Good afternoon,
When gas prices go up, the buck stops with the president.
That’s Joe Biden’s predicament as gas prices for regular in Delaware rose to $3.26 a gallon at most stations and convenience stores.
Those who commented on our weekend social media link to a post on AAA Mid-Atlantic’s weekly gas report were quick to portray the president as the villain behind the pain at the pump.
After all, prices have risen since the former U.S. senator and vice president from Delaware took office in January. It is true that Biden reversed some of the Trump Administration’s pro-drilling policies and canceled the Keystone Pipeline.
Biden did not help his case by hinting that oil companies might be manipulating prices. We have since learned that the administration is quietly working with big oil on ways to increase supply.
The fact of the matter, according to Robert Rapier, is that short of starting a war in the Middle East or releasing the nation’s strategic reserve, Biden’s actions have no impact on prices.
Rapier, who is no fan of the president’s energy policies, laid out his case in a recent Forbes article.
He noted that as the nation and world reopened from the pandemic, crude oil and gas prices rose steadily under both Trump and Biden.
Despite the rhetoric about drilling bans and Keystone, it will take years for the impact to be felt. Oil companies have also accumulated lots of leases that aren’t affected by the president’s decision, he argued. Rapier also acknowledged taking some heat for a previous article that made a similar point.
Add in hurricanes and OPEC deciding to limit production increases to meet growing demand and it is no big surprise that we are seeing $3.26 gas.
By the way, the price spike is happening throughout the world and will eventually spur production in this country. OPEC knows this and will turn on the spigot at some point to protect their markets.
Politicians from both parties have muddied the waters further by bragging that the U.S. is or was energy independent. While we rank first in oil production, the U.S. imports a lot of crude oil.
What can Biden do?
The answer is not much. Market forces, for better or worse, don’t pay much attention to even the most powerful world leaders.
It would help if the administration got off the dime in dealing with the troubled system that calculates the use of ethanol derived from corn kernels. The current system threatens independent refineries in Delaware City and elsewhere.
It is also time to quit subsidizing ethanol. Corn could be put to better use. – Doug Rainey, chief content officer.
