In the midst of higher and higher gas prices, and a failed reserve release plan from the Biden administration to temper them – some people are becoming angrier over the price of gasoline.
This last Christmas saw record prices for gasoline, with all of last year being worse than 2020. And despite a Biden release of 50 million barrels from reserve, his plan saw only average declines of around 2 cents per gallon, at mpst 12 cents per gallon – yet still unable to sustain or significantly break down to lower levels experienced just a year prior.
The Biden administration has been no friend to the US oil industry. It has prohibited the construction of a pipeline, reduced permitting of exploration on federal lands, and increased regulation of oil and natural gas production, and pleaded with OPEC to increase production.
The Wall Street Journal reported, that Biden’s climate envoy, John Kerry, “has been pressuring banks and financial institutions to reduce their commitments to U.S. oil and gas companies and join the Net-Zero Banking Alliance, which would hobble the ability of oil and gas companies to increase production.”
These actions were designed to reduce the price of imported petroleum, while increasing the cost of producing domestic petroleum. Yet in reality, they just kept increasing the price of gas, while holding back American companies from competing efficiently.
Ironically, the most vocal members of Congress asking for lower gas prices, seem to be from states like Massachusetts, Rhode Island, New Hampshire, Vermont, Connecticut and Delaware.
Senators have been working overtime to urge Biden to “consider all tools available at your disposal to lower U.S. gasoline prices,” according to a letter signed by nine senators all Democrats and authored by Ed Markey (D-Mass) and Jack Reed (D-RI).
Whereas other members of the Democratic party seem to be towing the same line, and a bit out of sync with the rest of the citizenry.
Senator Bernie Sanders (D-Vt) stated on Nov. 26: “We must stop the profiteering and monopolistic behavior of giant oil companies.”
Elizabeth Warren (D-Mass) stated in a news release she “is turning up the heat on big energy companies who are gaming the system by raising natural gas prices for consumers to boost profits and line the pockets of executives and investors.” She wants the Department of Justice to investigate.
The six states in the Northeast area produce no oil, no natural gas, no coal. They must import 100%, according to the Energy Information Administration. In 2019 (the most recent data from EIA), the six states consumed a total of 3,231 trillion British thermal units of energy and 2,309 trillion Btu (71%) came from fossil fuels.
These states must purchase their fossil fuel energy from outside the area, which could be a foreign country (possibly Canada, Russia, OPEC, etc.) or maybe another state (Pennsylvania, Oklahoma, Texas). When elected officials rely on others to provide safe, reliable and affordable energy to their constituents and there is a problem, it is easier for politicians to blame “greedy” oil producers than take responsibility for their failure.
There seems to be a disconnect from reality, where certain actions are not being considered by this administration to have real consequence, and then the “boogey man” of US oil is blamed. Would it be so bad if we had a more friendly Government to our own domestic oil industry?
