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President Joe Biden shared his plan to sanction Russia by shutting down the Russian pipeline as a “punishment to hurt the Russian economy.”
Tuesday, on “The Chad Prather Show,” Chad explored a possible unintended admission made by President Biden when he announced his plan to impose sanctions on Russia. Suppose Biden believes shutting down an oil pipeline to sanction Russia will damage the Russian economy. What did Biden expect to happen to the U.S. economy when he shut down the Keystone XL Pipeline?
Chad explained that American oil companies stopped drilling because oil prices dropped due to demand destruction. Oil wells decline over time, Chad explained, and when we stop drilling, our volumes drop off quickly. He added that when oil companies start back up drilling when prices are correct, it takes time to replace the volumes of oil lost due to the natural decline of the wells. Chad questions if opening the American oil valve is the right move for America?
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Source: TheBlaze
