Trying to limit the political damage of skyrocketing gas prices, the Biden administration ousted Energy Secretary Jennifer Granholm on Sunday. If she had gone to the month, it would have been good for her.
Appearing on CNN’s “State of the Union”, Ms. Granholm said, “We need to increase production so that everyday citizens in America don’t feel the pain they are feeling right now.”
The context of the discussion was President Biden’s upcoming visit to the Gulf Cooperation Council, where he would ask the Saudis to increase oil production. Ms. Granholm got the general principle right: The answer to higher prices is an increase in supply. What he did wrong was locating the solution in Middle Eastern oil fields some 7,500 miles away.
He didn’t have much choice. Since taking office, Mr. Biden has worked hard to make US fossil-fuel production more expensive, so green energy options become more attractive. He succeeded, and the result is record prices.
On his first day in office, Mr. Biden Cancelled New leases at the Keystone XL Pipeline and Alaska’s Arctic National Wildlife Refuge stopped. a week later, he banned new oil and gas leases on federal land and waters, and in June he close exploration On existing leases in ANWR. In October, he increased regulatory burden On the construction of pipelines and other infrastructure. this february he limited lease In the National Petroleum Reserve of Alaska. At every turn, Team Biden has worked to limit and reduce domestic oil and gas production.
Nearly a year after a federal judge barred the White House from enforcing its stay on leases in federal lands and waters, the administration announced in April Finally Offered 144,400 Acres For exploration – this installment of leases was originally earmarked for only 20% of the acreage. The administration increased federal royalties by 50%, increasing the cost on American consumers. It designated regulatory authorities hostile to fossil fuels and issued climate disclosure rules, making lenders hesitant to provide capital.
Team Biden got what it wanted: Daily US oil production fell from 12.29 million barrels in 2019 to an estimated 11.85 million in 2022, well after demand from the pandemic.
Mr. Biden Blame
Vladimir Putin, but prices rose significantly before Russia invaded Ukraine. In January 2021, the average price for regular gasoline was $2.33 per gallon. As of February 2022, it was up to $3.52. As of May, the average price was $4.44; So 56% of that price increase happened before the attack.
After doing everything in his power to limit US supplies, Mr Biden is now threatening a windfall profit tax, even though oil and gas production saw only a 4.7% net profit margin last year. Compare with
27%. Yet Mr. Biden won’t forfeit the tech company’s profits.
The president now proposes a three-month break from the 18.4-per-gallon federal gasoline tax. But this will increase demand and while doing nothing to boost production, the deficit will increase.
If Mr Biden was serious about slashing fuel prices, he would follow the advice of President Clinton’s Treasury Secretary Larry Summers, who on Sunday called for “a more energy-supply approach that emphasizes freeing up fossil fuels”. was suggested. It is meant to undo all of Biden’s earlier decisions, which pushed up oil and gas prices. It is important to start now. It took a year and a half of bad actions to get here; It will take time to increase the supply and thus create downward pressure on the prices.
To start, Mr. Biden must deter the Environmental Protection Agency’s attack on small US refineries, which produce about 30% of America’s gasoline and diesel. Long-standing EPA regulations require them to mix renewable fuels into their product or purchase special credits in the market, but most cannot mix in ethanol because it is too corrosive to be carried through pipelines. The EPA has long tackled this problem by regularly discounting these refiners if no credit is available, as provided for by law.
Earlier this month, the EPA announced that it was essentially eliminating exemptions and requiring refiners to pay billions to the industry, by retroactively denying exemptions in 2016. Even the EPA recognizes that consumers must cover these costs. Industry leaders fear that some refineries will not be able to operate under the new regime and will instead shut down, further reducing supplies of gasoline and diesel.
In pursuit of climate goals, Mr. Biden’s policies have raised oil and gas costs and reduced supplies. The result is gasoline and diesel prices are high at a time when inflation is already pushing up the price of everything else. Mr Biden got what he wanted, and it is making life difficult for ordinary Americans. Because of that, Democrats will have hell to pay in November.
Mr. Rowe helped organize the political-action committee American Crossroads and is the author of “The Triumph of William McKinley” (Simon & Schuster, 2015).
Wonder land: Like other world leaders who bowed out in lockdown, Joe Biden and the Democratic Party are now realizing just how complicated the private economy really is, and how easy it is to ruin it. Images: AP/Shutterstock/Bloomberg/Zuma Press Composite: Mark Kelly
opinion | Biden got the energy market he wanted
Trying to limit the political damage of skyrocketing gas prices, the Biden administration ousted Energy Secretary Jennifer Granholm on Sunday. If she had gone to the month, it would have been good for her.
Appearing on CNN’s “State of the Union”, Ms. Granholm said, “We need to increase production so that everyday citizens in America don’t feel the pain they are feeling right now.”
The context of the discussion was President Biden’s upcoming visit to the Gulf Cooperation Council, where he would ask the Saudis to increase oil production. Ms. Granholm got the general principle right: The answer to higher prices is an increase in supply. What he did wrong was locating the solution in Middle Eastern oil fields some 7,500 miles away.
He didn’t have much choice. Since taking office, Mr. Biden has worked hard to make US fossil-fuel production more expensive, so green energy options become more attractive. He succeeded, and the result is record prices.
On his first day in office, Mr. Biden Cancelled New leases at the Keystone XL Pipeline and Alaska’s Arctic National Wildlife Refuge stopped. a week later, he banned new oil and gas leases on federal land and waters, and in June he close exploration On existing leases in ANWR. In October, he increased regulatory burden On the construction of pipelines and other infrastructure. this february he limited lease In the National Petroleum Reserve of Alaska. At every turn, Team Biden has worked to limit and reduce domestic oil and gas production.
Nearly a year after a federal judge barred the White House from enforcing its stay on leases in federal lands and waters, the administration announced in April Finally Offered 144,400 Acres For exploration – this installment of leases was originally earmarked for only 20% of the acreage. The administration increased federal royalties by 50%, increasing the cost on American consumers. It designated regulatory authorities hostile to fossil fuels and issued climate disclosure rules, making lenders hesitant to provide capital.
Team Biden got what it wanted: Daily US oil production fell from 12.29 million barrels in 2019 to an estimated 11.85 million in 2022, well after demand from the pandemic.
Mr. Biden Blame
Vladimir Putin, but prices rose significantly before Russia invaded Ukraine. In January 2021, the average price for regular gasoline was $2.33 per gallon. As of February 2022, it was up to $3.52. As of May, the average price was $4.44; So 56% of that price increase happened before the attack.
After doing everything in his power to limit US supplies, Mr Biden is now threatening a windfall profit tax, even though oil and gas production saw only a 4.7% net profit margin last year. Compare with
Microsoft‘s
39% net margin,
Facebook‘s
33%, Google’s 30% and
Apple‘s
27%. Yet Mr. Biden won’t forfeit the tech company’s profits.
The president now proposes a three-month break from the 18.4-per-gallon federal gasoline tax. But this will increase demand and while doing nothing to boost production, the deficit will increase.
If Mr Biden was serious about slashing fuel prices, he would follow the advice of President Clinton’s Treasury Secretary Larry Summers, who on Sunday called for “a more energy-supply approach that emphasizes freeing up fossil fuels”. was suggested. It is meant to undo all of Biden’s earlier decisions, which pushed up oil and gas prices. It is important to start now. It took a year and a half of bad actions to get here; It will take time to increase the supply and thus create downward pressure on the prices.
To start, Mr. Biden must deter the Environmental Protection Agency’s attack on small US refineries, which produce about 30% of America’s gasoline and diesel. Long-standing EPA regulations require them to mix renewable fuels into their product or purchase special credits in the market, but most cannot mix in ethanol because it is too corrosive to be carried through pipelines. The EPA has long tackled this problem by regularly discounting these refiners if no credit is available, as provided for by law.
Earlier this month, the EPA announced that it was essentially eliminating exemptions and requiring refiners to pay billions to the industry, by retroactively denying exemptions in 2016. Even the EPA recognizes that consumers must cover these costs. Industry leaders fear that some refineries will not be able to operate under the new regime and will instead shut down, further reducing supplies of gasoline and diesel.
In pursuit of climate goals, Mr. Biden’s policies have raised oil and gas costs and reduced supplies. The result is gasoline and diesel prices are high at a time when inflation is already pushing up the price of everything else. Mr Biden got what he wanted, and it is making life difficult for ordinary Americans. Because of that, Democrats will have hell to pay in November.
Mr. Rowe helped organize the political-action committee American Crossroads and is the author of “The Triumph of William McKinley” (Simon & Schuster, 2015).
Wonder land: Like other world leaders who bowed out in lockdown, Joe Biden and the Democratic Party are now realizing just how complicated the private economy really is, and how easy it is to ruin it. Images: AP/Shutterstock/Bloomberg/Zuma Press Composite: Mark Kelly
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