Economist Stephen Moore has noted a trend toward higher gas costs. If the United States returned to Trump's energy policy, we would produce 2 million barrels more per day. "Joe Biden is doing nothing but pushing a crazy green agenda that will make prices even higher."
U.S. customers may expect to pay more for their energy bills after OPEC+ declared this week that they would be drastically reducing their oil production.
Mayra Flores, a Republican congresswoman from Texas, indicated that the Saudis planned to reduce oil production by 500,000 barrels per day. The national economy and petrol prices will feel the effects of this. This highlights the significance of achieving and maintaining energy autonomy.
Already, energy costs in the United States are far higher than they were when Biden started office. Last summer, national gas prices surpassed $5 per gallon, a new record. After then, prices fell, in part because Biden used the SPR to offset demand. Biden will have to be more judicious in his use of these reserves going forward if he is to forestall more price hikes; they are already at their lowest level since 1984.
The invasion of Ukraine by Russia has also caused havoc in the oil markets around the world. The battle was supposed to be over by now, but it still seems to be going on with no end in sight.
Even while Americans are feeling the pinch of increasing gas costs, Biden's apologists have pointed to the profits made by oil firms as evidence.
According to Robert Reich, a professor at Berkeley and former Secretary of Labor, "while you were paying through the nose at the gas pump," Big Oil firms used the cover of inflation to jack up prices and line their wallets. "In 2022, BP had its 'lowest production cost in 16 years," the CEO recently claimed.
The Biden administration has been criticized for contributing to increased energy prices, namely for discouraging domestic oil and gas exploration and pipeline expansion. Democrats are unlikely to embrace the Lower Energy Costs Act, which was just enacted by House Republicans to boost domestic drilling in an effort to lower prices.
Power the Future's leader, Daniel Turner, has called for the rapid passage of H.R. 1 and for President Biden to set politics aside and unleash the power of American energy. Otherwise, we'll have to get used to $4 gas and a whole host of other unfavorable conditions.
A 26-cent increase in energy costs has been predicted as a result of the OPEC+ decision. Some analysts see the move by OPEC+ as a portent of things to come.
"Given the transition the world is undergoing as it embraces 'clean and green energy,' OPEC+ knows all too well that its still highly valued 'liquid gold' will at some point begin to lose its shine," said Quincy Krosby, Chief Global Strategist at LPL Financial. Until then, "managing the price of crude will be used more directly and aggressively than was anticipated," as the countries comprising OPEC+ prepare for the future by spending trillions of dollars upgrading infrastructure and shifting focus away from crude oil as their primary source of income.
Recently, Biden has also come under fire for reducing U.S. oil stockpiles to what some see as dangerously low levels. This week, Republicans in the House Oversight Committee wrote a letter to Energy Secretary Jennifer Granholm making this same point.
The letter argues that the Biden administration "exposed the U.S. to future market volatility and increased supply dependence on adversarial nations by gutting vital fuel storage to lower short-term prices rather than supporting an all-of-the-above energy approach to unleash American energy potential."
