which buyers are shunning due to sanctions risk.

The Trump Administration in early 2019 sanctioned Venezuela’s state oil company PDVSA to squeeze Nicolas Maduro’s brutal regime, which has impoverished the country, persecuted political opponents and sent millions of refugees across the region.

But Venezuela continues to pump about 800,000 barrels a day with help from Russia and Iran. The Venezuelan has returned the favor by supporting Mr. Putin’s war on Ukraine and denouncing the West’s “economic war” against the Russian people.

Easing Venezuelan sanctions would be a strategic blunder that provides a financial lifeline to Mr. Maduro while doing little to ease the oil price spike. Venezuelan oil companies say they can increase production by several hundred thousand barrels a day in eight months. The war in Ukraine may be over by then.

Shale producers can increase production twice as fast as Venezuelan oil companies, and the profits would go to U.S. workers and shareholders rather than another dictatorship.

https://www.nmoga.org/bidens_bizarre_oil_diplomacy

Edited July 5, 2022 by itsnotoutthere

[+joc]

43 minutes ago, itsnotoutthere said:

President Biden is scrambling to contain soaring oil prices, which closed at more than $123 a barrel on Monday. It speaks volumes about this Administration that it’s seeking help from Vladimir Putin’s client in Venezuela and our estranged Saudi allies rather than U.S. shale producers or our Canadian friends.

Press Secretary Jen Psaki on Monday acknowledged reports that the Administration had sent emissaries to Caracas to discuss “energy security.” The Administration may ease sanctions on Venezuelan oil to replace lost Russian supply, which buyers are shunning due to sanctions risk.

The Trump Administration in early 2019 sanctioned Venezuela’s state oil company PDVSA to squeeze Nicolas Maduro’s brutal regime, which has impoverished the country, persecuted political opponents and sent millions of refugees across the region.

But Venezuela continues to pump about 800,000 barrels a day with help from Russia and Iran. The Venezuelan has returned the favor by supporting Mr. Putin’s war on Ukraine and denouncing the West’s “economic war” against the Russian people.

Easing Venezuelan sanctions would be a strategic blunder that provides a financial lifeline to Mr. Maduro while doing little to ease the oil price spike. Venezuelan oil companies say they can increase production by several hundred thousand barrels a day in eight months. The war in Ukraine may be over by then.

Shale producers can increase production twice as fast as Venezuelan oil companies, and the profits would go to U.S. workers and shareholders rather than another dictatorship.

https://www.nmoga.org/bidens_bizarre_oil_diplomacy

Want to hear a good joke?  So, Biden walks into a bar....

 

[L.A.T.1961]

Also -

Interesting that the US is in talks with China to look at the role back of trade tariffs. 

A big change in US strategy if true and a sign of how desperate the Biden administration is getting over the inflation problem as elections loom.

https://edition.cnn.com/2022/07/05/economy/us-china-tariffs-biden-intl-hnk/index.html

[Doug1066]

FYI:  There are over 9000 drilling permits approved, but not being drilled.

Doug

[Doug1066]

3 hours ago, L.A.T.1961 said:

Also -

Interesting that the US is in talks with China to look at the role back of trade tariffs. 

A big change in US strategy if true and a sign of how desperate the Biden administration is getting over the inflation problem as elections loom.

https://edition.cnn.com/2022/07/05/economy/us-china-tariffs-biden-intl-hnk/index.html

Those tariffs shouldn't have been started in the first place.

Doug

[L.A.T.1961]

1 minute ago, Doug1066 said:

Those tariffs shouldn't have been started in the first place.

Doug

I think China needed the brakes putting on their ambitions, so the motive for tariffs might have been unusual but the outcome has put the situation in the spotlight. 

 

[bmk1245]

1 minute ago, Doug1066 said:

Those tariffs shouldn't have been started in the first place.

Doug

Why? I'm sick of "Made in China" label on everything...

Though, bought desoldering station "Made in Taiwan", bit more expensive, but worth it)

[Guest Xetan]

22 minutes ago, Doug1066 said:

Those tariffs shouldn't have been started in the first place.

Doug

Why not?

[Doug1066]

1 minute ago, Xetan said:

Why not?

Witness their current effect on inflation.

Doug

[Guest Xetan]

Just now, Doug1066 said:

Witness their current effect on inflation.

Doug

lol

The two primary causes for the current inflation are an import-based goods economy and corporate greed. Prices aren't based on the costs of production and transportation anymore, they're based on "What can we get away with?" No amount of tariff reduction is going to slow this crisis down, because it's being caused primarily by *******s who just want to line their pockets, not material pressures.

Long term fixes involve earnings caps, wealth caps, and local goods production, but the people and the politicians won't hear it.

[bmk1245]

1 minute ago, Doug1066 said:

Witness their current effect on inflation.

Doug

By what % points tarriffs on China's goods affect inflation in US?

[Doug1066]

44 minutes ago, bmk1245 said:

By what % points tarriffs on China's goods affect inflation in US?

Americans pay 92% of the costs of the tariffs in the form of higher prices on imported goods.

The base price is dependent on the rpoduct.

Doug

[bmk1245]

9 minutes ago, Doug1066 said:

Americans pay 92% of the costs of the tariffs in the form of higher prices on imported goods.

The base price is dependent on the rpoduct.

Doug

Doug, please, you are scientist, for christs sake...

So, how much of that 92% translates into inflation? 10%, 20%, more? Jeez, I manage to find new skyeagle))) No offence, Doug, just friendly pun)

[Duke Wellington]

9 hours ago, itsnotoutthere said:

President Biden is scrambling to contain soaring oil prices, which closed at more than $123 a barrel on Monday. It speaks volumes about this Administration that it’s seeking help from Vladimir Putin’s client in Venezuela and our estranged Saudi allies rather than U.S. shale producers or our Canadian friends.

Press Secretary Jen Psaki on Monday acknowledged reports that the Administration had sent emissaries to Caracas to discuss “energy security.” The Administration may ease sanctions on Venezuelan oil to replace lost Russian supply, which buyers are shunning due to sanctions risk.

The Trump Administration in early 2019 sanctioned Venezuela’s state oil company PDVSA to squeeze Nicolas Maduro’s brutal regime, which has impoverished the country, persecuted political opponents and sent millions of refugees across the region.

But Venezuela continues to pump about 800,000 barrels a day with help from Russia and Iran. The Venezuelan has returned the favor by supporting Mr. Putin’s war on Ukraine and denouncing the West’s “economic war” against the Russian people.

Easing Venezuelan sanctions would be a strategic blunder that provides a financial lifeline to Mr. Maduro while doing little to ease the oil price spike. Venezuelan oil companies say they can increase production by several hundred thousand barrels a day in eight months. The war in Ukraine may be over by then.

Shale producers can increase production twice as fast as Venezuelan oil companies, and the profits would go to U.S. workers and shareholders rather than another dictatorship.

https://www.nmoga.org/bidens_bizarre_oil_diplomacy

Lets go Brandon!

[Duke Wellington]

1 hour ago, bmk1245 said:

Why? I'm sick of "Made in China" label on everything...

Though, bought desoldering station "Made in Taiwan", bit more expensive, but worth it)

Trade barriers on China are good, but removing them is one of the little options Biden has to reduce inflation.

He could go for the big one and end the sanctions on Russia.

[Doug1066]

13 minutes ago, bmk1245 said:

Doug, please, you are scientist, for christs sake...

So, how much of that 92% translates into inflation? 10%, 20%, more? Jeez, I manage to find new skyeagle))) No offence, Doug, just friendly pun)

I seem to have a lot in common with Microsoft:  technically the right answer, but completely useless.  I'll try to find a little more detail.

Doug

[bmk1245]

3 minutes ago, Cookie Monster said:

[...]

He could go for the big one and end the sanctions on Russia.

US trade with russia ain't in comparison with trade with China, or EU, please...

[bmk1245]

3 minutes ago, Doug1066 said:

I seem to have a lot in common with Microsoft:  technically the right answer, but completely useless.  I'll try to find a little more detail.

Doug

Ok, no rush.

[Doug1066]

2 hours ago, bmk1245 said:

Ok, no rush.

As of January 2020, the average tariff on products imported from China was 16.8% of the purchase price.  Of this, American consumers paid 92%, or 15.46% of the purchase price.

[bmk1245]

11 minutes ago, Doug1066 said:

As of January 2020, the average tariff on products imported from China was 16.8% of the purchase price.  Of this, American consumers paid 92%, or 15.46% of the purchase price.

So 85% of inflation isn't caused by tariffs on China?)))  Joking.

Doug, say inflation is 1 arbitrary unit. What part of that 1 arbitrary unit is caused by tariffs on goods imported from China? 0.1? 0.2? 0.5? More to that, what part of that 1 arbitrary unit is caused by increased tariffs by D.Trump on goods imported from China?

Quite simple question.

[Doug1066]

5 minutes ago, bmk1245 said:

So 85% of inflation isn't caused by tariffs on China?)))  Joking.

Doug, say inflation is 1 arbitrary unit. What part of that 1 arbitrary unit is caused by tariffs on goods imported from China? 0.1? 0.2? 0.5? More to that, what part of that 1 arbitrary unit is caused by increased tariffs by D.Trump on goods imported from China?

Quite simple question.

I'd have to know a whole lot more about foreign trade than I do to answer that one.

Doug

[bmk1245]

6 minutes ago, Doug1066 said:

I'd have to know a whole lot more about foreign trade than I do to answer that one.

Doug

Fair enough.

Until then, "Witness their current effect on inflation." is just a baseless statement, IMHO.

[Doug1066]

7 minutes ago, bmk1245 said:

Fair enough.

Until then, "Witness their current effect on inflation." is just a baseless statement, IMHO.

Because I can't quantify it doesn't mean it doesn't exist.

Doug

[bmk1245]

13 minutes ago, Doug1066 said:

Because I can't quantify it doesn't mean it doesn't exist.

Doug

No doubt, if you can't quantify it, doesn't mean it doesn't exist, for sure. Thing is, you presented aforementiomed statement as a major issue. We can argue 'bout context 'twas said, nevertheless, whats said was said.

PS sorry for using so many commas, guess, bad habbit))) Language specific... 

[el midgetron]

I suspect one facet of the aid to Ukraine is just a giant money laundering scheme,,

Anyone remember the pallets of cash we shipped to Iraq? Now we are sending billions to a country where the Biden’s were collecting millions in cash for selling US influence. 

Beginning in the very earliest days of the war in Iraq, the New York Federal Reserve shipped billions of dollars in physical cash to Baghdad to pay for the reopening of the government and restoration of basic services. 

The money was packed onto pallets inside a heavily guarded New York Federal Reserve compound in East Rutherford, New Jersey, trucked to Andrews Air Force Base outside of Washington, and flown by military aircraft to Baghdad International Airport. 

By one account, the New York Fed shipped about $40 billion in cash between 2003 and 2008. In just the first two years, the shipments included more than 281 million individual bills weighing a total of 363 tons. But soon after the money arrived in the chaos of war-torn Baghdad, the paper trail documenting who controlled it all began to go cold. 

https://www.cnbc.com/id/45031100