free webpage hit counter

Biden Continues Gas Price Blame Game by Keeping His Contract Ban

President Joe Biden’s message to gasoline retailers over the July 4 holiday weekend was every bit as confrontational and counterproductive. The manager of the presidential Twitter account posted the following message on Saturday:

“My message to the companies that run gas stations and set prices at the pump is simple: This is a time of war and global danger,” the @POTUS account said. “Reduce the price you’re charging at the pump to reflect the cost you’re paying for the product. And do it now. “

Thus, we see that the President is “working like the devil” to lower gas prices by publishing a threatening tweet. Coincidentally, as crude oil prices moderated somewhat over the past two weeks, gas prices at the pump also moderated. AAA reports that the national average price for a gallon of regular was $4.81 as of Sunday, down 21 cents from the all-time high of $5.02 reached on June 14.

Biden’s self-serving tweet drew a response from AmazonAMZN
Jeff Bezos, founder and owner of The Washington Post, criticized the administration for its ongoing blame-shifting efforts. “Oh. “Inflation is too important an issue for the White House to continue making statements like this,” Bezos wrote on his own Twitter account. “This is either straightforward misdirection or a profound misunderstanding of fundamental market dynamics.” A good case can be made that both factors described by Bezos are at work here: Biden has deliberately filled his administration with anti-oil and gas activists who have no real understanding of the oil markets and are desperately trying to shift blame for more gas. Prices for more than a year now.

The presidential tweet was a fairly transparent attempt by the White House to claim some credit for the 21-cent gas price cut, though experts may argue that the drop is due to a variety of market factors, chief among them speculation that recessionary markets are killing demand. That speculation was offset late in the week by supply disruptions due to strikes in France and Norway and the war in Libya, and a growing realization that OPEC+ has essentially lost its ability to influence the market with more exports.

Meanwhile, the administration’s senior political appointees used the week to take further steps to curb the domestic oil and gas industry, as the White House tries to seize credit for price volatility that has spiraled beyond its control. In addition to the EPA’s announced intention (which I wrote about on Friday) to declare the Permian Basin in ozone attainment, Biden’s Interior Department, led by Secretary Deb Holland, waited a day past the deadline mandated by legislation. Release its draft 5-year plan for offshore leasing for oil and gas exploration in federal waters.

The plan, released as a standard Washington DC document dump on the Friday evening of the holiday weekend, is a predictably restrictive and transparent effort to afford Sec. Holland with the rationale necessary to continue the de facto ban on offshore contracting that he and the president have imposed since the day Biden took office.

Reuters reports that the project is considering holding “0 to 11” auctions in the Gulf of Mexico over the next 5 years, and possibly, one in Alaska’s Cook Inlet. It has no plans to hold any auctions in Alaska’s North Slope waters or offshore waters of the Atlantic or Pacific oceans. Crucially, Holland, a lifelong oil and gas opponent, said the DOI would have no auction, continuing a trend he had established over the past 17 months. Echoing Biden’s own remarks that measures like this, designed to disrupt the domestic oil industry, are integral parts of renewables’ “incredible transition,” he indicated that public comments on the plan will rule the day.

“From day one, President Biden and I have made clear our commitment to transitioning to a clean energy economy,” Holland said in a statement. “Today, we present the American people with an opportunity to weigh in and provide input on the future of offshore oil and gas leasing. Now is the time for the public to weigh in on our future.”

Holland’s message to “the American people” in that statement was mainly a message to the anti-oil and gas activist community. The Administrative Procedures Act requires DOI to consider public comments before moving forward with projects like this. Over the past 30 years, the environmentalist community has perfected the practice of flooding DOI with hundreds of thousands of identical, cut-and-paste statements of opposition to every such project. That will certainly happen again, but the industry will mount its traditional token effort on its own behalf, managed by some trade associations and NGOs. Holland then tallies up the amount and uses it to support her decision to move forward, most likely without any contract sales.

If we’ve learned nothing else about his administration over the past 17 months, it’s that Mr. We’ve certainly learned that Biden intends to keep his 2020 campaign promises.

Unlike US refinery operators, gasoline station operators are not price setters but price takers. The prices they charge to consumers are determined based on a combination of market factors, taxes and regulatory measures. There’s no denying that every regulatory action the Biden administration has taken up to this point has had an upward impact on prices at the pump.

This week’s actions by EPA and DOI are just two recent examples. This is the Biden plan.

Leave a Reply

Your email address will not be published.

Previous post How to get the best gaming keyboard under $100
Next post How to get out of jail