President Joe Biden has blamed the oil industry for failing to produce enough oil to alleviate the war’s oil crisis, While gas prices have risen by approximately a dollar in the run-up to the Ukrainian war and by 70 cents since the invasion.
Oil drillers claim they are working to fill the current hole in the oil market, but Democratic policies are preventing them from doing so.
Leslie Samuelrich, president of investment advisory firm Green Century Capital Management, said in April that “getting lenders to choke off money to fossil fuel businesses is the next critical action for the sector to confront the material concerns that the coal, oil, and gas industry faces.”
Samuelrich’s prediction has come true, significantly decreasing the feasibility of future oil projects on the 9,000 private land leases that have been reported.
Biden in 2019: “I’ve argued against any more oil drilling or gas drilling on federal lands…I would not allow any more.”
“We should, in fact, be looking at what exists now” pic.twitter.com/5grZi0Yxxx
— RNC Research (@RNCResearch) March 9, 2022
“Ten years ago, the cost of capital for developing oil and gas projects was roughly the same as for renewable projects, decreasing continuously between 8% and 10%. “But that’s no longer the case,” Bloomberg reported in November. For long-cycle developments, the cost of capital is now said to be 20%.
Biden’s attack on private fundraising is only one of many fronts he’s taking. Biden revised global bank funding rules in August, making it harder for drillers to secure investors.
The program aims to boost renewable energy investment above fossil fuel investment, defunding oil production significantly.
Oil drillers believe that “capital flight from the fossil-fuel industry in recent years has left U.S. oil patches without enough fracking equipment to bring a ton of new wells online, and that a resurgence of go-go drilling would deplete companies’ most valuable drilling locations,” according to the Wall Street Journal.
Biden also has a third strategy for sabotaging the US energy industry. Sarah Bloom Raskin has been nominated to be a member of the Federal Reserve Board of Governors by Vice President Joe Biden. Raskin has already stated his desire to raise the cost of finance for fossil fuels.