Biden’s Next Fuel Plan Will Make Things Catastrophically Worse

OPINION: This article contains commentary which may reflect the author's opinion

There has been a war between the Biden administration and American fossil fuel industries since the very beginning. As a result, Biden canceled the Keystone XL pipeline and the thousands of jobs it would have supported on his first day in office.

Furthermore, Biden has overseen a sharp decline in the number of new drilling permits issued under his administration.

Biden and his climate-obsessed cronies, such as the ironically slick John Kerry, are clearly more and more intent on begging dictators for energy production rather than continuing the energy revolution and energy independence the country proudly witnessed under Donald Trump.

Because of that, Americans already grappling with historically high gas prices may see them rise to catastrophic levels, causing ripple effects throughout the economy. It’s imperative to remember that gasoline isn’t an end product like pork or soybeans. When the price of it rises, it can increase the price of everything else as well since it is how most goods get from producers to consumers.

Biden seems to have decided that fossil fuels are not so bad after all. Biden’s administration is implementing this program at exactly the wrong time for U.S. consumers.

In a CNN report published Thursday, a Biden administration official said the nation will purchase tens of millions of barrels of crude oil in the fall to fill its Strategic Petroleum Reserves.

Most Americans are aware that the last time SPR made headlines was when Biden was doing exactly the opposite, releasing bids for oil in major releases intended to manipulate the oil market to ease the pain of drivers filling up at the pump.

A typical Biden plan went awry at filling stations across the country in real-time, as the insatiable American economy devoured the oil releases without registering a blip in retail price at the pump.

Democratic propagandists in the mainstream media portrayed it as a noble act by the government to help its subjects, but it really represented a knee-jerk reaction of a statist philosophy, pretending to be able to manipulate a national market with state power. The report even claimed that the reserve had been ‘drained’ by the war in Ukraine instead of Biden’s own actions. There is no end to this propaganda.

With the Biden administration realizing that the whole purpose of having a Strategic Petroleum Reserve is to have a Strategic Petroleum Reserve, it will be entering the market in the autumn as a buyer, putting it in direct competition with its own people.

The American government will then try to buy enough oil to refill the mammoth caverns that store the SPR during a summer when the average American has just had to deal with record gas prices to get to work and chauffeur the kids.

Is there any reason to believe the American consumer will win out? A commodity like gasoline is always difficult to predict months in advance. With a hostile atmosphere in Eastern Europe, belligerent China in the East, and a strange mixture of malice and stupidity at the White House and in Congress, it’s practically impossible to make predictions.

Furthermore, the need for the SPR to be replenished was, in large part, caused by Biden’s incompetence.

However, it’s not at all difficult to imagine that prices will rise even further if Biden and his handlers decide that oil matters.

As Kiplinger reports:

…there are the political factors that have contributed to higher gas prices.

President Joe Biden came into office vowing to transition the U.S. economy away from fossil fuels, with a goal of halving emissions from energy use by 2030 and making the U.S. carbon-neutral by 2050. The administration has continued to approve permits to drill for oil on federal lands – angering many environmentalists – but it has also tried to cut back on where energy companies can drill for oil in the future.

Plus, it famously nixed the disputed Keystone XL pipeline, which would have carried more than 800,000 barrels per day of Canadian crude to U.S. refineries. That oil can still cross the border, but it’ll have to come by rail, which is more expensive than moving by pipeline.

In short, the administration has been less friendly to oil production and transport than its predecessor, at a time when markets are undersupplied. How much that adds to the price you pay at the pump is impossible to say, but it’s a factor.

Unfortunately, it doesn’t look like gas prices are going to head much lower anytime soon.

Indeed, in our own energy forecast, we say “there’s a good chance that the national average will surpass the $4.33 record high set in March.”

At this point, only an economic recession caused by the Federal Reserve’s coming interest rate hikes – which some economists are starting to warn about – would be able to really lower gas prices.

The American economy and modern world are based on fossil fuels and all of this is being played out against the backdrop of a Democratic Congress and administration with an unrelenting hostility toward them.

The pain of the gas crisis was on Biden who had to appear as if he was doing something to alleviate it – besides blaming Russian President Vladimir Putin, which no one outside the D.C. Democratic Beltway will buy for a minute.

The SPR has also released some other releases since 2015 that have been mandated by Congress for funding federal spending, but they pale in comparison to Biden’s releases.

After having missed out, he wants to make up for it by buying oil when everyone, including American motorists, is in the market at the same time.

There is no doubt that every policy that has come from Biden’s desk or his administration’s offices in the past 15 months has been a disaster.

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