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https://www.mediamatters.org/climate-deniers/right-wing-media-used-opec-oil-cuts-blame-biden-domestic-gas-price-volatility

mma 10 22

On October 5, OPEC [saudi?] and non-OPEC allies decided to impose cuts on oil production despite the fact that they were cautioned against doing so by the United States. The cartel will cut 2 million barrels, a move that could further elevate gas prices in the lead-up to midterm elections. To help ease the impact of the cuts, President Joe Biden, during remarks on gas prices and energy security delivered on October 19, announced a 3 point plan to address rising costs and global oil supplies, including the release of 15 million barrels of oilfrom the Strategic Petroleum Reserve. Biden also called for oil companies to increase production instead of buying back stocks and paying dividends to their shareholders, and warned these companies not to gouge gas prices as the cost of oil comes down. 

Fox has painted Biden as chiefly responsible for rising gas prices in a ploy to hurt Democratic candidates in the final weeks of midterm campaigning. Other right-wing media outlets and personalities have followed suit, and criticism has been magnified by a claim made on October 12 by Saudi Arabia’s ministry of foreign affairs saying that Biden asked OPEC to postpone the oil cuts for a month.

In response, right-wing media is using the same playbook and the same series of debunked arguments and disinformationfrom earlier in the year when Russia first invaded Ukraine and global energy security became a concern.

Right-wing media is once again misleading voters about how the global energy market works to push a pro-fossil fuel agenda.

Conservative media outlets are pushing the idea that drastically increasing oil production in the U.S. is a quick and common-sense solution to the problem of high gas prices because it would allow the U.S. to be “energy independent," a term experts have pointed out is widely misunderstood. The U.S. has imported oil for decades and will continue to do so for economic reasons. Importing and exporting some energy is necessary to meet the needs of the market. In that sense, we will probably never be truly energy independent in a fossil fuel economy. If we understand energy independence to mean the U.S. exports more energy than we import, that is still the case. In fact, by this standard, U.S. energy independence reached its peak in 2021 when Biden was president. 

Right-wing media push pro-industry talking points claiming that U.S. oil producers are hindered from drilling, blame elevated gas prices solely on decisions made by Biden

Gas prices have been elevated by increased demand following the easing of pandemic restriction and by oil supply disruptions created by Russia’s war on Ukraine. Prices dipped slightly toward the end of the summer, only to rise in late September, but are currently on the downtrend once again. Aside from OPEC’s recent decision to cut supply, a refinery fire in the Midwest and facility maintenance on the West Coast have reduced inventories to record lows, and a looming European ban on Russian oil, which will take effect in December, is also contributing to price increases. 

The U.S. oil industry is not being hampered by the Biden administration, as it has claimed to evade blame.In March, CEOs of major oil producers stated that they were not planning on investing in any new drilling due to pressure from investors for bigger shareholder returns. To be sure, the current climate of increased demand and global supply disruptions caused by Russia’s war on Ukraine has increased the price of oil, lavishing these companies with record profits while U.S. and global consumers have been hurt by high energy costs.In fact, U.S. oil producers are sitting on 9,000 unused drilling leases for public lands, and while right-wing media push the industry claim that Biden is suppressing domestic production, U.S. oil production on public lands is near all-time highs and is on track for record output in 2023.

Right-wing media attack Biden for Strategic Petroleum Reserve use, foreign oil imports, and efforts to stabilize global oil supply

To help manage global oil prices, Biden began releasing oil from the Strategic Petroleum Reserves in March. The latest release of 15 million barrels, announced on October 19, is the last of those planned releases. Right-wing media have suggested that drawing down the reserve makes the U.S. vulnerable to other disasters where the reserve would be needed to shore up supplies while doing nothing to address gas prices. As it stands, the reserves are still more than half full. The move has modestly lowered gas prices, however, experts agree it is not a long-term solution. Biden is also considering easing sanctions on Venezuela for Chevron to resume pumping oil there, allowing the country to export to U.S. and European markets.

Right-wing media has disingenuously argued that getting oil from Venezuela would be more environmentally damaging than producing more oil in the U.S., thus, increasing production domestically would be the more ethical choice. This is a common fossil fuel industry talking point that bad actors use to encourage long-term investments in expanding domestic production, meant to delay an economy-wide transition to renewable energy and ensure that we are reliant on fossil fuels for decades to come. This would be the worst possible outcome for the environment. The same individuals who praise the U.S. for having such “clean” energy production compared to other countries are also fighting against regulations implemented by the Biden administration that are meant toprotect vulnerable communities and hold the industry accountable for the extensive damage it will inevitably cause to ecosystems, the climate, and public health.

Right-wing media claims Biden’s negotiations to keep OPEC+ from cutting oil supply are politically motivated and even impeachable

Despite negotiations with Biden to keep oil supplies stable, OPEC+ announced on October 5 that it would cut its oil supply by 2 million barrels a day in an attempt to push the price to $100 a barrel. The White House has called the move shortsighted, while analysts have noted that it benefits Russia and could push the global economy closer to recession. Some early right-wing reactions suggested that Biden — who in response to OPEC’s decision signaled thepossibility of more releases from the Strategic Petroleum Reserve — only cared about gas prices rising because of the looming midterms elections.

On October 12, in a rare statement to U.S. media, the Saudi government echoed these sentiments by claiming that Biden asked them to delay the cuts by one month – creating a feedback loop between right-wing media and the Saudi royal family. The White House has disputed these claims.



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fOX Business Network Contributor

Phil Flynn joined FOX Business Network (FBN) in 2008 as a contributor and currently provides market analysis specializing in the energy sector across the network and FOXBusiness.com. He is based in Chicago where he frequently reports live from FBN’s Chicago bureau at the Chicago Mercantile Exchange (CME).

In addition to his role at FBN, Flynn is also a senior account executive/market analyst at the Price Futures Group. He also serves as the author of the The Phil Flynn Energy Report on a daily basis.With a career spanning more than three decades, Flynn is one of the world’s leading energy market analysts, providing individual investors, professional traders, and institutions with up-to-the-minute investment and risk management insight into global petroleum, gasoline, and energy markets. He has also contributed energy market commentary and writing across various industry publications and books, including Futures Magazine, International Business Times, WSJ, Washing Post, Inside Futures, 312 Energy, Enercast, among many others.

A lifelong resident of Illinois, Flynn attended Daley College in Chicago before beginning his career on thetrading floor of the Chicago Mercantile Exchange which eventually led him and his team to The PRICE Futures Group.


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