Biden urged China to release oil reserves to lower prices and boost economic cooperation (report)

President Biden called on Chinese President Xi Jinping to release crude oil from his strategic reserves in an effort to stabilize rising oil prices, the South China Morning Post reported. China is the world’s largest net importer of oil.

Biden and Xi held a virtual meeting earlier this week, where they covered a range of topics, including opportunities for economic cooperation between the two countries.

US Secretary of State Antony Blinken and Chinese Foreign Minister Wang Yi also addressed the subject two days before the presidential discussion.

President Joe Biden, left, speaks as he virtually meets Chinese President Xi Jinping, on screen, from the Roosevelt Room of the White House in Washington, Monday, November 15, 2021. The Secretary of State Antony Blinken, center, and Treasury Secretary Janet Yellen, right, also attended the meeting. (AP Photo / Susan Walsh)

A South China Morning Post report says China has indicated it is open to Biden’s request, but has yet to commit to specific action as it must consider its own domestic consumption needs. Liberation could be coordinated with other powers, including Japan, also a net importer of oil, and India, which has recently become a net exporter.

Vice Premier Han Zheng said the authorities should “strengthen energy trade management and reserve management to better guide and stabilize market expectations.”

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Representative August Pfluger, whose Texas district includes one of the nation’s largest energy-producing regions, lambasted Biden’s decision.

“I find it ironic that the week after COP26, President Biden is arguing for more oil in the market through coordinated releases of the Strategic Petroleum Reserve (SPR),” Representative Pfluger told Fox News. “After flattering and failing to convince OPEC to increase production, President Biden is now turning to another enemy in asking China to release its SPR as well. Instead, this administration should quickly approve pipelines. and permits to allow more drilling on American soil. “

Jason Modglin, chairman of the Texas Alliance of Energy Producers, confirmed Biden’s talk with China about releasing oil from its strategic reserves and told Fox News Biden’s call shows “the underlying need world of oil “and that the search for outside help” is only a temporary measure. ”

“If the government were serious about tackling price inflation due to oil supply constraints, it would encourage and approve more pipelines, LNG export facilities and provide certainty on federal policy to encourage the domestic production of oil and natural gas, ”Modglin said.

Pipes for the Keystone XL pipeline stacked in a yard near Oyen, Alberta, Canada on Tuesday, January 26, 2021. US President Joe Biden has revoked the license for TC Energy Corp.'s Keystone XL energy pipeline.  by executive order hours after its inauguration, the clearest sign to date that building a major new pipeline in the United States has become an impossible task.  Photographer: Jason Franson / Bloomberg via Getty Images

Pipes for the Keystone XL pipeline stacked in a yard near Oyen, Alberta, Canada on Tuesday, January 26, 2021. US President Joe Biden has revoked the license for TC Energy Corp.’s Keystone XL energy pipeline. by executive order hours after its inauguration, the clearest sign to date that building a major new pipeline in the United States has become an impossible task. Photographer: Jason Franson / Bloomberg via Getty Images

Biden’s appeal to China is the latest in a series of openings to foreign energy sources in an attempt to cope with rising energy prices. The combination of measures taken by Biden to limit oil production in the United States and a subsequent supply chain crisis has forced prices to all-time highs for gas and oil is causing a major crisis on consumers. Americans. U.S. oil production is down about 1 million barrels per day from its 2019 peak, with Russia filling most of the void to meet demand.

Biden acted quickly after taking office to implement his energy program by shutting down the Keystone XL pipeline, which would have transported the equivalent of 830,000 barrels of oil from the Alberta tar sands to refineries on the Gulf Coast by day.

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Recent reports have indicated that Biden may shut down the Line 5 pipeline that crosses Michigan, but he has yet to make a decision on the matter.

Despite these measures, the Biden administration also lifted sanctions on a pipeline that allows Russia to bring energy to Germany. Data from the US Energy Information Administration shows that Russia recently overtook Mexico and is now the second largest source of US oil imports – around 795,000 barrels per day.

Biden also tried to turn to OPEC to produce more crude oil, but the cartel has repeatedly refused to do so as part of its ongoing efforts to control and limit production where possible.

Willow Omarova, Biden’s candidate for the Office of the Comptroller of the Currency, said in February that letting U.S. energy companies go bankrupt could help fight climate change.

During a presentation for a “Seminar on Social Wealth,” Omarova argued for a United States National Investment Authority – a proposed federal agency that would work with the Treasury and the Federal Reserve to allocate capital public and private to green infrastructure companies, according to Data for Progress.

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“The NIA will be able to negotiate stakes in private companies that receive this public aid, whether as part of the systemic bailout or as part of individual restructuring aid, for example, for certain industries. struggling and businesses in transition, ”she said.

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