The United States is losing its influence globally and is forced to abandon its desire for global energy dominance. This opinion was expressed by journalists Stefan Beutelsbacher, Nando Sommerfeldt and Holger Zschaepitz in an article for Die Welt.
The article says that as the global economy recovers from the coronavirus restrictions, oil prices are also rising. If a year and a half ago, a barrel of American WTI fuel suddenly began to cost minus $ 37, now its price is about $ 70. This is more than in the year preceding the pandemic, the authors note.
However, this brings problems for the United States: the price is now too high, the publication says.
“The U.S. urgently needs falling quotes. Because now it is becoming clear that Washington is losing influence. The largest economy on Earth is losing power over oil,” the German newspaper writes.
According to the authors, this trend is most clearly demonstrated by the recent step of the American leadership: it turned to OPEC and Russia for help. Washington called on the cartel that determines oil prices to increase production. President Joe Biden fears that the high cost of black gold slows down the recovery of the American economy and leads to an increase in inflation.
“America, a country that only recently dreamed of “global energy dominance,” as Biden’s predecessor Donald Trump put it, is losing influence on commodity markets. Because she can no longer intervene in a situation where the supply is limited, and prices are high. Until recently, things were different,” Die Welt writes.
Thanks to the shale revolution with billion-dollar investments and measures introduced by Trump to open more fields, the country has become the oil market leader in recent years, the authors of the article explain. The Americans could increase or reduce the daily volume of production, depending on the situation. Thus, Washington did not need OPEC.
“Trump was betting on coal, oil, and gas, while Biden wants to generate electricity from water, wind, and solar. As a result, it is becoming increasingly difficult for America to produce enough oil to meet demand,” the article says.
And this is just one of the examples the authors of the article note. The situation with the gas trade also looks bad. After years of sanctions and threats against Russia, Biden recently abandoned countering the “Nord stream-2.” The construction of the gas pipeline is almost completed, and the idea that the United States will import gas to Europe on a huge scale on tankers has died, a German newspaper writes. The publication says that Americans are already feeling the consequences: gasoline costs about a dollar more expensive today than a year ago.
“Fossil fuels remain the elixir of our country’s life, and they will remain the main source of energy for many decades to come,” said Mark J. Perry, an economist at the American Enterprise Institute, a Washington-based think tank.
In his opinion, Biden’s policy aimed at complicating oil and gas production is a “denial of reality” and exposes the U.S. economy to a huge risk.