Standard Disclaimer-The “Soapbox” is not intended to portray any official ECA position or opinion. Nor is it to be inferred that any ECA member shares the opinion stated in the Soapbox. The Soapbox is purely intended to be an Op-Ed piece done by John Bly each week to stimulate interest and thought on a wide range of topics.
We all feel the higher gas prices and diesel prices at the pump, and we can certainly see that higher transportation costs are making our goods, groceries, and travel cost us more. Our businesses, which are largely based on carbon engines, are some of the first to experience the higher cost for fuel. And by God, we want to blame someone for those higher prices.
Those of you who know me, can understand why I want to loudly and assertively scream “Hell Yes” to my own question as to should we blame Biden. Alas, I have to (sometimes) use logic and facts to form my opinions.
“But Biden cancelled the Keystone Pipeline-surely that has caused oil prices to rise!”. Sumbitch-that Keystone Pipeline argument is a tough one to toss away.
Ok-let’s go back to “Oil and gas” civics class. Although I would like to blame Biden for higher gas prices, the fact remains there are few actions a president can take to impact gasoline prices in the short term. Those few actions historically have been 1). Release oil from the Strategic Petroleum Reserve; 2). Increase gasoline taxes; or 3). Engage in a war in the Middle East.
Sleepy Joe has done none of these. While I will argue that what he has done will certainly lead to higher prices in the long term, his actions have neither helped nor hurt the oil and gas industry yet.
After cancelling the Keystone pipeline, Biden suspended new oil and gas leasing and drilling permits for federal land and water.
That action along with the Keystone Pipeline cancellations, were clearly the main reasons behind the rise in gasoline prices.
Not so fast.
Note when oil and gasoline prices began to rise. That rise started in May 2020. Between the first week of May 2020 and the last week of December 2020, oil prices had tripled.
Hmmm—darn it. Biden did not cancel the Keystone Pipeline until 2021. Shoot, Biden did not cancel oil and gas leases until the Spring of 2021.
So, at this point, you are thinking-“ok genius John-if it wasn’t Biden, then who do I blame?”
The reason oil and gasoline prices rose is that the economy started to open back up from the Covid-19 shutdowns. Those shutdowns had negatively impacted a couple of million barrels of U.S. oil supplies, and those supplies were slow to bounce back once the economy opened back up. That’s why we have soaring oil and gasoline prices.
I can enjoy filling up at the pump and chanting “Let’s Go Brandon” with several other rowdies. It is kind of fun. And Lord knows Biden is easy to blame and easier to laugh at.
But as the Brothers Osborne explain as if Biden was singing it-“It Ain’t My Fault”. Click here for their music video-https://youtu.be/E5RDEXpc8OY
It is the fault of China-who did more to create the pandemic and spread the COVID virus than any other person on the planet.
So, you want somebody to blame for higher gas prices now-blame China. If you want to blame someone for higher gas prices in the long term, blame Biden.
Just my opinion folks.
That’s All Folks!
John Bly
