At Politico Ben Lefebvre and Zack Colman argue that higher prices for oil and gasoline are not President Biden’s fault:
The biggest element of Biden’s climate agenda, the Build Back Better bill, has been left for dead in the Senate. Meanwhile, U.S. greenhouse gas emissions spiked 6.2 percent last year, the climate research firm Rhodium Group noted, a surge that reflects how little the infrastructure underpinning the nation’s economy has moved away from carbon.
And even though the Biden administration has paused new oil and gas lease sales on federal land, the Interior Department processed more oil and gas drilling permits during Biden’s first year in office than three of the four years of the Trump administration. The U.S. became the world’s largest exporter of liquefied natural gas this year, and domestic oil production is forecast to reach about 12 million barrels a day, putting it close to where it was before the Covid-era collapse in fuel demand in 2020.
Still, Republicans are leaning on the European turmoil to swipe at Democrats’ green designs. Texas Attorney General Ken Paxton on Monday cited the European conflict as a reason the state is leading a challenge to an Environmental Protection Agency proposal from December to strengthen vehicle emission standards, which would benefit electric cars and trucks.
“At a time when American gas prices are skyrocketing at the pump, and the Russia-Ukraine conflict shows again the absolute need for energy independence, Biden chooses to go to war against fossil fuels,†Paxton said in the press release announcing the lawsuit.
Here’s the graph they produce of U. S. oil production:
To my eye that looks as though production did, indeed, crash during the lockdowns of 2020 and is recovering slowly but has not returned to its 2019 levels. No?
Summarizing their argument:
- We’re producing a lot of oil.
- There’s a war on.
Leaving aside a “the buck stops here” argument or the reality that presidents get blamed for what happens on their watch whether their actions produced the situation or not, let me ask some basic questions. Why does Hawai’i, amazingly, import more gasoline and oil from Russia than any other state? Why does it use oil to generate electricity at all? Because
- It doesn’t have domestic supplies of oil.
- The Jones Act
If you’re not familiar with it the Jones Act regulates the prices that can be charged for shipping between U. S. ports. In practice it ensures that it’s cheaper to ship oil from Russia to Hawai’i than it is from Long Beach.
Why doesn’t Hawai’i use solar or wind? About 30% of Hawai’i’s electricity comes from solar, wind, hydro, and geothermal (mostly solar and wind). Why doesn’t Hawai’i use more geothermal? Because the people are on Oahu, the geothermal is on the Big Island, and Hawai’i’s sole geothermal plant is offline due to an eruption. Besides getting the power from where it is to where it’s needed is expensive and impractical. The state doesn’t actually have much choice. Using imported oil or LNG are just about its only options for baseline power. Relaxing the Jones Act might help.
Using more tidal power could probably be accomplished. That would, however, be unsightly and Hawai’i is highly dependent on tourism.
The state plans to be using 100% “renewables” to generate electricity by 2045. We’ll see.
The EIA, and a host of private industry newsletters, have scads of this type of data.
Note also, as we sit in front of our computers there are 6 LNG permits held up by the Biden Admin. The LNG is to be shipped to Europe. A letter to the Administration:
“House Energy and Commerce Committee Republican Leader Cathy McMorris Rodgers (R-WA) and Energy Subcommittee Republican Leader Fred Upton (R-MI) sent letters to Secretary of Energy Jennifer Granholm and to the Commissioners of the Federal Energy Regulatory Commission (FERC) urging them to immediately approve delayed permits for natural gas pipelines and liquefied natural gas (LNG) export facilities in order to strengthen America’s energy security and weaken Russia’s ability to harm our European allies.
To counter Russia’s weaponization of gas supplies, Rodgers and Upton call on the Department of Energy and FERC to focus on their energy security missions and unleash American energy.
LETTER EXCERPT: “Unfortunately, it is now clear that the Administration’s anti-American energy polices have weakened our energy security by contributing to the U.S. and Europe’s growing dependency on Russian oil and natural gas. Since President Biden took office, the Administration has revoked the permit for the Keystone XL pipeline, imposed a moratorium on fossil energy development on Federal lands and waters, and stifled U.S. energy production through bureaucratic delays and regulatory uncertainty. As a result, the prices of crude oil and many energy commodities have risen to seven-year highs, U.S. inflation is surging, and Russia has strengthened its grip on European energy supplies and global markets.”
Germany has huge shale supplies. But Germany already shot their feet off pandering to greenies. Uncle Joe is determined to do the same.
I also saw that Jen “Liar” Paski was peddling the notion that Ukraine was the cause of rising energy costs even though much (most) of the increase preceded the invasion. I guess they think US citizens are stupid.
As noted, Biden admin has been approving more drilling on public lands than had Trump. They had planned to auction more leases this month but a ruling by a GOP judge challenged the value of the carbon penalty so the auction had to be delayed while it was recalculated and litigated again.
https://www.cnbc.com/2022/02/24/biden-administration-pausing-new-oil-and-gas-leases-amid-legal-battle-.html
Steve
Yes, Baghdad steve, that’s why prices were, pre-Ukraine, and are now so high: Biden’s all out effort to increase supply.
You may want to write a paper about Biden’s robust supply efforts and the odd increase in energy prices. Submit it to the Nobel Committee as “Supply, Demand and Prices Revisited: A New Economic Paradigm.” I will be there to congratulate you on your prize.
IMO the biggest problem with the article’s argument is that they don’t provide an explanation that covers what’s happening, i.e. prices were rising BEFORE the Russians invaded Ukraine. The war is a contributing factor not an explanation.
Drew, remember, President Biden has only been in office for 14 months, 25% of his term!