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| President Joe Biden's fist bump with Saudi Crown Prince Mohammed bin Salman , should have been a high five . Come back empty . |
AS GAS PRICES SPIKE UPWARDS . U.S. President Biden can't seem to come to grips with increasing domestic oil production . Instead he goes begging to the Saudis . (1)>>As a result, high gas prices could persist into the midterm elections, where they have historically had an acute influence on voter behavior. Perhaps the most infamous example of this was during the 1979 oil crisis, when following the Iranian revolution, oil production slumped, sending gas prices skyrocketing.(1.2)>>The president’s 24 hours in Jeddah were dominated by photos of his fist bump with the de facto leader of a kingdom Mr. Biden had labeled a pariah. Things went downhill from there.Biden greeted Saudi Crown Prince Mohammed bin Salman, who U.S. intelligence agencies believe ordered the killing in 2018 of (2)>>Saudi journalist Jamal Khashoggi, with a fist bump shortly after his arrival on the visit. Mr. Biden insisted that, in front of the entire U.S. and Saudi delegations, he had labeled the crown prince the killer of Jamal Khashoggi. (3)>>Saudi Minister of State Adel al-Jubeir was quick to say he didn’t recall hearing that. When Mr. Biden was asked if the foreign minister was telling the truth, he said no—implying that a key Saudi official was a liar. In short, the President walked away with no progress—not only on oil, but on peace in Yemen, confronting Iran and everything else.So much for rebuilding (4)>>U.S.-Saudi cooperation, which was Mr. Biden’s goal. This trip was worse than a missed opportunity. It damaged U.S. security interests in the Middle East by highlighting to the world that neither Saudi Arabia nor other Gulf states trust the U.S. enough to make any sacrifices to renew badly frayed relations. In a speech to Arab leaders, the president proclaimed: “We will not walk away and leave a vacuum to be filled by China, Russia or Iran.”Nobody is going to be angry, but if (5)>>Biden gets snubbed or humiliated in any way, the US starts to look weak. The Saudis had been refusing to accept calls from Biden. That has never happened before. If KSA starts pivoting toward China, that starts to look like the US global role is in decline.If Russian fossil fuels are phased out of Europe, the GCC is going to be part of Plan B. If they start showing a lack of enthusiasm, the US role as fixer gets damaged.The last time the US was on the outs with the Saudis, the US experienced stagflation partially due to increased energy costs.If Biden convinces the Saudis to open the floodgates on crude exports, it could help reduce energy prices and take a bite out of inflation in the US, which remains a top political threat to his Democrats in November. Most likely the visit to Saudi Arabia was contingent on the announcement of the production increase. Biden could not and should not be willing to go to Saudi Arabia prior to that as it would appear that he was going hat-in-hand to beg for oil, which even if successful would have bad optics. And if said visit failed, the optics would be terrible; you can imagine Trump's speech about how he would have struck a "super-great" deal. (6)>> So if things go sideways, Biden starts looking like Jimmy Carter. Which will be a disaster for Dems. It just seems like a risky move on Biden's part. Unless he offers to bomb Iran, he doesn't have much that Saudis need. He's going there in a position of weakness. Unless he pulls an oily rabbit out of his hat, it will look like poor judgement. (7)>>As it stands, gas prices are at their highest level in seven years. The issue has become such an acute concern to Democrats that White House and top Democratic lawmakers are reportedly considering a federal gas tax holiday. Despite the obvious concerns, Biden has largely avoided blaming Saudi Arabia publicly, but in October, he alluded to his refusal to meet directly with Crown Prince Mohammed bin Salman as connected to the refusal to pump more oil.
NOTES AND COMMENTS: (1)>>As a result, high gas prices could persist into the midterm elections.However, when many Americans think about Saudi Arabia, one issue comes to mind — oil. Americans today are extremely frustrated with the high price of gasoline and want the president to bring them lower prices. Many likely believe that the trip is primarily about decreasing prices at the pump, despite the president’s emphasis on other issues. However, those people are likely to be disappointed. (1.2)>>The president’s 24 hours in Jeddah were dominated by photos of his fist bump with the de facto leader of a kingdom . Way back in February 2022 . President Joe Biden had a high-profile call with King Salman bin Abdulaziz al-Saud in an effort to partially restore a relationship with Saudi Arabia. According to the White House’s readout, during the call, Biden reaffirmed the willingness of the U.S. to aid Saudi in so-called defensive operations against the Houthis in Yemen, following recent attacks by the Houthis on the United Arab Emirates and Saudi Arabia. It also alludes to a discussion of the kingdom’s oil production, which has remained low since Saudi Arabia denied Biden’s request to increase it in August. “Both leaders further reiterated the United States’ and Saudi Arabia’s commitment to ensuring the stability of global energy supplies,” it reads.Biden tried to get OPEC to increase production a few months ago. They weren’t interested at the time because it was too risky. If Russian oil gets removed from the market that could change the calculation.This seems so obvious to me that I'm confused why it didn't happen earlier. It would bankrupt Russia to flood the market with Saudi oil. It would help Western consumers and economic growth. I understand progressives getting their underwear in a bunch over it, but Republicans? (2)>>Saudi journalist Jamal Khashoggi. Biden pinned the blame for the murder of the Saudi journalist Jamal Khashoggi on MBS, declassifying a U.S. intelligence report that tied the assassination directly to him.This isn't accurate, and I'm kinda bored with this widespread mischaracterisation of what happened.It says that he almost certainly approved an operation to capture or kill khashoggi. Any rational assessment is that is was a kidnap attempt gone wrong and then covered up in a moronic fashion by the extraction team. If anyone thinks a government assassinates someone by using long-winded tactics to lure then into their own embassy whilst their partner is waiting outside... Then I have a bridge to sell them.Khashoggi was an ex saudi intelligence agent and posed a national security threat (in their view). They have a long history of extracting targets under the guise of 'medical evacuations'. According to the audio 'conveniently' leaked by Turkey, there was a struggle and something went wrong. Given he was there to get a marriage permit and his fiancee was outside I'm guessing the team panicked and went about disposing of the body in a hamfisted way.Also worth noting that the family have formally forgiven the saudi government which issued a full public apology (with some significant blood money thrown in). Something that is basically unheard of and in their culture amounts to the matter being considered closed.E: also the suggestion that the Western world should by default refuse to engage with anyone non-western is also insanely stupid.(3)>>Saudi Minister of State Adel al-Jubeir was quick to say he didn’t recall hearing that. Saudi Minister of State for Foreign Affairs Adel al-Jubeir affirmed that Saudi Arabia and the US have strong historical and strategic relations in all fields. Driven by the need for market discipline and the advantage of keeping prices high, according to Saudi Minister of State for Foreign Affairs Adel al-Jubeir, the Saudis have no intention of breaking their OPEC+ arrangement with Russia, in which the parties agreed to slowly restore their monthly collective production at the rate of only 400,000 more barrels a day.Saudi Arabia can't boost its oil production any further in the medium term, Saudi Crown Prince Mohammed bin Salman said Friday at a summit attended by President Joe Biden, according to a report.He added: “With regards to the price of gasoline in the US, that’s really a function of the lack of refining capacity. The US has not built a refinery in more than 40 years and it has something to do with a regulatory environment that has now led to having many different blends of gasoline in different regions of the US, and that makes it complicated to supply gasoline into the American market.”Therefore, he added, “increasing crude oil supplies to the US is not going to alleviate the problem. But going back to the global situation, Saudi Arabia’s policy is to work within OPEC and OPEC+ to make sure the markets are adequately supplied and we have been doing that.(4)>>U.S.-Saudi cooperation, which was Mr. Biden’s goal. The aim, US President Joe Biden said, before setting off on a Middle East tour that ended in a summit with his Arab counterparts on 16 July in Saudi Arabia was to start a new and more promising chapter of America’s engagement there. In an opinion article in the Washington Post titled “Why I’m going to Saudi Arabia” on the eve of his four-day tour, Biden laid out the selling points of his ambitious diplomacy by emphasising that the tour “comes at a vital time for the region, and it will advance important American interests.”The US has called on oil-producing nations to pump more oil to counter soaring prices triggered by a pandemic supply squeeze and the Ukraine war. Saudi Arabia is the top exporter of oil to the US, accounting for 5% of petroleum imports and 6% of crude imports.Biden is attempting to improve relations with the kingdom, having previously pledged to make it a "pariah state" over the 2018 murder of the journalist Jamal Khashoggi by Saudi agents. Biden said he reiterated that assertion to Crown Prince Mohammed, who has denied personal responsibility for the killing.Whether Bidden has left his mark on the Middle East by rekindling regional alliances and reestablishing US supremacy, and whether his trip will succeed in curbing petrol prices back home before crucial mid-term elections, remains to be seen.(5)>>Biden gets snubbed or humiliated in any way, the US starts to look weak. He's the oldest President ever, he's so old that he literally has difficultly speaking. I've seen videos of him 20 years ago and the difference in how he talks is outstanding, we cannot trust 70+ year olds to run this country when they're so out of touch with the modern world and the younger generations. He's also promised a bunch of shit (student loans, etc.) and then simply not delivered them. He's like every other politician, he promises a load of stuff and then does the bare minimum. That's why people see him as weak. President Biden to run for re-election in 2024, the floodgates are open. Everywhere you turn, there is suddenly a Dem willing to declare that Very Old Joe is in way over his head. Under BIDEN , going to the Saudis reek of desperation of a impending energy crisis .Energy independence is critical to the national security and interest of the United States. Finding yourself at the whims of energy producers has forced the U.S. into unsavory relationships with OPEC states has led Biden begging to adversaries .(6)>> So if things go sideways, Biden starts looking like Jimmy Carter. Which will be a disaster for Dems. Gas prices at all-time highs and inflation soaring to levels not seen since the malaise of Jimmy Carter. During the last presidential campaign, Biden claimed he would commit to ending fossil fuels under his watch – a promise he has done his very best to fulfill. On the day he took office, Biden immediately put 10,000 employees working on the Keystone Pipeline on the unemployment rolls. He cancelled further work to open the 10-02 area of ANWR in my home state of Alaska. He kowtowed to eco-activists and installed radical environmentalists into key Secretary positions in Interior and Energy, along with the Director of the EPA.In the last 18 months, his Administration has implemented policies that removed American energy independence. The comparison between the two presidents is popping up with pundits and politicians. Rep. Jim Jordan (R-Ohio) tweeted last year that Biden “is the new Jimmy Carter,” for example.What is clear is that the 1970s was a pivot point for energy.Political actions following the Arab oil embargo in 1973 and 1974 and the Iranian Revolution in 1978 and 1979 shaped the energy landscape for decades. They helped bring about the 55 mph speed limit, the Department of Energy and the Strategic Petroleum Reserve.Moreover, the 1970s’ energy upheaval wasn’t brief. Issues that dominated the decade like higher energy costs hammered three consecutive presidential administrations, and their struggles to respond would shape their political careers.Fifty years on, Biden is juggling his own energy crisis, following his embargo on Russian crude oil as retaliation for President Vladimir Putin’s war against Ukraine.(7)>>As it stands, gas prices are at their highest level in seven years. Pete Buttigieg just bragged that high gas prices are pushing Americans to electric vehicles. Now you know why the Biden Administration refuses to unleash American energy. U.S. is not heavily dependent on Russia for its oil, but its numbers are slightly understated. And while it was correct in its assertion that oil companies have recorded record profits, it ignored that those gains followed pandemic-era losses. Oil supply disruptions would be key to the outlook for gasoline, with Russia the third largest producer of oil in the world, after the United States and Saudi Arabia, according to 2020 data from the U.S. Energy Information Administration, which pegged its production level of petroleum and other liquids at 10.5 million barrels a day, or about 11% of the world total.It was on July 15, 1979, that Jimmy Carter delivered what came to be known as his “malaise” address to the nation — though the word did not appear in the text. Intended as a bold, broad-brush speech about “about national concerns, the energy crisis, reorganizing the government, our nation’s economy, and issues of war and especially peace,” it has gone down in history as a political suicide note.
