Weekly Opinion Editorial
GREEN HAS BEEN PAINFUL!
by Steve Fair
According to AAA, the average price for a gallon of
gas in the United States rose to a new record last week- $4.48 per gallon. That is up $.15 from the previous week and
$1.43 higher than the same day last year.
In California, the average is
$5.98 per gallon. In Oklahoma, it is
2021 to January 2022, crude oil prices increased 45%, blowing past records set
in 2008. Gasoline and diesel prices are the highest on record since the Energy
Information Administration (EIA) started keeping track in 1993. Natural gas
prices are up 46%. Average household electricity prices haven’t grown this fast
since 2008. Coal prices have ticked
upward after years of policy-driven decline. Most of this comes after a series of orders
by President Joe Biden to combat climate change.
Immediately after taking office, Biden issued
Executive Orders(EO) cancelling the Keystone XL oil pipeline project and temporally
suspending oil and gas permits on federal lands and waters. The administration had to resume issuing new
leases after the EO was struck down in federal court, but the Biden administration
has appealed. Three observations:
First, rising fuel costs impact
everything. Prices of food, clothing,
and every other consumer good is higher because of increases in freight. America’s freight rates have increased +43%
in the past two years, primarily driven by fuel increases. Businesses must pass through those fuel costs
to survive. That is a major reason consumers are seeing higher prices at their
local grocers shelf.
Second, fundamental economics dictate the
way out of high prices and high demand is increased supply. President Biden’s idea to increase supply has
been to persistently reject allowing U.S. energy companies to ‘drill baby drill.’
Instead the Biden administration has
been in negotiation with Venezuela to import oil to the U.S. Back in 2012, President
Obama and then Vice President Biden said that America could not drill its way
to lower gasoline prices, but U.S. energy companies proved them wrong.
Third, the path to becoming ‘green’ has
been painful. President Biden is clearly
committed to America becoming a nation that is not dependent on fossil fuels. Government subsidies(your money) to wind and
solar power companies totaled $158 billion last year. Without those tax dollars those industries
would be unprofitable. Shutting down the Keystone and stop drilling on federal
land have been goals of the left for years.
Pushing Americans to buy electric vehicles
doesn’t really make us green, because most electric power is coal (a fossil
fuel) generated. It’s all about optics,
not reality. Biden has blamed Putin’s invasion of Ukraine for the high prices
at the pump. The truth is Biden’s failed
energy policy is the problem.
Two things need to take place to help
drive down inflation and high fuel prices.
First, drill baby drill. America
has enough oil and gas in the ground to supply our fuel needs. With the stroke of a pen, President Biden
could open up drilling and within months, the supply issue would be
solved. Second, the EPA needs to reduce
the percentage of soybeans produced used to make biodiesel and the percentage
of corn earmarked for ethanol. Americans
are putting their food into their fuel tanks, resulting in higher food costs on
products using soybean oil and corn.
Continental Resources Chairman Harold Hamm
said, “The Biden administration’s failed policies on energy are not working
and it doesn’t appear they intend to do anything different than what the president
has stated repeatedly.” Hamm described
Biden’s energy policy as ‘ridiculous,’ and said the administration has
increased regulations on the energy sector.
Midterm elections are just four months
away and Democrats can ill afford to have record inflation and historical
prices of food and fuel. According to Project
538, Republicans already have a +2.3-point advantage over Democrats with the
American people. That margin will widen
further if Biden sticks to his failed energy policy and that will result in a
bloodbath for Democrats in November.