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      Biden Accuses Oil Companies of ‘War Profiteering’ and Threatens Windfall Tax

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      The president has been eager to redirect public anger over gas prices as Democrats try to keep power in Congress in the midterm elections.WASHINGTON — President Biden threatened on Monday to seek a new windfall profits tax on major oil and gas companies unless they ramp up production to curb the price of gasoline at the pump, an escalation of his battle with the energy industry just a week before the midterm elections.The president lashed out against the giant firms as several of them reported the latest surge in profits, which he called an “outrageous” bonanza stemming from Russia’s war on Ukraine. He warned them to use the money to expand oil supplies or return it to consumers in the form of price reductions.“If they don’t, they’re going to pay a higher tax on their excess profits and face other restrictions,” Mr. Biden told reporters at the White House. “My team will work with Congress to look at these options that are available to us and others. It’s time for these companies to stop war profiteering, meet their responsibilities to this country, give the American people a break and still do very well.”The president’s embrace of new taxes on the energy industry heartened liberals in his party who have been urging him to take action for months. But it was more of a way to pressure the oil firms than a realistic policy prescription for the short term given that Congress is not even in session and would be even less likely to approve such a measure if Republicans capture one or both houses in next week’s election.Mr. Biden has been eager to redirect public anger over gas prices toward the oil industry and away from himself as Democrats try to overcome historical and popular headwinds to keep power on Capitol Hill. While the price at the pump has fallen significantly since topping out just above $5 a gallon in the summer, it is still much higher than when Mr. Biden took office and contributes to the overall inflation rate, which remains near a four-decade high.The president framed his case against the oil companies in terms that seemed clearly aimed at next week’s vote. “The American people are going to judge who is standing with them and who is only looking out for their own bottom line,” he said. “I know where I stand.”Republicans fired back at the president, faulting him for policies that they say discourage the energy industry from expanding capacity.The State of the WarGrain Deal: After accusing Ukraine of attacking its ships in Crimea, Russia withdrew from an agreement allowing the export of grain from Ukrainian ports. The move jeopardized a rare case of wartime coordination aimed at lowering global food prices and combating hunger.Turning the Tables: With powerful Western weapons and deadly homemade drones, Ukraine now has an artillery advantage over Russia in the southern Kherson region, erasing what had been a critical asset for Moscow.Fears of Escalation: President Vladimir V. Putin of Russia repeated the unfounded claim that Ukraine was preparing to explode a so-called dirty bomb, as concerns rose in the West that the Kremlin was seeking a pretext to escalate the war.A Coalition Under Strain: President Biden is facing new challenges keeping together the bipartisan, multinational coalition supporting Ukraine. The alliance has shown signs of fraying with the approach of the U.S. midterm elections and a cold European winter.“Haven’t American families suffered enough from President Biden’s damaging attack on American-made energy?” asked Representative Kevin Brady of Texas, the top Republican on the House Ways and Means Committee. “Desperately trying to salvage the midterm elections, now he’s proposing another dangerous policy that will increase energy prices and energy poverty while making America more vulnerable to foreign countries for our daily energy needs.”The oil industry accused the president of politicking, noting that gas prices have come down by roughly a quarter since summer. “Rather than taking credit for price declines and shifting blame for price increases,” said Mike Sommers, the president of the American Petroleum Institute, a trade group, “the Biden administration should get serious about addressing the supply-and-demand imbalance that has caused higher gas prices and created long-term energy challenges.”Mr. Biden’s statement came just days after the oil giants reported another three months of flush coffers. Exxon Mobil brought in a record of nearly $20 billion in profits for the third quarter of the year, 10 percent higher than the previous quarter and its fourth consecutive quarter of robust earnings. Chevron reported $11.2 billion in profits, just below the record it set the quarter before. The European-based Shell and Total Energies companies similarly reported that profits more than doubled from the same period a year ago.The five biggest oil companies generated more than $50 billion in profits in the second quarter, and the International Energy Agency has reported that total net income for the world’s oil and gas producers will double this year from last to a record $4 trillion. “Today’s high fossil fuel prices have generated an unprecedented windfall for producers,” the agency said.A half-dozen of the largest firms earned more in profit over the past six months than in all of last year and more than two and a half times what they earned in the same quarters of 2021, White House officials said. Mr. Biden said if the industry simply earned the same level of profits it has for 20 years, consumers would pay 50 cents less per gallon.The firms have used their profits in some cases for dividend increases and stock buybacks rather than increased production, which could bring down the price of oil and therefore trim their profits. Exxon Mobil raised its dividend on Friday, citing a commitment to “return excess cash” to shareholders.Mr. Biden has been sensitive to gas prices, an important barometer for the public mood. As the price at the pump hit record highs over the summer, the president’s approval rating slid to new lows, but as gas costs came down over the following three months, his own numbers improved. Likewise, according to polls, the rise and fall of gas prices is directly inverse to public feelings about whether the country is heading down the right or wrong track.Ron Klain, the White House chief of staff, is so attentive to the fluctuations that he checks the average price every day and often posts messages on Twitter pointing out when it dips further.“If you are filling your gas tank this weekend, you are seeing one of the cheapest Saturdays of the year,” Mr. Klain tweeted on Saturday. “Gas prices continue to drop nationally,” he added on Monday morning.The current national average of $3.76 a gallon is about three pennies less than it was a month ago and about $1.25 below the June peak, but still far above the $2.39 it was when Mr. Biden took office, according to AAA.The issue flared recently when Saudi Arabia led the OPEC Plus cartel to cut production by up to two million barrels of oil a day just before the midterm elections, a move that Biden administration officials considered a betrayal of a private understanding to increase supplies rather than the other way around.A windfall profits tax would impose an excise levy on the output of domestic oil producers. Congress would establish the tax rate, which could differ between independent producers and the biggest companies. It would be the first windfall profits tax in the United States in more than three decades, but since earlier this year, 15 European countries have proposed or enacted such levies, including Britain, Italy and Spain, according to the Tax Foundation.Urged by President Jimmy Carter, Congress imposed a windfall profits tax in 1980 after a sharp increase in oil prices spurred by an OPEC embargo. Lawmakers were trying to offset large industry tax deductions, including a depletion allowance for older wells with exhausting deposits and an array of deductions for drilling.But domestic production fell and dependence on foreign oil increased, while forecasts of revenue from the windfall tax turned out to be overly optimistic. Congress repealed the tax in 1988 after oil prices fell.Industry executives said Mr. Biden’s proposal to revive the tax would not increase supplies. “It’s a horrible idea, small thinking,” said Patrick Montalban, the president of Montalban Oil and Gas, a producer in North Dakota and Montana. “It’s going to take away from exploration and production of domestic oil and gas. It’s that simple. Total politics.”Democrats who have pressed Mr. Biden to consider such a tax applauded his statement. “It’s time for Congress to stand up to Big Oil and bring relief to consumers, instead of corporate stock buybacks and bonuses,” said Senator Sheldon Whitehouse of Rhode Island, who has introduced windfall profits tax legislation.But some liberals were unhappy that Mr. Biden was using the threat to leverage production increases. “Drilling more won’t lower prices for U.S. consumers,” said Robert Weissman, the president of Public Citizen, an advocacy group. “More investment in oil drilling will deepen our dependence on fossil fuels.”Investments in oil and gas exploration remain 17 percent below the 2019 level and half the level in 2014, when the oil business was enjoying a price boom, according to the International Energy Agency. Few new fields have been discovered in recent years, leading to ever-tightening supplies. And Wall Street has shied away from investing in hydrocarbons because of growing concerns about climate change.American oil production this year is averaging 11.87 million barrels a day, an increase of 4 percent from last year despite urging from the administration that companies drill and produce more. The number of rigs deploying has been increasing this year, although increases have slowed since summer.Shale oil production, which has been the engine of growth over the last decade, is expected to grow to roughly the level before the Covid-19 pandemic caused the 2020 economic downturn and collapse of oil prices.Peter Baker More

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      Biden Faces New Challenges With Coalition on Ukraine Support

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      The domestic and international consensus has shown signs of fraying as midterm elections loom in the United States and Europeans face the prospect of a cold winter.WASHINGTON — The White House said on Wednesday that it sees no current prospects for negotiations to end the war in Ukraine, even as President Biden faces new challenges keeping together the bipartisan, multinational coalition supporting the effort to drive out Russian invaders.The domestic and international consensus that Mr. Biden has struggled to build has shown signs of fraying in recent days with the approach of midterm elections and a cold European winter. But Mr. Biden’s advisers have concluded that President Vladimir V. Putin of Russia remains committed to force and that Ukrainian leaders are unwilling to give ground following recent battlefield victories.“Neither side is in a position to sit down and negotiate,” John F. Kirby, the strategic communications coordinator for the National Security Council, told reporters on Wednesday. “Putin is clearly continuing to prosecute this war in a brutal, violent way,” he said, while the Ukrainians given their momentum “are not in a position where they want to negotiate.”Mr. Kirby emphasized that the Americans will defer to President Volodymyr Zelensky of Ukraine while trying to strengthen his position in any negotiations that may eventually occur. “If and when it comes to the table,” Mr. Kirby said, Mr. Zelensky “gets to determine when that is; he gets to determine what success looks like, and he gets to determine what or what he is not willing to negotiate with the Russians.“But we’re just not there yet,” he said.The assessment came a day after a group of House Democratic progressives withdrew a letter to Mr. Biden calling for a revised strategy and broaching the possibility of direct talks with Russia to resolve the conflict. Although the 30 progressives backed off in the face of a backlash within their own party, the restiveness on the left served as a warning sign of fatigue after eight months of war financed in large part by American taxpayer dollars.The emerging erosion of support for the current strategy is more pronounced on the political right. Representative Kevin McCarthy of California, positioned to be the new House speaker if Republicans win the House next month as expected, last week threatened to curb future aid to Ukraine, aligning himself with former President Donald J. Trump and the Fox News host Tucker Carlson.On the other side of the ocean, European allies facing the onset of cold weather with Moscow controlling the fuel spigot see the future course of the conflict with Russia in different ways. Some former Soviet-bloc countries in Eastern Europe want Russia firmly defeated and its troops driven out of all of Ukraine, including Crimea, while countries like Germany, France and Italy believe such a full-scale victory is unrealistic and worry that Washington is not thinking clearly about how the war might end.Even between allies sharing similar views, tensions have risen over energy and defense strategy. President Emmanuel Macron of France and Chancellor Olaf Scholz of Germany met in Paris on Wednesday to discuss their differences over a French-backed European Union cap on natural gas prices that Germany has resisted even as it subsidizes its citizens’ gas bills.Ratcheting up the pressure further, Mr. Putin on Wednesday for the first time personally claimed that Ukraine was preparing to set off a so-called dirty bomb, repeating unsubstantiated assertions made previously by lower-level Russian officials. American officials once again dismissed the contention, calling it a possible pretext for Russia to escalate its attack on Ukraine.As Russian forces conducted an annual military exercise testing nuclear-capable missiles, the Biden administration imposed sanctions on more than 20 Russian and Moldovan individuals and entities reportedly involved in a Russian scheme to interfere in Moldova’s political system.For Mr. Biden, who has built a broad coalition for his approach at home and abroad, the next few weeks could be pivotal. While the Ukrainian war effort still enjoys wide support in the United States, polling suggests some attrition, especially among Republicans.Twenty percent of Americans interviewed by the Pew Research Center last month said the United States is providing too much help to Ukraine, up from 12 percent in May and 7 percent in March. Thirty-two percent of Republicans said too much was being done for Ukraine, compared with 11 percent of Democrats. About 46 percent of Republicans said the United States was doing about the right amount or not enough, while 65 percent of Democrats agreed.“Unfortunately, what we’re seeing I think is Russian far-right propaganda talking points filtering into the U.S. political environment, and knowingly or unknowingly we see U.S. politicians basically using talking points that will do nothing but bring a big smile to Putin’s face,” said Evelyn Farkas, executive director of the McCain Institute for International Leadership and a former Pentagon official under President Barack Obama..css-1v2n82w{max-width:600px;width:calc(100% – 40px);margin-top:20px;margin-bottom:25px;height:auto;margin-left:auto;margin-right:auto;font-family:nyt-franklin;color:var(–color-content-secondary,#363636);}@media only screen and (max-width:480px){.css-1v2n82w{margin-left:20px;margin-right:20px;}}@media only screen and (min-width:1024px){.css-1v2n82w{width:600px;}}.css-161d8zr{width:40px;margin-bottom:18px;text-align:left;margin-left:0;color:var(–color-content-primary,#121212);border:1px solid var(–color-content-primary,#121212);}@media only screen and (max-width:480px){.css-161d8zr{width:30px;margin-bottom:15px;}}.css-tjtq43{line-height:25px;}@media only screen and (max-width:480px){.css-tjtq43{line-height:24px;}}.css-x1k33h{font-family:nyt-cheltenham;font-size:19px;font-weight:700;line-height:25px;}.css-1hvpcve{font-size:17px;font-weight:300;line-height:25px;}.css-1hvpcve em{font-style:italic;}.css-1hvpcve strong{font-weight:bold;}.css-1hvpcve a{font-weight:500;color:var(–color-content-secondary,#363636);}.css-1c013uz{margin-top:18px;margin-bottom:22px;}@media only screen and (max-width:480px){.css-1c013uz{font-size:14px;margin-top:15px;margin-bottom:20px;}}.css-1c013uz a{color:var(–color-signal-editorial,#326891);-webkit-text-decoration:underline;text-decoration:underline;font-weight:500;font-size:16px;}@media only screen and (max-width:480px){.css-1c013uz a{font-size:13px;}}.css-1c013uz a:hover{-webkit-text-decoration:none;text-decoration:none;}How Times reporters cover politics. We rely on our journalists to be independent observers. So while Times staff members may vote, they are not allowed to endorse or campaign for candidates or political causes. This includes participating in marches or rallies in support of a movement or giving money to, or raising money for, any political candidate or election cause.Learn more about our process.White House officials said privately that they had nothing to do with the swift retreat of the Congressional Progressive Caucus that proposed negotiations with Russia, but were reassured by the quick reversal. The increasing Republican skepticism, however, means that a midterm election victory by the opposition would raise questions about future aid packages.Even before Mr. McCarthy’s statement promising to resist a “blank check” for Ukraine, 57 Republicans in the House and 11 in the Senate voted against $40 billion in assistance in May and more of the party’s candidates on the campaign trail have expressed resistance to more money for Ukraine.But other Republicans have been steadfast backers of Ukraine, most notably Senator Mitch McConnell of Kentucky, the party’s leader in the upper chamber who pointedly rebuffed Mr. McCarthy’s no-blank-check comment.“We have enjoyed and continue to enjoy terrific bipartisan support for our approach to Ukraine and the kinds of security assistance that we’re providing, and we’re going to need that support going forward,” Mr. Kirby said. “The president’s not worried about that.”Biden allies said Democrats had proved to be self-correcting when it came to the progressives’ letter but urged the president to explain his strategy to the public and the stakes involved.“This is a difficult and dangerous situation that requires staying power and to some extent sacrifice on the part of the United States,” said Representative Tom Malinowski, Democrat of New Jersey and a staunch supporter of Ukraine aid. “It’s always important for the president to be making the case to Congress and to the American people that this is in the national interest and the right thing to do.”Still, as the war grinds on, in Europe it feels more and more like an American venture. American contributions of war matériel and money exceed those of all the other allies put together, and American strategy choices are dominant, aided by the brutality of the Russian war, the bravery of the Ukrainian government and military and Mr. Putin’s clear disinterest in negotiations, let alone a Russian withdrawal.In these European countries, there is quiet worry that Ukraine will do so well as to drive Mr. Putin into a desperate gamble of escalation — a worry not unknown in Washington, too. For the Germans and the French, a settlement along the lines that existed before the Feb. 24 invasion would seem quite sufficient — a defeat for Mr. Putin but not a rout. The fear is that too big a loss of face for Russia would push Mr. Putin into using nuclear weapons in some fashion, or a “dirty bomb” conventional explosive with radioactive material that could be blamed on the Ukrainians in order to justify a significant escalation.That is a major reason that Germany and France seem to be carefully calibrating the sophistication of the weapons they send to Ukraine, as Mr. Biden does too. Europe has pretty much run out of Soviet-era weapons to send to Ukraine, and its own stocks, intended for its own defense, are also low, a function of the post-Cold War “peace benefit” that caused military spending to plummet all over the continent, a trend only slowly being reversed in earnest.There is a significant disparity between the flood of arms supplied by the United States, Britain, and Poland and what the rest of Europe is providing, which has raised the persistent question of whether some countries are slow-walking supplies to bring about a shorter war and quicker negotiations.Taken as a whole, the West is providing Ukraine “just enough” weaponry “to survive, not enough to regain territory,” said Ulrich Speck, a German foreign policy analyst. “The idea seems to be that Russia should not win, but also not lose.“What countries send and how slowly they send it tells us a lot about the war aims of Western countries,” he added. “And it becomes even more important now because Ukraine is more dependent on Western arms.”For all of that, Eric S. Edelman, a counselor at the Center for Strategic and Budgetary Assessments in Washington and a former under secretary of defense under President George W. Bush, said the Europeans have stuck together more firmly than many had expected.“Public support remains quite strong,” Mr. Edelman said. “And although there will definitely be negative economic effects — particularly in Germany — the Euros have taken a lot of steps to buffer themselves” by storing energy and diversifying supplies. “Putin,” he said, “may find that he has made a bad bet.”Still, he added, “notwithstanding this generally bullish assessment, one should never underestimate the challenges of coalition maintenance and alliance management.”Peter Baker More

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      How Saudi Arabia’s Blowup With Biden Threatens Democrats in 2022

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      Democrats and administration officials are furious at the Saudis’ move to cut oil production, seeing it as an attempt to meddle in a U.S. election.Only three months have gone by since President Biden gave Crown Prince Mohammed bin Salman, the de facto ruler of Saudi Arabia, the fist bump heard ’round the world.But relations between the United States and the world’s top swing producer have deteriorated markedly since then, precipitated by OPEC’s decision this month to reduce oil production. The Saudis argued that the falling price of crude oil, which had dropped to $80 a barrel, mandated the cut; U.S. officials disagreed.But coming at the height of a U.S. election season characterized by public anger over high gas prices, it looked to many Democrats like a partisan move. The U.S. had asked for a one-month delay, to no avail.The Biden administration was “blindsided by this,” said Steven Cook, an analyst at the Council on Foreign Relations. “And now the Saudis are dug in.”National security officials insist they weren’t blindsided. But other officials, including John Podesta, the climate czar, were furious. Many saw the move as a Saudi attempt to meddle in a U.S. election, and they viewed the Saudis as reneging on a mutual understanding the two countries had reached after the war in Ukraine took Russian oil off the market. The president said there would be “consequences,” and John Kirby, a spokesman for the National Security Council, said the U.S. would be “re-evaluating our relationship with Saudi Arabia in light of these actions.”Jared Kushner’s front-row seat at an investor meeting in Riyadh this week will probably only heighten Democrats’ suspicions, as will the kingdom’s recent agreement to strengthen energy ties with Beijing. Notably, no U.S. officials were invited to the Riyadh meeting.“The White House has taken this very personally, and for understandable reasons,” said Bruce Riedel, a senior fellow at the Brookings Institution. He speculated that OPEC might not ultimately cut production by the full two million barrels a day that it said it would; member countries often fail to meet their production quotas anyway.“More important,” Riedel added, “is the symbolism of the president trying to reset U.S.-Saudi relations and the Saudis essentially repudiating him and humiliating him.”Riedel urged the White House to take action before the midterms, possibly by revoking maintenance contracts for Saudi warplanes or by withdrawing the U.S. troops stationed in the kingdom.Many Democrats in Congress, and some Republicans, would support a rebuke to Riyadh. Several leaders of key committees have already announced that they will refuse to approve future arms sales without a change in Saudi attitudes.The State of the 2022 Midterm ElectionsBoth parties are making their final pitches ahead of the Nov. 8 election.Florida Governor’s Debate: Gov. Ron DeSantis and Charlie Crist, his Democratic challenger,  had a rowdy exchange on Oct. 24. Here are the main takeaways from their debate.Strategy Change: In the final stretch before the elections, some Democrats are pushing for a new message that acknowledges the economic uncertainty troubling the electorate.Last Dance?: As she races to raise money to hand on to her embattled House majority, Speaker Nancy Pelosi is in no mood to contemplate a Democratic defeat, much less her legacy.Secretary of State Races: Facing G.O.P. candidates who spread lies about the 2020 election, Democrats are outspending them 57-to-1 on TV ads for their secretary of state candidates. It still may not be enough.But Representative Tom Malinowski, a Democrat from New Jersey who is on the Armed Services Committee, said he “found it a bit puzzling that the administration was pushing this on Congress at a time when Congress was out of session.”The most likely vehicle for congressional action would be an amendment attached to the annual defense authorization bill, which has passed the House but not the Senate. Saudi Arabia, Malinowski said, had become a “partisan actor” in U.S. politics, and it was time to move to punitive actions.“Any move like this would send a very powerful signal to the kingdom that the U.S. is unhappy with the crown prince,” Riedel said, noting that the young Saudi leader “has many enemies inside the kingdom.”None of that has happened yet, however; U.S. officials viewed some of the ideas kicking around Congress as impractical, and thought it was important to consult with both parties.Senator Chris Murphy, Democrat of Connecticut, said he appreciated that the administration had not acted rashly to punish Saudi Arabia, arguing in favor of a deeper reassessment of U.S. involvement in the Middle East. And if the Saudi decision accelerated U.S. moves toward alternate sources of energy, he added, it might turn out to be a “blessing in disguise.”As for fears that Saudi Arabia might turn to other security partners, such as China, Murphy and others noted the kingdom’s utter reliance on U.S. support for its military. The United States, he said, needed to get out of a situation in which “Saudi Arabia benefits from this deep security relationship, but then knifes us in the back.”A crown prince who ‘much preferred’ TrumpFor the Biden administration and the kingdom, the mutual animosity appears to be personal.The Wall Street Journal reported this week that the crown prince “mocks President Biden in private, making fun of the 79-year-old’s gaffes and questioning his mental acuity” and that he “much preferred former President Donald Trump.”For his part, Biden vowed during the 2020 campaign to make the Saudi government a “pariah” — making his fist bump with the crown prince all the more striking.But the clash with Democrats has also been long in the making. As the U.S. diplomatic cables published by WikiLeaks showed, Saudi rulers were enraged by the Obama administration’s diplomatic dealings with Iran. And they were further outraged by President Barack Obama’s decision to nudge aside Hosni Mubarak, the Egyptian dictator, during the Arab Spring.Trump made it a priority to patch up U.S. ties with the Gulf. He visited Riyadh on his first presidential visit abroad — a trip defined by the famous photo of him touching a glowing orb at a counterterrorism conference.And he endorsed a Saudi-led blockade of Qatar, a tiny, iconoclastic Gulf state that was a cheerleader for the Arab Spring uprisings in 2011. A close Trump friend who became the chairman of his inaugural committee, the investor Thomas J. Barrack Jr., is currently on trial on charges that he acted as an undisclosed agent for the United Arab Emirates.The Saudis have underscored their diplomatic hostility to Biden by throwing money at Trump and his family. Kushner’s investment fund has taken on at least $2 billion in Saudi cash. And this weekend, Trump is hosting a Saudi-backed rival to the P.G.A. Tour at his golf course in Balmedie, Scotland — his second such event in recent months.Now, the Gulf nations’ budding relationship with President Vladimir Putin of Russia has become another flash point.During the Cold War, the United States leaned on Saudi Arabia to ramp up oil production, undermining high-cost Soviet producers in an effort to bankrupt the Kremlin. But in recent years, the Gulf countries have developed cordial ties with Russia.This photograph made available by Russian state media shows President Vladimir Putin meeting with Sheikh Mohammed bin Zayed Al Nahyan, the president of the United Arab Emirates, in St. Petersburg.Pavel Bednyakov/SputnikThis month, for instance, Sheikh Mohammed bin Zayed Al Nahyan, the president of the United Arab Emirates, made a high-profile visit to Moscow to meet with Putin. Foreign policy analysts saw the move as yet another slap in the face to Biden, who has backed the Ukrainian government with weapons, intelligence and heavy diplomatic support in the face of Russia’s invasion.Part of Biden’s problem in the Gulf, Cook said, is “wanting to have it both ways.”Biden began his term by embracing Obama’s nuclear deal with Iran, which Trump exited and the Saudis vigorously oppose. He also reversed Trump’s policies on the bloody Saudi-led war in Yemen, blasted the Saudi government for killing the journalist Jamal Khashoggi, and talked up the shift away from hydrocarbon-based energy — only to backtrack this summer as gasoline prices squeezed U.S. consumers.“The kingdom and its neighbors view the appeasement of Iran as the foundational error preventing cooperation on many other issues,” said Rob Greenway, a former senior Middle East official on Trump’s National Security Council.In the long run, though, Saudi Arabia might have less leverage than its leaders assume. High oil prices are a momentary annoyance for Americans, but the future of energy is an existential one for Riyadh — and the United States has become a significant producer over the last decade. As Riedel put it, “We don’t need them the way we used to need them.”Malinowski, noting that Saudi Arabia had snapped to attention in 2020 after Trump threatened to pull out U.S. troops, said, “It’s time to act like a superpower, not a supplicant.”What to readOne of this year’s most anticipated debates is tonight in Pennsylvania, where Lt. Gov. John Fetterman will face Mehmet Oz in their pivotal Senate race. Here’s what we’re watching for, and you can follow live updates here.As Republican candidates make crime a central midterm issue, they are running ads against Black candidates that appeal to white fears and resentments — and they are brushing off criticism of such tactics with unabashed defiance, Jonathan Weisman writes.Many political observers trying to forecast the midterms note that as gas prices go up and down, the public’s mood tends to follow. Why, our Upshot team asks, does the cost of fuel have such power over us?The governor’s race in New York, where Gov. Kathy Hochul was expected to coast to victory, is now too close for Democrats’ comfort, Nicholas Fandos reports.Thank you for reading On Politics, and for being a subscriber to The New York Times. — BlakeRead past editions of the newsletter here.If you’re enjoying what you’re reading, please consider recommending it to others. They can sign up here. Browse all of our subscriber-only newsletters here.Have feedback? Ideas for coverage? We’d love to hear from you. Email us at onpolitics@nytimes.com. More

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      Putin Is Onto Us

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      As the Russian Army continues to falter in Ukraine, the world is worrying that Vladimir Putin could use a tactical nuclear weapon. Maybe — but for now, I think Putin is assembling a different weapon. It’s an oil and gas bomb that he’s fusing right before our eyes and with our inadvertent help — and he could easily detonate it this winter.If he does, it could send prices of home heating oil and gasoline into the stratosphere. The political fallout, Putin surely hopes, will divide the Western alliance and prompt many countries — including ours, where both MAGA Republicans and progressives are expressing concerns about the spiraling cost of the Ukraine conflict — to seek a dirty deal with the man in the Kremlin, pronto.In short: Putin is now fighting a ground war to break through Ukraine’s lines and a two-front energy war to break Ukraine’s will and that of its allies. He’s trying to smash Ukraine’s electricity system to ensure a long, cold winter there while putting himself in position (in ways that I’ll explain) to drive up energy costs for all of Ukraine’s allies. And because we — America and the West — do not have an energy strategy in place to dampen the impact of Putin’s energy bomb, this is a frightening prospect.When it comes to energy, we want five things at once that are incompatible — and Putin is onto us:1. We want to decarbonize our economy as fast as we can to mitigate the very real dangers of climate change.2. We want the cheapest possible gasoline and heating oil prices so we can drive our cars as fast and as much as we want — and never have to put on a sweater indoors or do anything to conserve energy.3. We want to tell the petrodictators in Iran, Venezuela and Saudi Arabia to take a hike.4. We want to be able to treat U.S. oil and gas companies as pariahs and dinosaurs that should pump us out of this current oil crisis and then go off in the woods and die and let solar and wind take over.5. Oh, and we don’t want any new oil and gas pipelines or wind and solar transmission lines to spoil our backyards.I understand why people want all five — now. I want all five! But they involve trade-offs, which too few of us want to acknowledge or debate. In an energy war like the one we’re in now, you need to be clear about your goals and priorities. As a country, and as a Western alliance, we have no ladder of priorities on energy, just competing aspirations and magical thinking that we can have it all.If we persist in that, we are going to be in for a world of hurt if Putin drops the energy bomb that I think he’s assembling for Christmas. Here’s what I think is his strategy: It starts with getting the United States to draw down its Strategic Petroleum Reserve. It is a huge stock of crude oil stored in giant caverns that we can draw on in an emergency to offset any cutoff in our domestic production or imports. Last Wednesday, President Biden announced the release of 15 million more barrels from the reserve in December, completing a plan he laid out earlier to release a total of 180 million barrels in an effort to keep gasoline prices at the pump as low as possible — in advance of the midterm elections. (He didn’t say the last part. He didn’t need to.)According to a report in The Washington Post, the reserve contained “405.1 million barrels as of Oct. 14. That’s about 57 percent of its maximum authorized storage capacity of 714 million barrels.”I sympathize with the president. People were really hurting from $5- and $6-a-gallon gasoline. But using the reserve — which was designed to cushion us in the face of a sudden shut-off in domestic or global production — to shave a dime or a quarter off a gallon of gasoline before elections is a dicey business, even if the president has a plan for refilling it in the coming months.Putin wants America to use up as much of its Strategic Petroleum Reserve cushion now — just like the way the Germans gave up on nuclear energy and he got them addicted to Russia’s cheap natural gas. Then, when Russian gas was cut off because of the Ukraine war, German homes and factories had to frantically cut back and scramble for more expensive alternatives.Next, Putin is watching the European Union gear up for a ban on seaborne imports of crude oil from Russia, starting Dec. 5. This embargo — along with Germany and Poland’s move to stop pipeline imports — should cover roughly 90 percent of the European Union’s current oil imports from Russia.As a recent report from the Center for Strategic and International Studies in Washington, D.C., noted, “Crucially, the sanctions also ban E.U. companies from providing shipping insurance, brokering services or financing for oil exports from Russia to third countries.”The U.S. Treasury and European Union believe that without that insurance, the number of customers for Russian oil will shrink dramatically, so they are telling the Russians that they can get the insurance for their oil tankers from the few Western insurance companies that dominate the industry only if they lower the price of their crude oil exports to a level set by the Europeans and the United States.My sources in the oil industry tell me they seriously doubt this Western price fixing will work. Russia’s OPEC Plus partner Saudi Arabia is certainly not interested in seeing such a buyers’ price-fixing precedent set. Moreover, international oil trading is full of shady characters — does the name Marc Rich ring a bell? — who thrive on market distortions. Oil tankers carry transponders that track their locations. But tankers engaged in shady activities will turn their transponders off and reappear days after they’ve made a ship-to-ship transfer or will transfer their cargo into storage tanks somewhere in Asia for re-export, in effect laundering their Russian oil. Oil in just one very large tanker can be worth roughly $250 million, so the incentives are enormous.Now add one more dodgy player to the mix: China. It has all kinds of long-term, fixed-price contracts to import liquefied natural gas from the Middle East at roughly $100 a barrel of oil equivalent. But because President Xi Jinping’s crazy approach to containing Covid — in recent months some 300 million citizens have been under full or partial lockdown — China’s economy has slowed considerably, as has its gas consumption. As a result, an oil industry source tells me, China has been taking some of the L.N.G. sold to it on those fixed-price contracts for domestic use and reselling it to Europe and other gas-starved countries for $300 a barrel of oil equivalent.Now that Xi has locked in his third term as general secretary of the Communist Party, many expect that he will ease up on his lockdowns. If China goes back to anything near its normal gas consumption and stops re-exporting its excess, the global gas market will become even more scarily tight.Last, as I noted, Putin is trying to destroy Ukraine’s ability to generate electricity. Today more than one million Ukrainians are without power, and as one Ukrainian lawmaker tweeted last week, “Total darkness and cold are coming.”So add all of this up and then suppose, come December, Putin announces he is halting all Russian oil and gas exports for 30 or 60 days to countries supporting Ukraine, rather than submit to the European Union’s fixing of his oil price. He could afford that for a short while. That would be Putin’s energy bomb and Christmas present to the West. In this tight market, oil could go to $200 a barrel, with a commensurate rise in the price of natural gas. We’re talking $10 to $12 a gallon at the pump in the United States.The beauty for Putin of an energy bomb is that unlike setting off a nuclear bomb — which would unite the whole world against him — setting off an oil price bomb would divide the West from Ukraine.Obviously, I am just guessing that this is what Putin is up to, and if the world goes into recession, it could take energy prices down with it. But we would be wise to have a real counterstrategy in place, especially because, while some in Europe have managed to stock up on natural gas for this winter, rebuilding those stocks for 2023 without Russian gas and with China returning to normal could be very costly.If Biden wants America to be the arsenal of democracy to protect us and our democratic allies — and not leave us begging Saudi Arabia, Russia, Venezuela or Iran to produce more oil and gas — we need a robust energy arsenal as much as a military one. Because we are in an energy war! Biden needs to make a major speech, making clear that for the foreseeable future, we need more of every kind of energy we have. American oil and gas investors need to know that as long as they produce in the cleanest way possible, invest in carbon capture and ensure that any new pipelines they build will be compatible with transporting hydrogen — probably the best clean fuel coming down the road in the next decade — they have a welcome place in America’s energy future, alongside the solar, wind, hydro and other clean energy producers that Biden has heroically boosted through his climate legislation.I know. This is not ideal. This is not where I hoped we would be in 2022. But this is where we are, and anything else really is magical thinking — and the one person who will not be fooled by it is Vladimir Putin.The Times is committed to publishing a diversity of letters to the editor. We’d like to hear what you think about this or any of our articles. Here are some tips. And here’s our email: letters@nytimes.com.Follow The New York Times Opinion section on Facebook, Twitter (@NYTopinion) and Instagram. More

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      Why the Price of Gas Has Such Power Over Us

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      Ask Americans their outlook on the country — its future, its economy, its president — and their mood has risen and fallen in surveys this year in striking sync with the price of gas. Gas prices go up, and fear that the country is on the wrong track often does, too. Gas prices go down, and so does unhappiness with the president.It’s of course not the case that fuel prices alone dictate the optimism (or surliness) of the nation. But these patterns suggest that gas, distinct from other things we buy, wields real power over how Americans think about their personal circumstances, the wider economy and even the state of the nation. Yes, this year has been marked by economic uncertainty, Supreme Court shock waves, Jan. 6 revelations and enduring pandemic divides. But lurking in the background of it all has been the whipsawing price of gas.And it is, by the way, now trending down again with two weeks to go to the election.Gas Prices Spike; Confidence DipsConfidence in the economy and in the direction of the country fell as gas prices rose earlier this year. Then those patterns reversed as gas prices dropped. More

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      The Three Blunders of Joe Biden

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      If the Democrats end up losing both the House and the Senate, an outcome that looks more likely than it did a month ago, there will be nothing particularly shocking about the result. The incumbent president’s party almost always suffers losses in the midterms, the Democrats entered 2022 with thin majorities and a not-that-favorable Senate map, and the Western world is dealing with a war-driven energy crunch that’s generally rough on incumbent parties, both liberal and conservative. (Just ask poor Liz Truss.)But as an exculpating narrative for the Biden administration, this goes only so far. Some races will inevitably be settled on the margins, control of the Senate may be as well, and on the margins there’s always something a president could have done differently to yield a better political result.President Biden’s case is no exception: The burdens of the midterms have been heavier for Democrats than they needed to be because of three notable failures, three specific courses that his White House set.The first fateful course began, as Matthew Continetti noted recently in The Washington Free Beacon, in the initial days of the administration, when Biden made critical decisions on energy and immigration that his party’s activists demanded: for environmentalists, a moratorium on new oil-and-gas leases on public lands and, for immigration advocates, a partial rollback of key Trump administration border policies.What followed, in both arenas, was a crisis: first a surge of migration to the southern border, then the surge in gas prices driven by Vladimir Putin’s invasion of Ukraine.There is endless debate about how much the initial Biden policy shifts contributed to the twin crises; a reasonable bet is that his immigration moves did help inspire the migration surge, while his oil-lease policy will affect the price of gas in 2024 but didn’t change much in the current crunch.But crucially, both policy shifts framed these crises, however unintentionally, as things the Biden administration sought — more illegal immigration and higher gas prices, just what liberals always want! And then instead of a dramatic attempt at reframing, prioritizing domestic energy and border enforcement, the Biden White House fiddled with optics and looked for temporary fixes: handing Kamala Harris the border portfolio, turning the dials on the strategic petroleum reserve and generally confirming the public’s existing bias that if you want a party to take immigration enforcement and oil production seriously, you should vote Republican.The second key failure also belongs to the administration’s early days. In February 2021, when congressional Democrats were preparing a $1.9 trillion stimulus, a group of Republican senators counteroffered with a roughly $600 billion proposal. Flush with overconfidence, the White House spurned the offer and pushed three times as much money into the economy on a party-line vote.What followed was what a few dissenting center-left economists, led by Larry Summers, had predicted: the worst acceleration of inflation in decades, almost certainly exacerbated by the sheer scale of the relief bill. Whereas had Biden taken the Republicans up on their proposal or even simply counteroffered and begun negotiations, he could have started his administration off on the bipartisan footing his campaign had promised while‌ hedging against the inflationary dangers that ultimately arrived.The third failure is likewise a failure to hedge and triangulate, but this time on culture rather than economic policy. Part of Biden’s appeal as a candidate was his longstanding record as a social moderate — an old-school, center-left Catholic rather than a zealous progressive.His presidency has offered multiple opportunities to actually inhabit the moderate persona. On transgender issues, for instance, the increasing qualms of European countries about puberty blockers offered potential cover for Biden to call for greater caution around the use of medical interventions for gender-dysphoric teenagers. Instead, his White House has chosen to effectively deny that any real debate exists, positioning the administration to the left of Sweden.Then there is the Dobbs decision, whose unpopularity turned abortion into a likely political winner for Democrats — provided, that is, that they could cast themselves as moderates and Republicans as zealots.Biden could have led that effort, presenting positions he himself held in the past — support for Roe v. Wade but also for late-term restrictions and the Hyde Amendment — as the natural national consensus, against the pro-life absolutism of first-trimester bans. Instead, he’s receded and left Democratic candidates carrying the activist line that absolutely no restrictions are permissible, an unpopular position perfectly designed to squander the party’s post-Roe advantage.The question in the last case, and to some extent with all these issues, is whether a more moderate or triangulating Biden could have held his coalition together.But this question too often becomes an excuse for taking polarization and 50-50 politics for granted. A strong president, by definition, should be able to pull his party toward the center when politics demands it. So if Biden feels he can’t do that, it suggests that he’s internalized his own weakness and accepted in advance what probably awaits the Democrats next month: defeat.The Times is committed to publishing a diversity of letters to the editor. We’d like to hear what you think about this or any of our articles. Here are some tips. And here’s our email: letters@nytimes.com.Follow The New York Times Opinion section on Facebook, Twitter (@NYTOpinion) and Instagram. More

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      Will Gas Prices Doom Democracy?

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      Will the price of gasoline — a price that has very little to do with which party controls the government — nonetheless determine the outcome of the midterm elections, and quite possibly the fate of American democracy?I wish that were a silly question, but it isn’t. This year there has been a strong correlation between the price of gasoline and political polls.Earlier this year, when gas reached an average of $5 a gallon, everything seemed to point to a Republican blowout. By mid-September, with gas prices down almost $1.50, the election looked much more competitive. And some apparent recent deterioration in Democrats’ prospects coincided with an upward tick in prices in late September and early October. (Prices are now falling again.)Now, this correlation might be spurious. Other things have been going on, notably a partisan Supreme Court’s overthrow of Roe v. Wade. And political scientists who have studied the issue find that normally the effect of gas prices on political outcomes is fairly weak.But we are arguably in a special situation right now. Americans have been shocked by a sudden surge in inflation, which had been quiescent for decades, and the price of gasoline — displayed on huge signs every few blocks — is a potent reminder of our economic difficulties.What we know for sure is that politicians are harping on gas prices. Republicans don’t talk about the core personal consumption expenditure deflator, they declare that “gas was only $2 a gallon when Trump was in office!” The Biden administration talked a lot about the long slide in prices and is trying to get out the word that this slide has resumed.So this seems like a good time to make three important points about gasoline prices.First, the most important determinant of prices at the pump is the world price of crude oil, over which the United States has little influence. And I do mean “world price”: Prices in Europe and the United States normally move almost perfectly in tandem.Crude prices and hence gas prices were unusually low during Donald Trump’s last year in office, not because of anything he did, but because Covid had the world economy flat on its back, greatly reducing oil demand. Crude temporarily shot up after Russia invaded Ukraine, out of fears that Russian oil exports would be greatly reduced; it fell again as it became clear that a lot of Russian oil would continue to find its way to world markets.Second, smaller fluctuations are usually driven by technical issues at the refineries that turn crude oil into gasoline and other products. The mini-surge in gas prices that began in September (and now seems to be over) was caused by shutdowns of several refineries for maintenance and a fire at one refinery in Ohio. Again, this has nothing to do with policy.What about accusations that energy companies are deliberately holding production back to raise prices and profits?We shouldn’t dismiss this possibility out of hand. Some readers may recall the California electricity crisis of 2000-2001. When some analysts, myself included, argued that the facts suggested that market manipulation was playing a large role, we faced considerable ridicule. But it turned out that markets were, in fact, being manipulated; we have the receipts.As far as I can tell, however, the refining issues that led to recent price increases were genuine. I don’t think it’s wrong to stay suspicious, and keep energy companies on notice against pulling an Enron. But it’s probably not a current problem.Finally, gas isn’t expensive compared with the fairly recent past.One way I like to look at this is to look at the ratio of the price of gasoline to the average worker’s hourly earnings. Right now this ratio is considerably lower than it was in the early 2010s. Gasoline prices did plunge in 2014 — yes, under Barack Obama, not Trump. But this reflected a surge in fracking, which actually did increase U.S. oil production enough to have a significant effect on world markets. Unfortunately the fracking boom turned out to be a bubble that eventually burned up more than $300 billion in investors’ money.So gas prices probably won’t go back to the levels of the late 2010s, not because the Biden administration is hostile to oil production, but because those low prices depended on investors’ delusions about fracking’s profitability. Taking a longer view, as I said, gas isn’t actually expensive at this point.Furthermore, experts believe that with some troubled refineries coming back online, gas prices will fall substantially over the next few weeks.So what does this tell us about the success or failure of Biden administration policy? Very little. Biden’s jawboning of refiners over their margins might be having some effect; so might his release of extra oil from the Strategic Petroleum Reserve. Overall, however, it’s hard to think of a worse metric for judging a president and his party than a price determined mainly by events abroad and technical production issues here at home, a price that isn’t even high compared with, say, a decade ago.Yet gas prices may sway a crucial election, a fact that is both ludicrous and terrifying.The Times is committed to publishing a diversity of letters to the editor. We’d like to hear what you think about this or any of our articles. Here are some tips. And here’s our email: letters@nytimes.com.Follow The New York Times Opinion section on Facebook, Twitter (@NYTopinion) and Instagram. More

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      Biden Expands Effort to Lower Gas Prices and Secure Energy Independence

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      Depleting emergency oil reserves spurs criticism that the White House is trying to lower gas prices with midterm election politics in mind.The president rejected the notion that the move to release more oil was politically motivated by the upcoming midterm elections.Haiyun Jiang/The New York TimesWASHINGTON — President Biden expanded his efforts on Wednesday to blunt the pain of rising gas prices and reduce America’s exposure to global energy markets, which have become more volatile because of provocative actions by Russia and Saudi Arabia.The administration announced $2.8 billion in grants to expand domestic manufacturing of batteries for electric vehicles and the electrical grid, one day after officials said that the United States would release millions of barrels of oil from the Strategic Petroleum Reserve and that Mr. Biden would consider additional withdrawals this winter.The moves highlight how energy security is now at the center of the Biden administration’s economic agenda, which has been derailed by soaring inflation and Russia’s war in Ukraine. Those concerns come at a perilous political moment, with midterm elections that will determine dynamics in Washington less than three weeks away.Mr. Biden’s decision to order the release of 15 million additional barrels of oil from the Strategic Petroleum Reserve is designed to address the immediate worry of rising gas prices, which was exacerbated further by Saudi Arabia’s recent decision, in concert with Russia, to cut oil production. In total, 180 million barrels of oil have been released since Mr. Biden authorized the use of the reserve in March.The Biden administration is prepared to dip further into its emergency supplies this winter, despite concerns that depleting the reserve could put the nation’s energy security at risk.“We’re calling it a ready and release plan,” Mr. Biden said on Wednesday. “This allows us to move quickly to prevent oil price spikes and respond to international events.”Mr. Biden has described the releases as a way to blunt the impact of Russia’s war in Ukraine while domestic energy producers ramp up production. There are about 400 million barrels remaining in the stockpile, which has the capacity to hold about 700 million barrels.The Biden PresidencyWith midterm elections approaching, here’s where President Biden stands.Storyteller in Chief: President Biden has been unable to break himself of the habit of spinning embellished narratives to weave a political identity.Diplomatic Limits: OPEC’s decision to curb oil production has exposed the failure of President Biden’s fist-bump diplomacy with the crown prince of Saudi Arabia.Defending Democracy: Mr. Biden’s drive to buttress democracy at home and abroad has taken on more urgency by the persistent power of China, Russia and former President Donald J. Trump.Questions About 2024: Mr. Biden has said he plans to run for a second term, but at 79, his age has become an uncomfortable issue.In remarks at the White House, Mr. Biden rebutted the notion that his administration had placed curbs on domestic oil production. Instead, he called on companies to expand production and said even if demand for oil slows in future years, they would be able to sell it back to the federal government to refill the Strategic Petroleum Reserve when oil prices decline to around $70 a barrel.The president also accused oil companies of profiteering and warned them not to gouge prices as Americans are grappling with inflation.“When the cost of oil comes down, we should see the price of the gas station at the pump come down as well,” he said. “My message to the American energy companies is, you should not be using your profits to buy back stock or for dividends. Not now. Not while a war is raging.”Separately on Wednesday, the White House announced that the Energy Department is awarding $2.8 billion of grants that were created as part of the infrastructure legislation passed earlier this year..css-1v2n82w{max-width:600px;width:calc(100% – 40px);margin-top:20px;margin-bottom:25px;height:auto;margin-left:auto;margin-right:auto;font-family:nyt-franklin;color:var(–color-content-secondary,#363636);}@media only screen and (max-width:480px){.css-1v2n82w{margin-left:20px;margin-right:20px;}}@media only screen and (min-width:1024px){.css-1v2n82w{width:600px;}}.css-161d8zr{width:40px;margin-bottom:18px;text-align:left;margin-left:0;color:var(–color-content-primary,#121212);border:1px solid var(–color-content-primary,#121212);}@media only screen and (max-width:480px){.css-161d8zr{width:30px;margin-bottom:15px;}}.css-tjtq43{line-height:25px;}@media only screen and (max-width:480px){.css-tjtq43{line-height:24px;}}.css-x1k33h{font-family:nyt-cheltenham;font-size:19px;font-weight:700;line-height:25px;}.css-1hvpcve{font-size:17px;font-weight:300;line-height:25px;}.css-1hvpcve em{font-style:italic;}.css-1hvpcve strong{font-weight:bold;}.css-1hvpcve a{font-weight:500;color:var(–color-content-secondary,#363636);}.css-1c013uz{margin-top:18px;margin-bottom:22px;}@media only screen and (max-width:480px){.css-1c013uz{font-size:14px;margin-top:15px;margin-bottom:20px;}}.css-1c013uz a{color:var(–color-signal-editorial,#326891);-webkit-text-decoration:underline;text-decoration:underline;font-weight:500;font-size:16px;}@media only screen and (max-width:480px){.css-1c013uz a{font-size:13px;}}.css-1c013uz a:hover{-webkit-text-decoration:none;text-decoration:none;}How Times reporters cover politics. We rely on our journalists to be independent observers. So while Times staff members may vote, they are not allowed to endorse or campaign for candidates or political causes. This includes participating in marches or rallies in support of a movement or giving money to, or raising money for, any political candidate or election cause.Learn more about our process.The money will go to 20 companies in 12 states and will be used for projects related to the production of lithium, graphite and nickel that is used in batteries that power electric vehicles. One grant recipient, Talon Nickel, said it would use the $114 million it had been awarded to help set up a processing facility for battery materials in Mercer County, North Dakota.The North Dakota facility will process ore that the company plans to mine in Minnesota, one link in the first fully domestic supply chain for battery-grade nickel that Talon is building out in partnership with Tesla.While the Biden administration has stressed the importance of building up some domestic manufacturing of electric vehicle batteries, which is now heavily reliant on China, administration officials have also acknowledged the pollution risks in permitting new mines and processing facilities in the United States.Talon’s plan to build an underground mine to extract nickel from a water-rich area of northern Minnesota drew concerns from some in the area, including Ojibwe tribes who gather wild rice nearby.Todd Malan, the company’s chief external affairs officer, said the decision to locate the processing facility at an industrial site in North Dakota, instead of near the company’s proposed mine in Minnesota, was a “direct response” to those concerns. He said the company would create a “cemented containment facility” that would neutralize and contain waste from ore processing.“We hope that this is seen as a step toward addressing their concerns while still producing the necessary materials for the U.S. electric vehicle battery supply chain,” he said.Gene Berdichevsky, the co-founder and chief executive of Sila, a maker of battery materials, said the $100 million grant the company received would allow it to expand the size of a factory in Moses Lake, Wash.Sila’s technology substitutes silicon for graphite in electric vehicle batteries, making them smaller and lighter and reducing the need for materials imported from China. Mercedes-Benz, Sila’s first announced customer, plans to deploy the technology in sport utility vehicles that will be available for sale around the middle of the decade.During a manufacturing event at the White House with recipients of the grants, Mr. Biden described the race to make batteries in the United States as part of a broader economic contest with China. He noted that 75 percent of battery manufacturing is done in China and that the country controls nearly half of the global production of the contents of batteries.“China’s battery technology is not more innovative than anyone else,” Mr. Biden said. “By undercutting U.S. manufacturers with their unfair subsidies and trade practices, China seized a significant portion of the market. Today we’re stepping up, really, to take it back.”The grant funds, which could take years to yield results, are part of the Biden administration’s longer-term strategy to transition away from cars with combustion engines and reach a goal of making half of all new vehicles sold electric by 2030.But the use of the strategic oil reserves has fueled criticism that Mr. Biden is putting the nation’s near-term energy security at risk for political purposes.“The Strategic Petroleum Reserve was built for a national energy crisis — not for a Democrat election crisis,” said Senator John Barrasso, Republican of Wyoming. “Joe Biden is draining our emergency oil supply to a 40-year low.”Mr. Barrasso, the top Republican on the Senate Energy and Natural Resources Committee, said the president’s “dismal approval rating is not a justifiable reason to continue to raid our nation’s oil reserves.”On Wednesday, Mr. Biden denied that he was releasing more oil with the midterm elections in mind.“It’s not politically motivated at all,” Mr. Biden said, explaining that he has been working for months to lower gas prices. “It’s motivated to make sure that I continue to push on what I’ve been pushing.”Jack Ewing More