Sasse: Saudi oil deal with China is 'big, bad thing,' that could be sign of global shift away from US

The US produces 20% of the world's crude compared to Saudi Arabia's 12%. We produce 18.61 million barrels a day, but we use 20.54 million a day. China produces 4.86 million barrels a day while consuming 14.01 million barrels daily.

If the Biden administration was smart, which it is not, they would want to see US oil companies ramp up production for two reasons. The first is to help the global oil market now that nobody is buying Russian oil. Russia was the third-largest oil producer at 10.5 million barrels a day. That's less than 310K a day from what Saudi Arabia produces. The second reason to ramp up production would be to drive the prices down, which is not what Saudi Arabia would like to see happen.

The message to send would be, "Go ahead and price your oil under Chinese currency. We'll only produce more to drive the market price down more.

The Biden administration won't do that because it kowtows to the environmental special interest groups. We're screwed.
 
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