If you can't figure this out now, you are the problem
1. Canceling drilling leases and limiting domestic production
Since taking office, Biden has taken too many steps to count to limit domestic production. These include halting federal permits for oil and gas drilling and leasing shortly after taking office and blocking drilling in a major oil-rich Alaskan region.
To be clear, these decisions will mostly affect future production. But that does still significantly affect gas prices because companies factor in their expectations about the future into the decisions they make today.
“Some say that new leases … would have taken time and would not yet be online, but even so, there is evidence that expectations of increased future supply has a beneficial impact on current prices and expectations of future supply drying up has a negative impact on current prices,” the Competitive Enterprise Institute’s Ben Lieberman said.
“At a day-to-day level, I am hearing from drillers that they are having a very hard time getting all the approvals they need from [the Environmenatl Protection Agency] and other agencies in order to produce on existing wells, and of course, new federal leasing has come to a halt,” Lieberman added.
It’s just basic economics that when the government throttles future supply in an industry, that will lead to higher prices both now and in the future. Biden was warned by many critics at the time that this would happen, but he proceeded anyway.
2. Choking regulations that impose big costs and lead to higher prices
Speaking of basic economics, it’s well established that when businesses’ costs rise, that puts upward pressure on the prices they charge consumers. The oil and gas industry is no exception.
And unfortunately, the Biden administration has both proposed and implemented a wide array of regulations on the energy sector, inflicting billions in direct financial costs and incalculable indirect compliance costs — plus further harming expectations for the future.
“The regulatory chokehold imposed by the Biden administration on oil production in place of a Green New Deal has drastically raised gasoline prices, thereby hurting lower-income people the most,” said conservative economist Vance Ginn, who served in the Trump administration.
“This is yet another example of the high cost of big-government environmentalism when the better approach is to remove government barriers so that free markets can better let people adapt to changes in the environment at a much lower cost,” Ginn concluded.
3. Anti-energy rhetoric that discourages investment
Rhetoric matters. While words don’t literally do anything to change gas prices, the signals coming from policymakers absolutely do affect the long-term investment decisions businesses make.
And even as a presidential candidate, Biden sent very negative messages about what his leadership would mean for the gas industry.
In just one example, as Americans for Tax Reform pointed out, Biden said during a campaign stop: “We are going to get rid of fossil fuels. … We’re going to phase out fossil fuels.” Then, upon taking office, the president followed these words with actions such as canceling the Keystone XL pipeline, blocking leases, restricting imports, and pursuing regulations.
In general, Biden’s open hostility toward the oil and gas industry has almost certainly curbed investment into production that otherwise would’ve occurred.
14 Comments:
Illegitimate government destroying America and the world.
Non Compos Mentis
of unsound mind
Biden and the dems combined with the leftists that he cares about the most, are f'ing up the country big time. But they are too deaf, dumb, and blind to realize it.
Heaven help us.
Barry promised pooty he would be more flexible, they halted our production to help pooty pay for his war, meanwhile back at the cuckoo biden ranch they are sending ( COUGH COUGH ) aid to Ukraine, which is nothing more then a kickback .
* The above statement "These include halting federal permits for oil and gas drilling and leasing shortly after taking office and blocking drilling in a major oil-rich Alaskan region."
* This claim has been debunked by fact checkers at BOTH Rueters and Wapo.
* Joe Biden has no fault in this economy, as this is a PUTIN price hike.
* Putin is has all the power, and Joe Biden has none. (except for some sniffing kids power)
Consider how JB's economy wrecking policies have been bad enough. Now he wants to intervene directly for his favorite green industries, making things worse. Our U.S.A. was built on a laissez faire (attitude to life) market free economy. That means individuals and corporations freely purchase and sell goods and services with minimal government i,e, (govern men) interference.
It's Putin's fault for higher gas prices. LMFAO!!!!
The week before Biden was inaugerated gas was $2.37 a gallon. The week BEFORE Putin invaded Ukraine gas was $3.53 a gallon. That's a $1.16 increase. Someone should tell Joe.
https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=emm_epmr_pte_nus_dpg&f=m
It's really a shame some people still believe in fairy tales as they are written, debunked, and sliced no matter which way. This administration has a stranglehold on its permits and regulations. If you can't see, then perhaps you can't hear either, then you are part of this mess. Period!
https://biologicaldiversity.org/w/news/press-releases/new-data-biden-slays-trumps-first-year-drilling-permitting-by-34-2022-01-21/
Dopey Joe PROMISED he would END Fossil Fuels in this country and that is what he is working hard to do.
The oil companies have said yes, the feds give them the preliminary permits but then after that there are a million other hoops they have to jump through and that is where the lying Democrats put up all the roadblocks to stop all exploration and drilling. This is just more of the Democrats' blame-game bullsh!t. Democrats are all liars. Every last one of them. They're evil.
@Stack47. We went from GOOD to BAD from day one. He has added so many regulations, it is not even profitable for the private sector period. Think what you want, but you are dead A$$ wrong!
MADDOG10, don't waste your time with DemHack47. That dude is a loony-tunes radical leftist Dim-Dem. Incapable of rational thought, totally consumed by hatred for America and devoted to Trump-bashing, day in and day out, 24/7. DemHack47 otherwise has no life. He says "Dopey Joe" Bi-dumb be da man wit da plan!
@KAL035, I have to agree with you 100%. LMAO!
Good Gentlemen;
� positive truths have been hijacked by hateful dogma,� Steve Hilton said. �In service of its radically destructive mission to replace family, faith and culture with allegiance to the new ideology.�
Post a Comment
<< Home