Biden’s only realistic option: reverse his dumbest decision.

Stop funding Russia’s aggression and slow the rate of inflation.

Yep, we’re talking about oil …

Remember when Trump got the U.S. to energy independence?


Focus on the dark line on the above chart … it depicts the U.S. trade deficit (or surplus) in crude oil & liquid fuels (mostly natural gas condensate).

Biden inherited a trade surplus … exports of crude oil & oil products exceeded the total imports of those goods. (note that the dark line dipped below zero on the y-axis in 2020).

But, in 2021, imports of crude oil turned upward and the trade surplus evaporated.

Said differently, the U.S. was net energy independent in at the end of the Trump administration … but, thanks to Joe’s policies, we’re net energy dependent again.

How did he do it?

By signing executive orders aimed at crippling (or killing the domestic oil industry) by essentially stopping new oil exploration and transport pipelines (e.g. the XL Canada to U.S. pipeline)


Bottom line, Biden’s decision to curb U.S. oil drilling & production has literally fueled inflation (<=pun intended) and, to a large extent, funded Putin’s war chest.

On the latter point, let’s run the numbers…


In 2020, the U.S. produced 11.3 million barrels per day (MBPD) of crude oil and liquified natural gas (LNG).

But, the U.S. consumed 17.2  MBPD … and had to import 5.9 MPD (the red number above).

Note that Russia was the 2nd largest producer in the world @ 10.1 MBPD … and exported 6.9 MBPD.


Let’s dissect the U.S. imports…

In 2021, U.S. oil imports increased to 8.5 MBPD.

Where is that oil coming from?


About 1/2 comes from Canada … an ally, close to the U.S. geographically and politically.

So what did Joe do?

Kill the XL pipeline project.

The implication: less oil from Canada … and higher costs (and environmental risk) by trucking that is supplied.

Even more important, the U.S. is now importing almost 600,000 barrels per day of oil from Russia.

At current rates, that’s 217 million barrels of oil bought from Russia each year.

What’s the dollar value of those purchases?

Let’s look at oil prices …


Rounding up a bit to simplify the arithmetic, crude oil prices are now at about $100 per barrel.

So, 217 million barrels has a market value of over $21 billion each year. That’s money flowing into Putin’s coffers.

Note: That’s about $9 billion more than the oil would have been market valued on Joe’s inauguration day.

How’s Putin using that windfall?

It’s reasonable conjecture that a fair chunk of it is funding Russia’s aggression against Ukraine.

So, what to do?

If Biden wants to send a clear signal to Putin, he should “follow the data” and rescind his oil-crushing executive orders … TODAY.

While not immediate, that move can cut the flow of funds to Putin by reducing our direct oil purchases from Russia … and by, perhaps, depressing global oil prices.

There aren’t a lot of options, Joe.

3 Responses to “Biden’s only realistic option: reverse his dumbest decision.”

  1. Worth Reading: Putin’s motivations and Biden’s responses. | The Homa Files Says:

    […] Biden’s only realistic option: reverse his dumbest decisions. Pump oil to stop funding Russia’s aggression and slow the rate of inflation … here’s the data! […]

  2. News flash: Putin puts his nuclear forces “on alert”. | The Homa Files Says:

    […] For detail & analysis, see Biden’s only realistic option: reverse his dumbest decisions. […]

  3. Greater threat to the planet: Putin or climate change? | The Homa Files Says:

    […] Biden’s only realistic option is to reverse his dumbest decisions. […]

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