It’s typical of how government works: it creates a problem and then creates a bigger problem when it tries to fix it. Case in point – gas prices. America is struggling through a self-inflicted energy crisis. We have an abundance of energy; the crisis is how Team Biden is handling it. Upon taking office President Biden followed through on a promise candidate Biden made during the campaign; he cancelled the Keystone XL pipeline and curtailed new oil drilling leases on federal lands. These actions sent a clear message to the fossil fuel industry and to the markets: you don’t have an ally in the White House. The resulting spike in fuel prices was predictable. Crude oil was $40 a barrel the day Biden was elected; a month ago it was more than triple that amount. Biden can blame Vladimir Putin and the oil companies for the price hike, but it is the result of his idiotic policies.
A Houston-based oil executive recently told the NY Post: “Why would I tell my CEO to spend billions of dollars on new oil production if I think Joe Biden thinks we should not even exist, or deserve to make profits or are killing the planet…...” There’s the crust of the problem. The AOC-wing of the Democratic Party hates free market capitalism and private profit. They believe all money should belong to the government.
Biden’s solution to high fuel prices is to tap into the Strategic Petroleum Reserve and flood the market with a million barrels a day for six months. This has been tried before and it doesn’t work. America uses roughly 21 million barrels daily. The SPR serves as a buffer against any unforeseen emergencies such as if the U.S. were to go to war with Russia over Putin’s invasion of Ukraine. That would cause a major disruption in the flow of oil, which would have a deleterious effect on the world economy. During the Trump years America was energy independent, pumping out over 13.5 million barrels a day. How was that possible? President Trump removed all of the onerous regulations that were put into place by Obama/Biden that were stifling production.
Some states are considering cutting state sales taxes on gasoline to blunt motorists’ pain at the pump. Here in New York, as part of the new state budget, Governor Kathy Hochul will cut state gas taxes by 16 cents a gallon from June 1 until the end of the year. She is urging counties to do the same.
Instead of maligning the oil companies for taking risks with their own capital and providing thousands of high-paying jobs while fueling our economy, Biden should remove the regulatory shackles and open up federal lands for more drilling. Maybe then we can get back to the output we enjoyed under President Trump, when the price for a gallon of regular unleaded gasoline was $1.89. According to Triple A, as of April 22,the national average is $4.12 a gallon. But don’t hold your breath waiting for that to happen. This Administration is beholden to the environmental Left and its advocates in Congress who believe fossil fuels are destroying the planet. They want to reduce consumption and how better to do that than by keeping fuel prices inflated and America dependent on our enemies for our energy needs.