It is time for the U.S. to increase its energy production because of Saudi Arabia's decision to ally with Russia.
Nuclear power can be used to help meet the nation's energy needs.
The U.S. foreign policy uses energy policy. All bets are off given that a former ally has joined with a current opponent. It is time to take away some of the power that the group of oil-rich countries has.
2 million barrels per day was set for the cuts by the organization. It appears that the decision was made to bolster oil prices, which had fallen to around $80 a barrel. Despite signs that the economy is slowing, oil has begun to climb back up.
Short-term environmental concerns aside, the Biden administration should offer price supports to the entire oil and gas industry in order to rapidly boost production in some areas where exploration and production have slowed.
Biden would get pilloried by environmental groups, progressives and even some middle-of-the-road Democrats, but short-run needs are paramount if the U.S. wants to maintain long-term control of both our energy security.
The U.S. could support domestic crude prices at $65 per barrel if a price floor was put in place. That is high enough to encourage existing efforts. It is low enough to help pull the rug out from under a former ally. We do this for all types of producers.
If the U.S. adds more oil and gas it will hurt the bottom lines of both Saudi Arabia and Russia, who are trying to ensure $100 per barrel oil to prop up their budgets.
Even though U.S. companies are guaranteed to earn more, prices could go back into the $20s.
In the 1980s, when the Saudis were the world's "swing producer" of oil, they set the global price by raising and lowering production.
When daily production reaches the old record of 12.3 million barrels per day, the US will return to being the top producer. Since the beginning of the year, the U.S. has been the largest producer of natural gas.
The U.S. can more effectively export surplus oil and natural gas to an energy-starved world by speeding up the build out of infrastructure.
If sanctions remain in place against Peter the Great, Europe can avoid future disruptions of supplies.
Beyond that, continuing an "all of the above" energy policy, which should include modern nuclear power plants, would go far in stabilizing global energy markets, ensure more than adequate supplies of power and energy here at home and, once and for all, cripple the oil-rich countries of the
The U.S. and Europe should place a cap on Russian oil prices to make up for the revenue it needs to sustain its invasion of Ukraine.
According to some foreign policy experts, the U.S. should stop selling military hardware to the Saudis and stop giving them U.S. intelligence in order to make the alliance worthless. From now on, that should be their problem.
Iran and Venezuela should be allowed to sell oil to the U.S.
What is the difference between doing business with Saudi Arabia and Russia and doing business with Venezuela and Iran? The enemy of my friend is known to us.
It might be time to turn the tables on nations with more limited revenue options.
Ron Insana is a senior advisor at the company.
All Rights Reserved © 2024
