Selling its Soul to the Oily Devils? As Ukraine Conflict Rages, US Looks to Iran, Venezuela
The outrage about seeking oil from Iran and Venezuela is provocative, but much ado about nothing? United States are very reliant on Saudi oil and Saudi is known to be one of the Terror supporters globally. imports from Russia and Saudi Arabia have been similar according to the The U.S. Energy Information Administration (EIA)
The United States became the world’s top crude oil producer in 2018 and maintained the lead position in 2019 and 2020. U.S. oil refineries obtain crude oil produced in the United States and in other countries. Different types of companies supply crude oil to the world market.
United States exported more crude oil and petroleum products than it imported during the first half of 2021 by 120,000 barrels per day (b/d), or less than 1% of combined crude oil and petroleum product exports and imports. Those figures will change with shutdown of U.S. pipelines
World leaders are feverishly trying to extinguish the raging conflict in Ukraine, as warring delegations meet for another round of talks. But in Washington, all eyes are on the gas pump as Russian sanctions send prices to near-record highs. VOA’s Anita Powell reports from the White House.
In 2020, the United States exported about 8.51 MMb/d and imported about 7.86 MMb/d of petroleum1, making the United States a net annual petroleum exporter for the first time since at least 1949. Also in 2020, the United States produced2 about 18.40 million barrels per day (MMb/d) of petroleum, and consumed3 about 18.12 MMb/d. Even though in 2020, total U.S. annual petroleum production was greater than total petroleum consumption and exports were greater than imports, the United States still imported some crude oil and petroleum products from other countries to help to supply domestic demand for petroleum and to supply international markets.
The United States remained a net crude oil importer in 2020, importing nearly 5.88 MMb/d and exporting about 3.18 MMb/d. However, some of the crude oil that the U.S. imports is refined by U.S. refineries into petroleum products—such as gasoline, heating oil, diesel fuel, and jet fuel—that the U.S. exports.
A delegation of senior U.S. officials visited Venezuela Saturday for talks with members of President Nicolas Maduro’s government to explore the possibility of easing U.S. sanctions against the major oil producer. VOA reports
White House press secretary Jen Psaki said Monday the U.S. delegation discussed a range of issues, including energy security, as well as the health and welfare of detained U.S. citizens.
She said those two issues were “separate paths and conversations.”
Sources who participated in the talks told media outlets the discussions had been in the works behind the scenes for months but took on new urgency with the Russian invasion of Ukraine.
The U.S. under former President Donald Trump broke off diplomatic relations with Venezuela in 2019, after the U.S. recognized opposition leader Juan Guaidó as the country’s legitimate president, accusing Maduro of rigging the presidential reelection. The Trump administration also blocked all U.S. revenue to Venezuela’s national oil company.
The Wall Street Journal reports that in recent weeks, some U.S. investors have called on the Biden administration to lift sanctions on Venezuela so it can send more crude oil into the market. That would fill the gap if Western nations decide to impose a boycott on Russian oil. Chevron has also lobbied the administration to modify its license to accept and trade oil in Venezuela.
The sources say the U.S. delegation to Venezuela was led by Juan Gonzalez, National Security Council senior director for the Western Hemisphere; James Story, ambassador to Venezuela; and Roger Carstens, special presidential envoy for hostage affairs. Carstens was the top U.S. diplomat in Caracas when the Trump administration broke off relations with Maduro in 2019.
Meanwhile, The Biden Administration is scrambling to cut a nuclear deal and potentially take the international revolutionary guard off the terrorist list in exchange for oil, Iranian news reports.
MOD: The UK will phase out imports of Russian oil in response to Vladimir Putin’s illegal invasion of Ukraine by the end of the year, the Business Secretary Kwasi Kwarteng has confirmed today (Tuesday 8 March).
Under pressure from legislators the Biden administration is considering canceling oil imports from Russia. It needs alternatives in the crunch as oil prices soar. Other Western countries join in conditionally:
The phasing out of imports will not be immediate, but instead allows the UK more than enough time to adjust supply chains, supporting industry and consumers. The government will work with companies through a new Taskforce on Oil to support them to make use of this period in finding alternative supplies.
The UK is working closely with the US, the EU and other partners to end our dependence on Russian hydrocarbons in response to Russian aggression in Ukraine, recognising the different circumstances and transition timelines.
The import of Russian oil makes up 44% of Russian exports and 17% of federal government revenue through taxation – this move steps up the international pressure on Russia’s economy.
German MOD It’s not quite ready and agrees that this will take time if Germany does intend to cut oil supplies from Russia:
German Chancellor Olaf Scholz said he opposes cutting off energy supplies from Russia, calling imports of oil and gas of “essential importance” to the European economy.
While the European Union needs to find alternatives, “this won’t happen overnight,” Scholz said Monday in a statement. “It’s therefore a conscious decision on our part to continue the activities of business enterprises in the area of energy supply with Russia.”