President Joe Biden’s recent executive orders are aimed at accelerating a controversial transition away from fossil fuels and replacing them with so-called clean energy. The decision is excellent news for international competitors in the oil industry such as Russia and Saudi Arabia. The United States could soon become heavily dependent on these nations for energy, posing a huge danger to national security.
Biden’s executive order on drilling and fracking
Biden signed an executive order on Wednesday, Jan. 27, that temporarily bans the issuance of new permits and leases for drilling and fracking on federal lands. He also ordered agencies to eliminate fossil fuel subsidies, Fox News reported.
The actions signed Wednesday follow other executive orders directing the U.S. to rejoin the 2016 Paris climate agreement and to temporarily halt drilling in the Arctic, among other things.
With the recent decisions, the United States faces a new set of issues. In the first instance, the unemployment that will result with such an outright paralysis of the oil industry, precisely in the leading country in oil production, added to the countless companies that depend indirectly on the sector, is of great concern and could generate real social chaos.
In addition, there is also the unavoidable increase in fuel prices due to shortages and the obligation to consume more and more imported fuel.
Russia and Saudi Arabia
“Anything that slows U.S. production growth and potentially weakens the ability of the U.S. to pursue a coercive sanctions regime linked to U.S. energy dominance” would benefit Russia, Helima Croft, managing director and global head of commodities strategy at RBC Capital Markets told Fox News.
The dependence that will naturally be generated from some competing countries such as Russia and Saudi Arabia puts U.S. national security at extreme risk.
The president and CEO of the American Petroleum Institute, Mike Sommers, in line with the criticism sent by other sectors towards President Biden, said that the order amounts to a “policy of importing more oil” and undermines national security, Fox News reported.
The deregulation implemented by the Trump administration during his tenure allowed the United States in 2017 to become a net exporter of natural gas for the first time since the 1950s.
Keystone XL Pipeline
Biden, on his first day as president, as part of the measures implemented to move away from fossil fuels and destroy the achievements of former President Trump, canceled the Keystone XL Pipeline project, which, during the Trump administration, had agreed to hire Americans. Criticism from those who defend the industry and local development did not take long to arrive.
The United States has the raw material to supply itself with the necessary energy and sufficient capital to research and gradually develop alternative energies or systems. However, the new administration opted to provoke a total break, importing energy from countries that have much lower environmental standards, at a higher cost, and they are countries hostile to the United States, so it is suspected that they will try to make their dependence known.