Why Are Gas Prices Soaring Under Biden’s Administration?

Why are gas prices rising after Biden was elected? Since Joe Biden became president, the price of gas has hit record highs! Is Biden responsible for gas prices? Are oil companies taking advantage of us? Who controls the price of a gallon of gas?

This story by Rachel M Johanson from www.Unsipillable.com

Since Joe Biden took office, Americans have faced record-high gas prices. Many are asking, “Why?” and looking for someone to blame. Is it the President, Russia, greedy oil companies, or natural or man-made global events? Here’s MY take on the factors contributing to these skyrocketing prices and understand the underlying causes.

Here’s How Global Events Affected Gas Prices:

One of the most significant factors affecting gas prices is the geopolitical landscape, particularly the conflict between Russia and Ukraine and Joe Biden’s inability to act as a mediator at best, and outright fueling the flames at worst. The Biden administration has brought us closer to a world war now, than at any time in my lifetime and Russia just happens to be the world’s third-largest oil exporter. The mishandling of foreign affairs and tensions with the West have severely disrupted the global oil supply. Russia’s invasion of Ukraine on February 24, 2022, mixed with the United States’ response caused oil prices to spike dramatically.

I’m not saying that oil companies aren’t greedy, they are, but what company ISN’T greedy? One main difference is the importance of fuel and how much power the oil companies actually wield. While we are certainly only numbers and profit margins to the big oil, THIS surge had more to do with immediate uncertainty and instability in the global oil market brought on by inept leadership and poor business and of course, war.

And Here’s How America’s Own Domestic Policies Affected The PRice At The Pump:

Biden’s administration has been vocal about transitioning to greener energy sources. This long-term goal, which has many times been proven to be environmentally detrimental (have you ever seen a lithium mine?), has created apprehension within the oil industry. Companies are hesitant to invest billions in new facilities or expand existing ones, knowing that future liberal policies might severely curtail their operations. This cautious approach is understandable; why invest heavily today if you’re likely to face stringent regulations or shutdowns tomorrow?

Supply and Demand Dynamics

The fundamental economics of supply and demand also play a crucial role. Increasing oil production is not an overnight process. It takes 6 to 9 months to boost production at existing facilities, and building new ones could take years. The current administration’s push for increased production is somewhat contradictory, given their simultaneous drive towards reducing carbon emissions and dependence on fossil fuels.

The Myth of Price Gouging According To A Professional All-Knowing Liberal.

I had a conversation with someone the other day. Someone who fancies themselves an expert on everything. He explained to me that “if oil companies are exploiting the situation to inflate prices during the Ukraine conflict, they would have done it long ago. Why wait? The reality is that the market dictates prices based on supply, demand, and geopolitical stability and nothing else”

To be honest, I didn’t know how to respond. I was stunned. They HAVE been gouging us since the beginning. They have accidents, destroy nature, plead bankruptcy, give million dollar bonuses to themselves, etc. If they ever get fined, or taxed, they just push that cost onto the customer. When have they ever had to tighten their own belts?

The Future of Oil Investment

Oil companies face a paradox. On one hand, there is immediate pressure to increase oil supply to reduce prices. On the other, long-term signals from the Biden administration suggest a move away from fossil fuels. This mixed messaging discourages significant investment in new oil infrastructure. Companies are wary of sinking funds into projects that might become obsolete or face heavy regulation before they even start operations.

Top 10 List of Factors Influencing Gas Prices Under Biden

  1. Geopolitical Tensions: The Russia-Ukraine conflict has disrupted global oil supplies.
  2. Domestic Energy Policies: The push for green energy creates uncertainty for long-term oil investments.
  3. Supply Chain Disruptions: COVID-19 aftermath affecting supply chains.
  4. Global Demand: Post-pandemic recovery has increased global energy demand.
  5. OPEC Decisions: OPEC’s production policies significantly impact global oil prices.
  6. Regulatory Environment: Anticipated future regulations deter investment in new oil facilities.
  7. Economic Sanctions: Sanctions on oil-producing countries like Russia affect global supply.
  8. Market Speculation: Investors’ perceptions and speculations drive oil prices.
  9. Infrastructure Limitations: Aging infrastructure and lack of new investments hamper supply increases.
  10. Environmental Policies: Immediate environmental policies sometimes conflict with short-term economic needs.

The surge in gas prices under the Biden disastrous administration is a complex issue with no single culprit. While global events like the Russia-Ukraine war play a significant role, domestic policies and market dynamics are also crucial factors. The current administration’s challenge is to balance the urgent need for affordable energy with the long-term goal of transitioning to partial renewable sources. Until this balance is achieved, Americans may continue to face high gas prices.

– Rachel M Johanson

Here’s a statement from the white house about Russian oil: https://www.whitehouse.gov/briefing-room/statements-releases/2022/03/08/fact-sheet-united-states-bans-imports-of-russian-oil-liquefied-natural-gas-and-coal/

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