FACT BRIEF

Are President Biden's energy policies responsible for Russia's increased oil and gas revenues?

Wednesday, March 2, 2022

By Austin Tannenbaum

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Russia's increased oil and gas revenue in 2021 is primarily the result of pandemic-related factors rather than President Biden's energy policies.

In 2020, global energy demand dropped due to business closures and restrictions on mobility enacted in response to COVID-19, driving down prices. Russia's oil and gas revenues subsequently took a hit.

In 2021, global energy demand recovered as lockdown measures were lifted and the economy reopened, driving up prices. Russia's oil and gas revenues rebounded in tandem.

President Biden's shutting down of the Keystone XL pipeline did not affect energy prices in the short-term as it was non-operational, being only 8% complete when construction was stopped. However, because it could have boosted supplies in coming years, its cancellation could theoretically impact price trends in the years to come.

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Sources

Reuters Russia's oil and gas revenue windfall

Bank of Russia External Sector Statistics

Statista Export value of crude oil from Russia from 2000 to 2021

Statista Export value of natural gas from Russia from 2000 to 2021

US Energy Information Administration Crude oil prices increased in 2021 as global crude oil demand outpaced supply

USA Today Fact check: Rising gas prices due to high demand and low supply, not Biden's policies

Reuters Though Keystone XL Pipeline had secured most of its funding, it was only 8% constructed

PhysOrg How the pandemic is harming the oil and gas industry

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