JPMorgan Chase CEO Jamie Dimon rebuked the Biden administration’s energy policies this week, condemning the push away from oil and gas.
Speaking with CNBC, Dimon responded to the energy crisis facing Europe this winter. In his response, Dimon said the Biden administration’s approach to energy is “completely backwards.”
“Well, I think we’re getting energy completely wrong,” he said. “Ever since [the Russia-Ukraine] war started, you know that Europe is going to have a problem. And that it was pretty predictable that [Russian President Vladimir] Putin was going to cut off some gas and some oil, and oil price would go up.
“By the way, for the climate folks here, it’s made the climate worse because people have this bad assumption that higher oil prices and gas prices reduce consumption, reduce CO2. No,” Dimon explained. “Poor nations — India, China, Indonesia, Philippines, Vietnam — are turning back on coal plants, as are rich nations called Germany, Netherlands, France.
“We have it completely backwards,” the CEO declared. “In my view, America should have been pumping oil and gas.”
So what does this meaning for wintertime energy markets? According to Dimon, reduced oil and gas production will create “longer-term problems,” including increasing dependence on coal for energy needs.
“These are very, very serious things, which I think are likely to push the U.S. and the world — I mean, Europe is already in recession — and they’re likely to put the U.S. in some kind of recession 6 to 9 months from now,” Dimon said.
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