Biden's energy moves strengthen Russia, US rivals, undermine national security
‘No question’ Biden administration is ‘trying to stifle’ oil, gas production: Former RNC chair
Former RNC Chair Haley Barbour discusses the potential impact of new restrictions imposed by the Biden administration on the U.S. energy industry.
President Biden’s executive orders that put the U.S. on a course to transition away from fossil fuels are a boon for U.S. competitors Russia, Saudi Arabia and other adversaries and pose a threat to national security.
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Biden on Wednesday signed an executive order that temporarily bans the issuance of new permits and leases for drilling and fracking on federal lands. He also ordered federal agencies to eliminate fossil fuel subsidies.
The actions followed other executive orders that called on the U.S. to rejoin the 2016 Paris climate agreement and to temporarily halt drilling in the Arctic, among other things.
“Anything that blunts U.S. production growth and potentially blunts the ability of the U.S. to pursue a coercive sanctions regime tied to American energy dominance” would benefit Russia, said Helima Croft, managing director and global head of commodity strategy at RBC Capital Markets.
She noted the orders, while telegraphed by Biden on the campaign trail, may have taken people by surprise due to the speed at which they were implemented. Biden has promised to "transition" the U.S. away from oil.
BIDEN TO BAN NEW PERMITS FOR DRILLING ON FEDERAL LANDS, WATERS FOR ONE YEAR
Deregulation implemented by the Trump administration helped the U.S. in 2017 become a net exporter of natural gas for the first time since the 1950s. In 2019, the U.S. became a net exporter of energy.
Being energy independent allowed the Trump administration to levy sanctions against the Russian oil company Rosneft for its support of the Maduro regime in Venezuela.
BIDEN CLIMATE CHANGE ORDER TO TELL FEDERAL AGENCIES TO ELIMINATE FOSSIL FUEL SUBSIDIES
Additionally, Russia’s stronghold on liquefied natural gas exports to the European market was threatened as a strong U.S. presence gave those countries purchase optionality.
Other potential winners from Biden’s executive actions include the Gulf state producers like Saudi Arabia, United Arab Emirates and Kuwait, which produce the cheapest and cleanest oil. Just this month, the U.S. for the first time in 35 years did not import a single barrel of crude oil from Saudi Arabia.