Rep. Ro Khanna (D-CA) recently argued that soaring gasoline prices in his district are largely induced by actions from Saudi Arabia to restrict oil production.
Saudi Arabia joined Russia and other members of OPEC+ in slashing petroleum output by two million barrels per day beginning in November, constituting 2% of global oil demand. Khanna, who represents Silicon Valley, argued during an interview with Fox Business that the kingdom bears much of the responsibility for high energy prices.
“First, I blame the Saudis. They are totally outrageous and ungrateful in cutting production and hurting the American people,” Khanna said, also blaming the Federal Reserve for “buying back corporate bonds and mortgages for way too long” and Russian President Vladimir Putin for causing “aggravated supply chains” through the Ukraine invasion.
Gas prices in California have reached an average of $6.20 per gallon, according to data from AAA, while prices in Khanna’s district have reached $6.50 per gallon. One year ago, prices at the pump were $4.45 per gallon.
During a visit to Saudi Arabia three months ago, President Joe Biden touted the necessity to “ensure adequate supplies” of energy and fulfill “global needs.” Though he did not specifically mention oil, many had speculated that encouraging higher output in response to elevated gas prices in the United States was a primary factor behind Biden’s visit — a suspicion that appeared to be validated after the Saudi government released a statement this week revealing Biden’s request to delay the production cut until after the midterm elections.
In another Fox Business interview, Khanna said that the Saudis betrayed the United States, the nation’s primary supplier of military equipment, through the decision to reduce petroleum output.
“The priority is to get gas prices low, and what we need to do is be very tough on Saudi Arabia,” he told anchor Neil Cavuto. “After all we have done for that country … for them to do this to the American people is outrageous, and we should say that if they don’t reverse their decision, we are going to stop sending them weapons.”
The Biden administration has garnered criticism for nixing expansions to the Keystone XL pipeline and slowing federal oil leases to a crawl. When pressed by Cavuto on why regulators are discouraging domestic oil production, Khanna noted that energy producers have neglected to invest in refinery capacity. Cavuto retorted that incentives to build new refineries would be foolish given the administration’s preference for renewable energy.
Members of the Biden administration have indeed contended that high fuel costs should provoke a transition toward renewable energy rather than the prioritization of raising domestic output. Treasury Secretary Janet Yellen said during a speech last month that the Inflation Reduction Act, which was recently passed into law, contains reforms that will prevent American reliance on foreign oil.
“Over the past two years in particular, we’ve seen the direct consequences of our continued dependence on fossil fuels. Not only do we continue to contribute and subject ourselves to a rapidly warming climate,” Yellen remarked, “but we expose ourselves to the type of energy market volatility we’ve experienced in the wake of Russia’s brutal war on Ukraine. No country controls the wind and the sun. And countries that can harness those sources of energy will make their economies more resilient and secure.”
