Tag Archives: drill baby drill

The Impact Of President Trump’s Energy Policies

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On Saturday, Stephen Moore posted an article at Hot Air discussing the impact of President Trump’s energy policies.

The article notes:

Well, so much for the vaunted renewable energy “transition” to save the planet. This was always a fable. We get 80% of our energy from fossil fuels, and with Donald Trump now in the White House, that ratio is rising, not falling.

A Reuters headline from recent days tells the real story: “US crude production to hit record 13.41 million (barrels per day) in 2025 before falling.”

The data from the International Energy Agency tells the same story about clean natural gas: We’re producing more of it than ever before. Why shouldn’t we? The U.S. has greater access to clean, cheap, reliable and made-in-America natural gas than any other nation. Natural gas is far cheaper and less land-intensive than ugly wind and solar farms that industrialize America’s natural landscape beauty.

All told, American energy in the ground is a $50 trillion treasure chest right under our feet. The commercial value of this abundance is — nearly enough to pay off our entire national debt. We would be lunatic to leave it in the ground.

The rapid revival of America as an energy superpower under Trump should come as no surprise. This is continuation of a 15-year trend thanks to the fracking and horizontal drilling revolution that has nearly tripled U.S. annual production.

The principle of supply and demand applies to fossil fuels.

The article notes:

Crude was over $100 in 2022 and generally ranged between $70 and $85 for the rest of Biden’s term. At $100 a barrel, drillers will search for oil in your backyard. If it were not for Biden’s environmental regulations and the cancellation of vital energy infrastructure, such as the Keystone XL pipeline, we would have produced far more oil under Biden. Gas wouldn’t have gone up to $5 a gallon.

What’s impressive about the Trump oil production spike is that it’s happened even as the global spot price of oil has fallen. In other words, we’re getting the best of both worlds: made-in-America energy AND low prices at the pump. The Energy Information Administration reports forecasts that gas prices will keep falling to below $3 a gallon by next year. That is, unless you live in California, where gas still costs above $5 a gallon.

Let’s not forget the national security benefits from this pro-drilling strategy. More U.S. drilling means less profits for Iran, Russia and other enemies of freedom. It weakens Vladimir Putin’s hand and drives him to the negotiating table since the Russian economy is dependent on natural gas exports for survival.

As I have previously stated, when the crude oil price comes down to $55 a barrel, the Ukraine war will end. It won’t have anything to do with anyone’s negotiating skills–it will be the result of the economic situation in Russia caused by falling oil and gas prices.

Planting A Land Mine As You Walk Out The Door

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Despite the talk of a smooth transition of power, the Biden administration has already planted a few land mines in the path of the incoming Trump administration. The agreement with the dock workers will expire three days after President Trump is inaugurated–hardly enough time to negotiate a settlement–putting a possible strike front and center in the first few days of the new administration. The Biden administration has about two months to plant a few more land mines, and one of the ones they have recently planted is going to be a serious challenge.

On Monday, The Epoch Times reported:

Anonymous U.S. officials have said that President Joe Biden has authorized Ukraine to use long-range missiles provided by the United States to strike targets in the Russian region of Kursk, which is currently occupied by Ukraine in the ongoing war.

Ukrainian forces launched a significant cross-border operation into Russia’s region of Kursk earlier this year. Intense fighting is ongoing as Russian forces attempt to reclaim lost territory. Ukraine seized several settlements and is still holding strategic positions. In response, Russia has allowed 11,000 North Korean soldiers to amass in Kursk to aid its fight.

Last year, after North Korea supplied Russia with long-range ballistic missiles, the Biden administration responded by greenlighting Ukraine’s use of the long-range Army Tactical Missile System—with a range of about 190 miles—for targets within its territories, including in Russian-occupied Crimea.

There is a solution to this escalation of the war in Ukraine that is possible before the situation totally melts down (no pun intended). Through back-channels, President-elect Trump could make it clear to President Zelensky that any attacks into Russia would result in the total cutoff of aid to Ukraine as soon as President Trump takes office. In the past, President Trump has shown that he has the ability to use economic leverage to avoid using military force. In this case, it would have a good chance of working.

There are a few things to look at as consequences of a Trump presidency in Ukraine and in the Middle East. If ‘drill, baby, drill’ begins on day one, the price of oil will drop relatively quickly. OPEC will probably cut back their production in an effort to keep prices high, but in the long run that will not work. If America can flood the market with oil and natural gas, the income to Russia and Iran will drop drastically as oil prices drop. At lower oil prices, Russia cannot afford the war with Ukraine and Iran can not afford to fund terrorism to the extent it has been. Drill, baby, drill in America is part of a recipe for a more peaceful world.