Biden’s Chevron Oil Deal Won’t Benefit Americans
Biden’s Chevron Oil Deal Won’t Benefit Americans
An oil deal was announced over Thanksgiving weekend with Chevron, and all Americans were supposed to cheer the news. However, there are two catches to this. One, the oil deal is for Venezuelan oil. Secondly, it won’t benefit Americans at all.
The “stupidity” of Biden officials encouraging the oil giant to go in Venezuela “is completely mind-blowing,” Fox News contributor Liz Peek said on “Mornings with Maria” Monday.
According to a recent announcement made by the U.S. Treasury Department, Chevron has been issued an expanded license to import petroleum produced by its joint venture with the Venezuelan state oil-firm, PdVSA.
The approval comes after talks resumed between the Venezuelan government, led by socialist President Nicolás Maduro, and the opposition Unitary Platform.
Keep in mind, Venezuela is run by one of the worlds worst socialists and the people in that country have suffered greatly under Nicola Maduro’s rule.
Chevron has had a presence in that country for years. However, once their economy tanked, Chevron had to pull the plug on most of its drilling sites. Plus, the oil company they partnered with, Maduro-run PdVSA was losing money hand over fist in part due to years of sanctions from the U.S.
Meanwhile, as we’ve noted repeatedly, the Biden Administration tanked well over 11,000 jobs when the Keystone Pipeline was axed, and has shut down permits and leasing on public lands across the country. Thus, when gas prices went sky high, the anti-oil crowd in the Administration went after the Strategic Petroleum Reserve instead of allowing drilling leases on key areas of public land.
But now, drilling is ok! As long as that drilling happens in another country.
Good news. Pumping oil is ok as long as it’s propping up an America hating regime that abuses its own people.— Nick Freitas (@NickForVA) November 28, 2022
This fabulous deal won’t benefit Americans one iota. It certainly won’t ensure an influx of more oil back into the Strategic Petroleum Reserve!
If the fields return to pre-sanction levels, it’ll produce about 200,000 barrels per day. For Chevron, it’s a drop in the bucket – less than 7% of daily output. Chevron is owed over $4 billion from its projects in Venezuela with Petroleos de Venezuela, which it should recoup. But the license prohibits its Venezuelan partner from profiting, so prospects for higher production appear capped. And this year, the company is expected to have a net income of $38 billion from sources around the world, according to Refinitiv.
The eased restrictions do little for the average American, too. Oil equipment degrades, and highly skilled workers have fled the country. As a result, the fields aren’t as prolific, and the oil could be more costly to extract. This production in Venezuela would amount to about 1% of U.S. demand. Furthermore, Venezuela’s Orinoco is also among the most greenhouse gas intensive fields in the world, with about twice the total emissions per barrel of Saudi Arabia’s Ghawar, according to an index created by OCI+. If countries, including the United States, start to clamp further down on emissions, the costs of cleaning up oil could be passed on.
Look at that again. Drilling at full capacity might net about 7% output, and only be about 1% – barely in my opinion, of what Americans consume. Therefore, this won’t move the needle for anyone in this country.
Here’s something else to consider. This “deal” is supposed to see money flow ONLY into Chevron’s coffers, not into PdVSA’s accounts. Given how that country is run, does anyone think that part of the deal will go smoothly? I don’t think it will. It wouldn’t surprise me if the bribery games ended up netting PdVSA and by proxy Maduro himself, a considerable bucket of money.
Keep in mind, Maduro has been cozying up to Iran over the last year, so this Chevron deal is more than nonsensical, it is a foreign policy embarrassment.
Chevron should continue lobbying the U.S. government to add more refinery capacity here, drill on public lands, and cut their losses regarding Venezuela.
Here’s another fact to consider as pointed out by Hot Air’s Jazz Shaw, RUSSIA owns most of Venezuela’s oil resources now. Therefore, it is safe to presume not only will Maduro’s bank account be enriched with this deal, so will Putin’s.
Let’s not forget that many of the illegals arriving at the sieve laughingly called a border are from Venezuela. Do you think if they hear that Chevron is going to restart drilling in their home country, they’ll turn around and head back? Not. A. Chance.
Here in the United States, all we hear about is how bad the oil companies are and how fabulous the hideously expensive windmills and solar panels will be. We are told time and again that drilling will kill our environment, which is why all the permits and leases are canceled.
Truly incredible.— Rep. Vern Buchanan (@VernBuchanan) November 28, 2022
President Biden would rather cut deals with a dictator than unleash American energy independence.
Why rely on Venezuela’s oil reserves when we have the ability to produce and refine cleaner oil right here at home?https://t.co/NbIqdKqmdu
But now it’s ok to drill in another country? It’s ok to harm THEIR climate drilling for oil, but not ours?
The hypocrisy surrounding this Chevron oil deal is astounding.
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Feature Photo Credit: Biden burning oil, original artwork by Victory Girls Darleen Click
Well, the headline looked good yesterday.