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Biden Got the Energy Market He Wanted

June 23, 2022

By Paul Homewood

 

Karl Rove covers all the bases here:

 

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Since day one, he’s tried to limit fossil-fuel supplies, and we’re all paying for it.


Trying to limit the political damage of skyrocketing gasoline prices, the Biden administration on Sunday trotted out Energy Secretary Jennifer Granholm. They’d have been better off if she’d gone to Mass.
Appearing on CNN’s “State of the Union,” Ms. Granholm said “we need to have increased production, so that everyday citizens in America will not be feeling this pain that they’re feeling right now.”
The context of the discussion was President Biden’s upcoming visit to the Gulf Cooperation Council, where he’ll ask the Saudis to increase oil production. Ms. Granholm got the general principle right: The answer to high prices is increased supply. What she got wrong was locating the solution some 7,500 miles away in Middle Eastern oil fields.
She didn’t have much of a choice. Since taking office, Mr. Biden has labored hard to make American fossil-fuel production more costly so green energy alternatives become more attractive. He succeeded, and the result is record prices.
On his first day in office, Mr. Biden canceled the Keystone XL pipeline and halted new leases in Alaska’s Arctic National Wildlife Refuge. A week later, he banned new oil and gas leases on federal lands and waters, and in June he shut down exploration on existing leases in ANWR. In October, he increased the regulatory burdens on building pipelines and other infrastructure. This February he limited leasing in Alaska’s National Petroleum Reserve. At every turn Team Biden has worked to restrict and reduce domestic oil and gas production.
Almost a year after a federal judge enjoined the White House from implementing its pause on leases in federal lands and waters, the administration in April finally offered 144,400 acres for exploration—only 20% of the acreage originally slated for this tranche of leases. The administration also raised the federal royalty by 50%, increasing the cost on American consumers. It nominated regulatory officials hostile to fossil fuels and issued climate disclosure rules that made lenders skittish about providing capital.
Team Biden got what it wanted: Daily U.S. oil production dropped from 12.29 million barrels in 2019 to an estimated 11.85 million in 2022, well after demand had rebounded from the pandemic.
Mr. Biden blames Vladimir Putin, but prices rose quite a bit before Russia invaded Ukraine. In January 2021, the average price of regular gasoline was $2.33 a gallon. By February 2022, it was up to $3.52. As of May, the average price was $4.44; so 56% of that price rise predated the invasion.
After doing everything in his power to constrict American supply, Mr. Biden is now threatening a windfall-profits tax, even though oil and gas production saw only a 4.7% net profit margin last year. Compare that with Microsoft’s 39% net margin, Facebook’s 33%, Google’s 30% and Apple’s 27%. Yet Mr. Biden won’t confiscate tech company profits.
The president now proposes a three-month holiday from the 18.4-cent-a-gallon federal gasoline tax. But this would raise demand and increase the deficit while doing nothing to boost production.
If Mr. Biden were serious about lowering fuel prices, he’d follow the advice of President Clinton’s Treasury Secretary Larry Summers, who suggested Sunday “an all-in more- energy-supply approach that emphasizes freeing up fossil fuels.” That means undoing all of Mr. Biden’s earlier decisions that pushed oil and gas prices up. It’s important to start now. It took a year and a half of bad actions to get here; it’ll take time to increase supply and thereby produce downward pressure on prices.
To begin, Mr. Biden should stop the Environmental Protection Agency’s assault on small U.S. refineries, which produce roughly 30% of America’s gasoline and diesel. Longstanding EPA regulations require them to blend renewable fuel into their product or purchase special credits in a marketplace, but most can’t blend in ethanol because it’s too corrosive to be moved through pipelines. The EPA has long solved this problem by routinely granting these refiners exemptions if no credits are available, as provided by law.
Earlier this month, the EPA announced it is essentially ending exemptions and punishing refiners by retroactively denying exemptions back to 2016, requiring the industry to pay billions. Even the EPA admits consumers will have to cover these costs. Industry leaders fear some refineries won’t be able to operate under the new regime and will instead shut down, reducing the supply of gasoline and diesel still further.
In pursuit of climate goals, Mr. Biden’s policies raised costs for oil and gas and reduced supply. The result is higher gasoline and diesel prices at a time when inflation is already driving up the price of everything else. Mr. Biden got what he wanted, and it’s making life harder for ordinary Americans. Because of that, there will be hell for Democrats to pay come November.

https://www.wsj.com/articles/biden-energy-market-gas-oil-green-energy-fossil-fuels-production-high-prices-11655924583?mc_cid=48c3be8a3a&mc_eid=4961da7cb1

24 Comments
  1. dearieme permalink
    June 23, 2022 4:18 pm

    Geriatric Joe’s policies are so stupid that they’re the sort of thing that would make me fall off my bike.

  2. devonblueboy permalink
    June 23, 2022 4:22 pm

    Biden seems to be even more stupid than B. Johnson MP. A very alarming thought.
    Has he got his own personal cassandra whispering in his ear; a US version of Princess Nut Nuts?

    • alexei permalink
      June 23, 2022 6:23 pm

      He’s simply following orders; surely that’s obvious!

  3. Mike Jackson permalink
    June 23, 2022 4:22 pm

    Biden and Johnson are a pair! The entire net-zero/renewable energy scam is hypocrisy on stilts!
    You cannot — at least not until some magic new fuel is discovered or invented (and nobody should deny the possibility, human ingenuity, etc., etc …) — run a modern economy on renewable energy.
    But it’s OK to source your fuel supplies (or offshore your industry) from somewhere else so you can lie about how much less CO2 you are emitting then x years ago. Well ….. not lying exactly, just “being economical with the actualité”.
    Surely this house of cards has got to collapse soon?!

    • June 23, 2022 5:08 pm

      Not while the whole of the Labour Party, Lib Dims and most of the Tories are on board.

      The US is lucky, in that the GOP are luke warm at best on the green agenda

    • Ray Sanders permalink
      June 24, 2022 1:22 am

      “But it’s OK to source your fuel supplies (or offshore your industry) from somewhere else so you can lie about how much less CO2 you are emitting then x years ago.”
      Well Mike here is an interesting turn around….since mid April we have switched from nett importers of electricity from Europe to significant exporters to Europe. Basically we are importing LNG from the US, burning it in our power stations and exporting it as electricity for profit (as well as exporting the gas directly to Europe via pipeline.)
      As the CO2 emissions are accounted to the generator and not the importer this switch around becomes a double whammy. This website shows our recent emissions from electricity generation have shot back up to the levels of 5 years ago at 257g CO2 per kWh and rising.
      http://www.mygridgb.co.uk/last-28-days/
      When Hinkley Point B closes over the next 2 months, we will start firing up the knackered old coal fired units and even start burning oil in the gas turbines so those emissions will get higher still. It is also interesting to note our remaining geriatric 7GW of nuclear power have managed 19.8% of generation over the last month whilst over 25GW of relatively new wind turbines only 16.5%. It appears last year’s extended wind lulls have become a feature of this year as well
      I somehow doubt the BBC/Guardian will be reporting on these issues.

  4. Joe Public permalink
    June 23, 2022 4:24 pm

    Josh hit the nail on the head:

  5. Tim Spence permalink
    June 23, 2022 5:38 pm

    It’s the same everywhere … in USA, Canada, UK, Europe and Australia because the governments are all working from the same plan. There are small differences purely because they are different economies.

    There are riots in poorer countries like Chile, Bolivia and Colombia, the latter being the latest to fall to Neocommunism and all suffering from the price of basics and fuels, Sri Lanka has hit the rails hard following the attempt at organic farming.

    This ‘Great Reset’ conspiracy theory is looking a like a solid bet.

    • alexei permalink
      June 23, 2022 6:24 pm

      Good to see someone has “got” it on here.

      • Harry Passfield permalink
        June 23, 2022 7:23 pm

        Alexei….I think that many of us ‘on here’ have figured that out. World governments seem to working to a WEF/one world Gov ‘plan’.

      • June 23, 2022 8:19 pm

        More like a WTF? plan, Harry. Makes no sense, huge costs, delivers chaos.

  6. Harry Passfield permalink
    June 23, 2022 7:18 pm

    “In pursuit of (Biden’s) climate goals…” – The man has no ‘goals’, other than to get through the day without soiling himself. The man’s a puppet and I keep thinking that he’ll find his Ceausescu moment at some time….
    As for fuel prices being manipulated in favour of EVs: I’d be more inclined to think they’d been manipulated in favour of Hunter Biden. I’m sure there are routes back to him and his cronies when it comes to making a buck. The Bidens are bad.

  7. EppingBlogger permalink
    June 23, 2022 9:57 pm

    If you have a machine with a small petrol engine read the instructions and the warranty carefully. I read mine and learned I should use manufacturer’s additive to prevent ethanol comntaining fuel from corroding the internal parts of the engine and breaching the warranty. The ethanol fuel is less efficient and damages engines. The additive adds to the costs and in my area it is not readily available.

    • Ray Sanders permalink
      June 24, 2022 12:58 am

      Hi EppingBlogger (and for the benefit of anyone else) According to Esso themselves their Synergy Supreme + fuel does NOT contain ethanol…..BUT it has to be dispensed from a pump showing E5 by government diktat because they COULD add up to 5%ethanol …..but they don’t!!!!!! See answer to Malcolm Ayling on this Facebook page.

      Make of this what you will

      • Gerry, England permalink
        June 24, 2022 11:23 am

        Yes, that is what Esso say so when I need some more fuel for my tools then I will be off to my local Esso with my jerrycan.

    • John Hultquist permalink
      June 24, 2022 4:30 am

      I use ethanol-free gasoline (right, I’m in the USA) in small engines at the directive of the companies that manufacture chainsaws, lawn mowers, and similar things. Today, I paid $5.15 per gallon for 10% ethanol and $1.25 more for ethanol-free.
      Ethanol is a “universal” solvent; that is why it harms engines not designed for it.

  8. cookers52 permalink
    June 24, 2022 6:28 am

    Net zero is the chosen remedy for the climate emergency.
    However the economic side effects of the remedy are turning out to be worse than actual emergency.
    Politicians need to make the climate emergency really bad, so expect the propaganda to get more extreme and even normal weather will be rebranded extreme.

  9. Robert Christopher permalink
    June 24, 2022 8:05 am

    One positive aspect of WWII is that, at least it was The Enemy that was destroying your Industrial Base, and not your own politicians. 🙂

  10. June 24, 2022 9:23 am

    It’s just not going his way…

    Biden’s Gas Tax Suspension Proposal Falls Flat In Congress
    Jun 23, 2022

    https://oilprice.com/Energy/Energy-General/Bidens-Gas-Tax-Suspension-Proposal-Falls-Flat-In-Congress.html

  11. Gerry, England permalink
    June 24, 2022 11:29 am

    You can’t even say that the people are getting what they voted for since the evidence indicates that they didn’t. Roll on the mid-terms.

  12. David Wojick permalink
    June 24, 2022 12:41 pm

    Rove burried his lead. The EPA move sounds illegal and has immediate impact.

  13. Tim Spence permalink
    June 24, 2022 1:08 pm

    Karl Rove forgot to mention – February 19, 2021 On January 20, on his first day in office, President Biden signed the instrument to bring the United States back into the Paris Agreement

  14. Coeur de Lion permalink
    June 24, 2022 2:15 pm

    In all of this, let’s not forget that UK and USA will make no difference to the weather in 2100 whether or not CO2 has influence. There is no way that the rise in atmospheric CO2 is going to be checked. So let’s get used to it and encourage ourselves with low ECS numbers.

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