The energy industry blames Biden’s oil and gas downturn for higher prices

President Biden’s repression of the oil and gas industry is driving sky-high energy prices, and Build Back Better will only push costs higher, according to the American Petroleum Institute.

In his 2022 State of American Energy speech on Wednesday, API President Mike Sommers said the U.S. position is strong, but that “we begin 2022 with Americans considering energy and its costs as major concerns.”

“This is in part because we have recently seen policies aimed at limiting the production and supply of U.S. natural gas and oil,” said Mr. Summer in the virtual event host of the country’s leading oil and gas advocacy group.

He cited President Biden’s Day-1 cancellation of the Keystone XL pipeline, the administration’s lease moratorium on federal lands, and delays in infrastructure improvements, such as the struggle to replace the Enbridge Line 5 pipeline in Michigan.

“Meanwhile, as inflation has risen to historic levels, we have seen proposals in Congress for a targeted tax increase for natural gas and even further restrictions on U.S. energy development,” he said. Summers. “These decisions exacerbate Americans’ concerns and put upward pressure on their energy prices.”

Build Back Better, the Democrats’ $ 2 trillion climate and social spending, includes charges on methane emissions that the industry says will ultimately hit consumers in their wallets.

The measure was passed by Parliament in November, but has still stalled in the Senate after the Senate. Joe Manchin III, West Virginia Democrat and a key voter, said last month that he could not support it.

“Natural gas prices are rising because we are in the middle of a cold winter and there have been restrictions on supply that have come as a consequence of some of the political decisions made by this administration,” Mr. Sommers said. “We are focused on reversing these policy decisions, but at the same time we need to stop this natural gas tax because it would just mean higher prices for US consumers.”

API’s message came with the Biden administration’s ambitious climate change agenda over political headwinds over higher prices and the pump and thermostat.

US Energy Information Administration Forecast that U.S. homes that use natural gas will spend 30% more on heating in the winter of 2021-22, while those heated with electricity will spend 6% more, following “changes in energy supply and demand patterns in response to COVID-19- pandemic. “

The national average cost of a gallon of regular gasoline Wednesday was $ 3.30, an increase of $ 1.01 from the same date last year, according to AAA.

Crude oil was approaching $ 80 a barrel this week, driven in part by production cuts in Kazakhstan, an OPEC + country struggling with social unrest.

The United States is the world’s leading oil-producing country, but policies aimed at limiting production will inevitably result in “consequences,” he said. Summers.

“U.S. policies restricting domestic production are forcing our country to seek OPEC relief, which is undermining our energy dependence,” he said. “America should not be able to ask for foreign energy supplies, especially when we have abundant resources produced to standards that are among the highest in the world right here at home.”

In August, the Biden administration asked OPEC nations to pump more oil to bring down sky-high fuel prices, a request that OPEC and its oil-producing allies rejected, prompting industry officials to oppose encouraging US production instead. .

Mr. The bite, which released 50 million barrels of oil from the strategic oil reserve in November, has characterized the sky-high gas prices as temporary as the nation shifts away from fossil fuels.

“It will take time, but before long you should see the price of gas fall where you fill your tank,” he said on Nov. 23. remarks. “And in the long run, we will reduce our dependence on oil when we switch to clean energy.”

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