JP Morgan CEO Believes Biden Is Getting Energy Completely Wrong

At least one CEO in the financial industry isn’t so enthralled by the movement for environmental, social, and governance (ESG), that they have lost their minds. BlackRock CEO Larry Fink speaks highly of the benefits of high gas prices. Jamie Dimon, CEO of JPMorgan Chase, provides a great counterbalance. CNBC interview with Dimon, Dimon criticized the Biden administration’s policies on energy and called for the U.S. leadership.

Fink believes that rising energy prices will decrease the “green premium” and encourage people to adopt renewables. Dimon’s view is more realistic. Biden’s administration is asking some of the most petro-dictators in the world to produce oil, rather than extract it from the ground. Dimon points out that this has not decreased fossil fuel consumption.

“Well, I think that we’re getting energy totally wrong. Which is, you remember, since the war began, you know Europe is going to be in trouble.”

“And that it was quite predictable that Putin would cut off some oil and gas, and that oil prices would rise. And, by the way for climate folks here, it’s made climate worse because people believe that higher oil prices and gas pricing reduce consumption, and reduce CO2. No. India, China, and the Philippines are poor nations. The Philippines, Vietnam, Indonesia, Philippines, and China are also turning their backs on coal plants.

NIMBY energy policies like those of Biden, Germany, and other EU nations have made the world more polluted. Western countries have outsourced fossil fuel production to the Middle East and Russia, which use less environmentally friendly extrusion techniques. China accounts for a large portion of the solar- and wind-powered equipment that they install. The CCP is also building record amounts of coal plants. These policies do not reduce CO2. They simply move the CO2 source to another country.

Biden has refused to compensate for any shortages resulting from the war in Ukraine. The administration’s policy however keeps the apocalyptic climate skeptics at home. They are also delusional. Dimon was the CEO that had to burst Representative Rashida Talib’s green bubble when she demanded that he commit to divesting fossil fuel companies during congressional hearings. Dimon replied, “Absolutely no, and that would mean the road to hell”

This seems to be a sincere viewpoint, and Dimon is concerned that the Biden administration will put the U.S. in this position. He warned during the interview:

“We have it totally backward. In my opinion, America should have been pumping crude oil and natural gas. It should have been supported. We’re trying to have our cake, and eat it too. So you have a problem this winter. It sounds like they have enough to last the winter.

However, we are facing a long-term problem. The world isn’t producing enough oil and natural gas to reduce the amount of coal, transition to a more sustainable future, or create security for the people. It would be considered a serious problem. This should be considered almost a matter of war, and nothing less.

The interviewer pointed out that Dimon was the only CEO of a major bank that survived the 2008 financial crisis. He is now warning Americans to be prepared for anything.

“People, don’t be surprised. As I didn’t expect, Nordstream 1 would be destroyed. It is not surprising that another pipeline or tanker will be blown up. It is crucial that people are prepared for this moment. America must play a leadership role. America is the swing producer and not Saudi Arabia. We should have done that in March. It’s almost too late. These are long-term investments.

Dimon is right. Dimon is correct. America has a shortage in refining capacity. This will not be fixed if firms like BlackRock or the Biden administration continue to attack the oil and gas industry. California Governor Gavin Newsom has threatened to penalize oil companies for “rank-price gouging”, as Scott Folwarkow (Vice President for State Government Affairs at Valero) pointed out in response to an inquiry by the California Energy Commission.

We can provide the following information regarding the separation of California prices from prices elsewhere in the United States. California is home to the most costly operating environment and the most hostile regulatory environment for refineries. According to Valero, California has the highest prices in the country. California policymakers have intentionally adopted policies that aim to eliminate the refinery sector. California’s policies require refiners to pay high carbon trade and carbon cap fees. They also have to charge gasoline prices that are higher than the low-carbon fuel standards. California has seen major refineries close down or shut down. You reduce the resilience of the supply chains when refinery operations are shut down.

It is not the pricing strategy used by oil companies. If there is no course correction, the political decisions of Democrats that are influenced by the apocalyptic lobby for climate change will result in higher prices today and in the future. There should be more CEOs speaking out about the obvious effects of policies like Dimon’s by the Biden administration.