{"id":1518970,"date":"2022-06-16T12:34:29","date_gmt":"2022-06-16T16:34:29","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1518970"},"modified":"2022-06-16T12:34:43","modified_gmt":"2022-06-16T16:34:43","slug":"oil-and-gas-industry-responds-to-bidens-accusations-they-are-not-impressed","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/oil-and-gas-industry-responds-to-bidens-accusations-they-are-not-impressed\/","title":{"rendered":"Oil and Gas Industry Responds to Biden\u2019s Accusations \u2013 They Are Not Impressed"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">26<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Foil-and-gas-industry-responds-to-bidens-accusations-they-are-not-impressed%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1518970&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div><\/div>\n<p>This week, Joe Biden made a big deal out of <a href=\"https:\/\/www.cnbc.com\/video\/2022\/06\/15\/biden-sends-letter-warning-oil-companies-on-historically-high-refinery-profits.html\/\" rel=\"noopener\" target=\"_blank\">sending a \u201cwarning letter\u201d<\/a> to U.S. refineries about their supposedly inflated profit margins this year. It was part of his strategy of attempting to <a href=\"https:\/\/hotair.com\/ed-morrissey\/2022\/06\/15\/biden-im-demanding-more-output-from-greedy-refiners-to-fight-inflation-n476404\" target=\"_blank\" rel=\"noopener\">blame the oil and gas industry<\/a> for the high prices everyone is paying for gas, diesel, and heating oil. (At least when he\u2019s not trying to blame Vladimir Putin.) In very short order, two associations representing different elements of the industry got together and sent a letter right back to the President. The American Fuel &#038; Petrochemical Manufacturers (AFPM) joined with the American Petroleum Institute (API) in an effort to patiently explain to the president <a href=\"https:\/\/www.afpm.org\/sites\/default\/files\/2022-06\/20220615%20POTUS%20Letter%20re%20Refining%20Capacity%20FINAL_AFPM_API.pdf\" target=\"_blank\" rel=\"noopener\">how the oil and gas industry actually works<\/a> as well as the challenges they are currently confronting leading to significant supply-side issues. Whether this sinks in or not remains to be seen. <\/p>\n<blockquote>\n<p>\u201cOur industry is dedicated to providing affordable, reliable, and sustainable fuels and other petroleum products for Americans and our global allies, as we have done for decades, including throughout the COVID pandemic when many of our companies experienced financial losses\u2026<\/p>\n<p>\u201cWith a global energy crunch underway, much focus has been placed on crude oil supply and demand. Yet crude oil has no utilitarian value until it runs through a refinery and gets processed into fuels like wholesale gasoline, diesel and jet fuel. Because of this, it\u2019s not an overstatement to say that energy security requires a strong refining sector.<\/p>\n<p>\u201cAFPM, API, and our member companies appreciated the opportunity to make contact with your administration\u2014as recently as this week\u2014both to share data and analysis on what is happening in global energy markets and to provide concrete and practicable solutions for addressing today\u2019s high-price environment.<\/p>\n<\/blockquote>\n<p>AFPM also included a link to <a href=\"https:\/\/www.afpm.org\/newsroom\/blog\/refining-capacity-101-what-understand-demanding-restarts\" target=\"_blank\" rel=\"noopener\">an article<\/a> that they already prepared for both the government and the public that explains the complexity of the refinery process and how the global oil market actually works. This is a subject that we previously <a href=\"https:\/\/hotair.com\/jazz-shaw\/2022\/05\/23\/its-not-just-electricity-were-heading-for-shortages-of-diesel-jet-fuel-and-gasoline-n471325\" target=\"_blank\" rel=\"noopener\">covered here in great detail<\/a> while trying to sound the alarm over the liquid fuel crunch that\u2019s approaching.<\/p>\n<p>We\u2019ve lost seven refineries in the past few years. Some were shut down while others were converted to process biofuels instead of gasoline, diesel, and jet fuel. Lower refinery capacity means less of those products can be delivered each day. As the linked AFPM article explains, the refineries that went offline can\u2019t simply be \u201crestarted\u201d with the flip of a switch as Biden is demanding. It\u2019s a process that takes years.<\/p>\n<p>Also, there isn\u2019t just one \u201coil and gas industry\u201d that\u2019s responsible for all of this. There are literally hundreds of different companies involved in energy exploration, drilling, liquid oil or gas transportation, refining, and the eventual delivery of finished fuel products. Each operates inside the constraints of the global market. Yelling at them and saying \u201cthe industry\u201d needs to \u201cdo something\u201d to lower gas prices is a fool\u2019s errand. But the current conditions were caused by a combination of government policies and global market changes. <\/p>\n<p>The problem here is that we have people in the government \u2013 including the President \u2013 trying to tinker with a massive industry when they clearly have no clue whatsoever as to how it works. This isn\u2019t a political problem with a political solution available. It\u2019s a combination of regulatory issues and market forces that march to their own drums. And no \u201cstrongly worded letter\u201d is going to change those facts. There are things the Biden administration could be doing today that would begin to alleviate these issues, but they refuse to do them because such actions would be politically unpopular with the liberal base.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>This week, Joe Biden made a big deal out of sending a \u201cwarning letter\u201d to U.S. refineries about their supposedly inflated profit margins this year. It was part of his<\/p>\n","protected":false},"author":1,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1518970","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1518970","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1518970"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1518970\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1518970"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1518970"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1518970"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}