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tries such as Russia, Saudi Arabia, and other world oil producers are interested in
electing Biden as president because it would hurt shale oil production and shale
competitors by reducing production. They will benefit, but this is a misconception
because Russia and Saudi Arabia are worried about not electing Trump, and this
concern is due to the impact of Biden’s policies on the process of reducing global
oil demand.
Biden will lack the cordial relationship that Trump had with Saudi Crown Prince
Mohammed bin Salman. Saudi Arabia is the largest member of OPEC. Thus, Biden
may not be as involved in the OPEC production policy as Trump. Unlike Trump,
who has repeatedly been sending tweets, Biden is likely to use quiet diplomatic
channels to influence OPEC. Any influence that Biden might have as the President
of the United States is likely to be aimed at the same goal, which is to maintain oil
at a reasonable price. Every president in the United States needs cheap fuel for consumers. Similarly, for Biden, in line with his ambitious climate program, fuel prices
must be at a level where clean energy alternatives to fossil fuels seem reasonable.
Trump interacted more with OPEC than did previous US presidents. Trump often
influenced OPEC’s production policy with his tweets and phone calls, arguing that
oil prices should be low enough for consumers and high enough for drilling companies. His sanctions against Iran and Venezuela also helped remove major historical
obstacles to OPEC’s pro-Washington policy and strengthened the power around
Saudi Arabia and Russia, which were part of the OPEC Plus. The Trump administration’s policy of maximum pressure on Iran was able to reduce Iran’s oil exports
and prevent foreign companies from investing in Iran’s energy infrastructure.
Energy Diplomacy Under Biden
tries such as Russia, Saudi Arabia, and other world oil producers are interested in
electing Biden as president because it would hurt shale oil production and shale
competitors by reducing production. They will benefit, but this is a misconception
because Russia and Saudi Arabia are worried about not electing Trump, and this
concern is due to the impact of Biden’s policies on the process of reducing global
oil demand.
Biden will lack the cordial relationship that Trump had with Saudi Crown Prince
Mohammed bin Salman. Saudi Arabia is the largest member of OPEC. Thus, Biden
may not be as involved in the OPEC production policy as Trump. Unlike Trump,
who has repeatedly been sending tweets, Biden is likely to use quiet diplomatic
channels to influence OPEC. Any influence that Biden might have as the President
of the United States is likely to be aimed at the same goal, which is to maintain oil
at a reasonable price. Every president in the United States needs cheap fuel for consumers. Similarly, for Biden, in line with his ambitious climate program, fuel prices
must be at a level where clean energy alternatives to fossil fuels seem reasonable.
Trump interacted more with OPEC than did previous US presidents. Trump often
influenced OPEC’s production policy with his tweets and phone calls, arguing that
oil prices should be low enough for consumers and high enough for drilling companies. His sanctions against Iran and Venezuela also helped remove major historical
obstacles to OPEC’s pro-Washington policy and strengthened the power around
Saudi Arabia and Russia, which were part of the OPEC Plus. The Trump administration’s policy of maximum pressure on Iran was able to reduce Iran’s oil exports
and prevent foreign companies from investing in Iran’s energy infrastructure.
Energy Diplomacy Under Biden