The Real Reason for Record Gas Prices

Gas prices continue to rise.

“The reason for that is because of Putin’s war,” said President Joe Biden.

It’s not possible. All of the price rise came Before Putin attacked Ukraine.

So some politicians simply blame “corporate greed.”

Sen. Sheldon Whitehouse accuses the oil industry of collecting “excess profit.”

Sen. Elizabeth Warren even introduced a bill to ban “price gouging.”

As my article explains, this is economic ignorance. New video explains.

“If big oil could raise prices anytime they wanted and get away with it, then why were they so cheap in 2020, 2019, 2018?” asks the Competitive Enterprise Institute’s Ben Lieberman.

Lieberman points to the fact that corporations are greedy. The greed didn’t begin now. They were equally greedy as they were when gas prices rose fell in 2019 and early 2020.

“It all comes down to cutting back on supplies,” says Lieberman.

It’s easy. The supply and demand effect changes the prices.

The COVID-19 pandemic saw a decrease in gasoline demand and fewer drivers. The price of gasoline also fell. The drilling was less by oil drillers. Because people drive again, the demand for oil is higher.

It takes some time for producers, however.

“It takes months, not days, for a company to increase production,” says Biden.

It’s a relief that the president is aware of that. However, he fails to mention how his policies have reduced production and raised the gas price. This was not something he mentioned when he stopped a long-planned sale off offshore oil rights.

Biden should also stop the construction of a pipeline to transport oil from Canada to Wisconsin, according to activists. It has been delayed for five years. The Keystone Pipeline was delayed for 16 years before Biden finally killed it.

It is ridiculous. The environment is not helped by stopping pipelines being shut down. But oil still travels by truck, rail and barge. It leads to More oil spills.

One congressman at least is just as stupid as the activists.

Last fall, at a congressional hearing titled “Exposing Big Oil’s Disinformation Campaign to Prevent Climate Action,” grandstanding California Rep. Ro Khanna scolded oil executives for producing too much oil.

“Are you embarrassed as an American company that your production is going up?” Khanna said to Chevron CEO Michael Wirth.

“Demand for energy is going up in the world,” Wirth responded, reasonably.

“Would you commit to reducing the production of oil?” Khanna asked ExxonMobil CEO Darren Woods.

“We’re committed to lowering our emissions,” Woods answered.

“I’ll take that as a ‘no,’” sneered Khanna.

Funnyly, Khanna now complains that oil companies can’t produce enough (END ITAL) more oil. “They’re still not increasing the production!” he whines.

Khanna was a hypocrite and I tried to ask him about it, but he wouldn’t speak to me.

“It’s amazing what $4 a gallon gasoline in an election year will do to cause some people to change their minds!” says Lieberman.

However, environmentalists are not completely insane.

“We have to protect the Earth,” I say to Lieberman. “Sometimes the market isn’t the best director.”

“There is pollution, and there is a reason to address it,” Lieberman responds, “But we have to be realistic … these threats are repeatedly exaggerated.”

They certainly are.

“(But in) the public debate, you’re losing. They’re winning,” I point out.

“At $4 a gallon gasoline, I think we’re seeing a rethinking of the climate agenda,” Lieberman replies.

Biden, at his State of the Union address, did say his top priority would be “getting prices under control.”

However, he cannot control the gas price without more consumption of these hated fossilfuels.

“The Biden administration either has to choose between affordable energy or the climate agenda,” says Lieberman. “It can’t do both.”

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