President Trump’s approach to energy is strategic, while former President Biden’s was not.
The US is scheduled to meet with Saudi Arabia on March 24 to negotiate a peace deal between Ukraine and Russia. A trip to Riyadh is a diplomatic chess move. Biden did not play the game in the same way.
Trump wants to strengthen his relationship with Saudi Arabia’s Crown Prince Mohammed bin Salman and increase oil production to stabilize the market, thus reducing prices and countering Russia’s efforts to boost oil prices. Biden did not make the same mistake.
Gas prices have been lower for a year, providing relief to Americans concerned about inflation and the boost from the Trump White House. The energy price reduction campaign is crucial to the administration’s success. Biden’s approval rating dropped when gasoline prices hit $5 per gallon in 2022.
OPEC+ agreed to increase production in April, with production expected to reach 2.2 million barrels per day from next month to September 2026. The price of crude oil is hovering around $67 per barrel, down from $84 a year ago. Trump’s outreach to bin Salman is key to achieving this goal.
In 2019, Biden referred to Saudi Arabia as a “pariah.” Trump has not made the same mistake. Gas prices have fallen 11% in the past year. The price of crude oil was around $78 when Russia invaded Ukraine, but now it’s around $67, thanks to OPEC+’s production increase.
Saudi Arabia is still the “swing producer” of oil, and its leaders will guide OPEC’s policy. Trump’s outreach to bin Salman has led to reduced oil prices.
Trump believes that the US should reduce its reliance on foreign oil and increase its own production, but this process takes time. The administration is considering various options, including federal land leases and royalties.
Saudi Arabia is the world’s largest oil producer, and bin Salman’s leadership will guide OPEC’s policy.
Trump has spoken with international leaders, including bin Salman, about the need to reduce oil prices. His efforts have had a positive impact on the global oil market.
Oil prices have dropped 1% since his speech, and OPEC has announced increased production from April.
Trump’s administration is working to increase US oil production, particularly in areas like Alaska, but this process takes time. In the meantime, the White House is encouraging oil companies to invest in oil field development by reducing royalties and methane leaks required for federal land leasing.
Biden did not get in the way to insult bin Salman, unlike Trump, who has maintained a strong relationship with the Saudi leader.
