Last week, former Shell Oil CEO John Hofmeister said that President Biden’s climate policies are to blame for rising gas prices. “As long as we see this hostile administration, we’re going to have a problem with prices.”
Since Bidens’ policies target domestic oil output, former President Trump predicted that gas prices would rise as a result.
Biden has stated that he would prioritize renewable energies instead and that the far-left Green New Deal is “a crucial framework for meeting the climate challenges we face.”
First picture price of Gas in Detroit April 2020 under Trump. Second picture price of Gas in Detroit March 2021 under Biden. When you kill Keystone XL pipeline by executive order day 1 of your presidency to pander to fringe radical environmentalist groups this is what happens. pic.twitter.com/HGMEX9KxDT
— Richard Baird (@ScottsBaird) March 9, 2021
Given that OPEC has just increased oil supply, global oil prices are likely to fall in the short term.
However, Hofmeister told Fox Business host Maria Bartiromo that Biden’s climate policies offset the global oil market’s impact by limiting domestic energy output.
“The reason gasoline is coming back up is we’ve been in a shutdown period for many of the refineries, and so that puts a squeeze on what’s available in terms of final product,” Hofmeister said.
“But there’s something else that’s going on that’s more subtle. What that is, is that the industry, the producers, are practicing serious capital discipline, and they’re not roaring back to produce more oil. And also, they’re getting squeezed by the administration,” Hofmeister continued.
Biden’s policies, according to Hofmeister, have built an atmosphere of fear, which has pushed up oil prices.
“So the ban on leasing—the prohibition on new leases from the Biden administration—that’s going to create a psychology in the industry of, ‘There’s going to be less available,’ and the psychology drives the pricing as well,’” Hofmeister said.
What has Biden admin done?
In comparison to last year, gas prices have increased by almost 40 cents per gallon. According to AAA, gas prices have risen by more than 30 cents per gallon in the last month.
According to energy analyst Patricia Schouker, the increase can be due in part to energy markets recovering from their collapse last year, caused by the pandemic.
“U.S. oil and gas stocks, by far the worst performers of last year, are standing out as the best in 2021,” Schouker said. “A booming rally in oil markets has pushed crude prices to their highest levels since near the start of the coronavirus pandemic, powered by production curbs and recovering demand.”
On the other hand, Biden has taken bold measures to keep his pledge to concentrate America’s energy future on renewables rather than oil and gas.
According to the Associated Press, one of his first actions as president was to sign an executive order suspending “new oil and gas leasing and fracking licenses for U.S. lands and waters.”
Gov. Greg Abbott (R-Tex.) retaliated against Biden’s executive order by issuing his own, instructing state officials to challenge Biden’s directive.
Since oil production accounts for a large portion of Texas’ economy, this is a deeply personal problem for the Lone Star State.