Joe Biden’s Permanent Energy Inflation

“When America stands for principles… it requires sometimes for us to put ourselves out there in a way that maybe we will incur some costs. In this situation, that may relate to energy costs.”
– Vice President Kamala Harris

Apparently it was a stroke of luck that Russia invaded Ukraine last month. Otherwise the Biden administration wouldn’t have anyone to blame the soaring cost of gas on.

While “Putin’s Price Hike” does have a nice alliterative ring to it, no one with a working brain believes the current global energy inflation crisis was caused (solely) by Moscow.

And while I’m just as reluctant to blame inflation on any one administration here in the US, I’d have to give the lion’s share of the credit for this mess to Team Biden and their obsession with renewable energy. 

In your next couple letters I want to explain why energy prices aren’t coming down anytime soon…

How to Kick Start Energy Inflation at Home

From his first day in office, the Biden administration has been hostile toward the fossil fuel energy industry. 

  • On day one he canceled the Keystone XL pipeline…
  • He ordered a 60-day pause in the issuing of drilling leases on federal lands, cutting oil companies’ ability to produce…
  • He reinstated methane regulations calling for “substantial reductions in U.S. methane emissions.” (It’s estimated these regulations will cost the industry $600 million.)…
  • Finally he’s looking to eliminate tax deductions and regulatory advantages to hydro-carbon based producers… 

None of this is remotely friendly to the business interests of the industries that power our country and economy. Prices responded to the assault like you’d expect… They headed north.

But then, as if a bucket of gas needed to be thrown on the fire of rising energy prices, Russia invaded Ukraine. And the uncertainty added to the situation by the sanctions the US and the rest of the world placed on Russia drove prices higher still.

It also gave the administration an opportunity to lay some blame by calling US oil producers money-hungry profiteers (always a good strategy)…

Mr. Biden then looked at the camera and issued a stern warning to the oil industry: “Russia’s aggression is costing us all,” the president said, “and it’s no time for profiteering or price gouging.”

…And demonstrate their complete and total ignorance of how the industry works (my emphasis)…

(Energy Secretary Jennifer) Granholm, who has been quite vocal in her support for renewables replacing oil and gas, told the oil industry that a short-term increase in oil and gas would not go counter to the White House’s energy agenda. “We can walk and chew gum at the same time…”

Translated for the energy industry that basically says, “We’d like you to help us out until we get through this crisis… then it’ll be back to screw you.”

Adding Insult to Injury…

…Is not the way to get any industry to back you up.

Yet that is what the administration did. And from where I sit, they did it for two basic reasons. I’ll explain them in your coming letters…

Make the trend your friend,

Bob Byrne
Editor, Streetlight Daily