Oil

The US had been producing 13 million barrels of oil per day before the pandemic and then it dropped to 11.5 million where it remains to day. The price of oil increased from $42 to $72 per barrel so the oil companies are making comfortable profits. Gas prices have increased by a dollar and this is attributed to the higher price of oil. Oil companies see the administration as committed to wind and solar and are concerned about new drilling and this effects future supply. As cognitive dissonance goes, this is a classic. President Biden’s explicit policy goal is to reduce U.S. oil and gas production, limiting the global supply of fossil fuels in the name of fighting climate change. Yet his Administration is now imploring the OPEC oil cartel to pump more oil so U.S. gasoline prices don’t rise more than they already have on Mr. Biden’s watch. Burning oil creates CO2 whether the oil comes from the Middle East or North Dakota. While the US companies are losing out on the increase production, Russia is making out like a bandit. MOSCOW (Bloomberg) --Russia increased its oil production in March amid a more generous OPEC+ quota, even as rising coronavirus cases threaten oil demand in the short-term.