The Biden administration's environmental crowd-pleasing crusade against carbon emissions is obscuring a very inconvenient truth about U.S. energy policy: oil and gas production are way up.
Why it matters: President Biden's assertive environmental policy is helping to fortify his (vulnerable) left flank with restive environmental activists, and drawing pushback from critics.
- Still, it's taking place against a backdrop of soaring fossil fuel production that's made the U.S. a global leader on the energy market league tables.
Driving the news: The White House began 2024 with a bang, initiating carbon dioxide counter-offensives on multiple fronts like natural gas, automobiles and industrial emissions.
- The irony (or dichotomy?) is what led geopolitical analyst Ian Bremmer to call it a "hush-hush" oil boom, fueled by a shale bounty that's made the world's largest economy increasingly energy independent — a policy goal that was elusive for decades.
By the numbers: U.S. crude output closed out 2023 at a record, topping 13 million barrels per day.
- And that figure only tells part of the story; S&P Global Insights noted in December that America is producing more oil than any other nation in history.
- In fact, total domestic liquids production is north of 21 million barrels per day, S&P estimates, with the non-crude and condensate portion churning out massive quantities of natural gas and biofuels.
The other side: Republicans have bemoaned Biden's environmentally-friendly approach, pushing back on everything from permitting policy for oil drilling, carbon emissions, and the controversial decision to pause liquefied natural gas exports.
- At a CERAWeek press conference on Thursday, Alaska Gov. Mike Dunleavy hit out at policy "uncertainty" hampering resource development in his energy-intensive state, while endorsing another term for presumptive GOP nominee Donald Trump.
- Still, the numbers don't lie, even if Biden's political opponents don't like them — and the president himself is reluctant to claim ownership.
What they're saying: In a post last week, Bremmer pointed out the "greatest energy boom you've never heard of" has transformed America into "the world's top energy superpower."
- While it's not good news for fossil fuel emissions, the analyst backed the energy surge as undeniable leverage in an increasingly unstable world.
- "If this all seems like tremendous news for America, that's because it is. And yet, you probably haven't heard anything about it. It's just too politically inconvenient a feat for either party to acknowledge (let alone celebrate)," the analyst wrote.
Yes, but: Prodigious domestic production is expected to take a breather this year, and there are big questions swirling around global demand as China's economy struggles to rebound.
The bottom line: As awkward as it may be for Biden to embrace — and a near-certain headwind for the fight against climate change — the U.S. energy surge is more positive than negative.
