The dynamics of the US energy and foreign policies

In this interview with Cyba Audi from Asharq Business Bloomberg, Dr Carole Nakhle, CEO of Crystol Energy, discusses the dynamics of the US foreign and energy policies, and Biden’s Administration reach to countries like Venezuela, which sits on the largest proven oil reserves in the world.

Venezuela’s oil production has been curtailed by US sanctions. However, the sanctions have exacerbated an already dire situation. Since late President Chavez came to power, the oil industry in the country has struggled with underinvestment. Lifting of US sanctions would therefore be a symbolic move rather than a fundamental solution for the crisis in the oil markets.

On the question related to energy independence, Dr Nakhle argued the slogan is much favoured among US politicians. However, the oil market is global and prices are determined by the dynamics of global demand and supply. US consumers are therefore exposed to changes in global markets, irrespective of whether their country is energy independent or not.

The Biden administration, though, wants to tell its people it is doing its best to reduce the burden of higher oil prices on them. This administration is trying to achieve a delicate balancing act between keeping the electorate happy and pursuing its aggressive climate change policies.