The Truth Behind the Rising Price of Fuel

Why has the cost of oil gone so high after being so low? If you listen to the current administration, they received a problem from the previous administration with the amount of oil being produced and with the price being very low. In all fairness the previous administration had increased the amount of drilling and fracking, encouraged expansion in offshore drilling, and opened federal lands for exploration and production. The Keystone XL pipeline was started and approved and was underway being built, despite the cries from the environmentalists and the anti-fossil fuel extremists. The first day of this president’s administration was spent writing executive orders eliminating the executive orders written by the previous administration, to include canceling the XL pipeline closing all federal lands to drilling, eliminating fracking and refusing to give new leases and new permits to drill. The president has said that through his spokesperson and in person that it’s not his fault his main goal was to totally eliminate Covert 19 and stop the pandemic.  Without getting into the heated debate of was the response to the pandemic in closing everything down the proper way or should we have just left everything open. The economy slowed, the demand for fuel decreased because nobody was traveling. When demand decreases and supply goes up prices go down. Simple economics! But as we began to lift the restrictions on staying at home, and as businesses began to open, another issue arose. There was a lag in the supply chain. This caused the economy to fall even further, the demand for fuel both personal and in transportation of course increased as people begin to get out the supply of crude oil to make this fuel was still low because production had been halted. The administration says there are 9000 permits that could be drilled upon and brought in to help increase this shortage. The truth is that these 9000 permits granted the owners the right to explore and by leases there are further regulations and permits that need to be acquired to drill. This administration has made it known that they are against the fossil fuel industry, they have made it known that they want to see more renewable energy immediately in the form of solar, wind energy and other green sources.

Moving forward, the price of gasoline jumped over a dollar and ½ before Russia invaded the Ukraine. As the global partners along with the United States have enforced sanctions on Vladimir Putin for his illegal invasion of the Ukraine the oil supply has diminished even further. It is this administration’s attitude towards the US petroleum industry that keeps us from actively pursuing new supplies. This administration would rather do business with the Saudi’s, who won’t even take the president’s call, the mullahs of Iran, which continue to say death to the infidels and in the West, and the dictatorship in Venezuela who is a Putin puppet.

Canada has offered to sell us more oil through existing pipelines and requests the construction of new pipelines to which this administration has said no! All the ideals of the socialist ‘Green New Deal” will inherently harm this country’s economy. Socialism is not the best way to move forward. Before the COVID-19 pandemic this country was on the way to becoming energy independent. We had even begun to export surplus crude. Even during the early year of the pandemic, we were still energy independent and exporting access. After the inauguration within this short period of a couple of days we that all went away with one executive order after another undoing everything the previous administration had done to help stimulate and boost this economy. This administration’s agenda has taken us down a difficult road with lack of fiscal resolve and the Fed not reacting sooner we will now start to see inflation rise to the point that we go into another recession. We survived the last recession and came out better and if the American people decide that their last choice in the election was not the right choice and start using common sense to elect people to office that have a positive agenda and not be merely seeking more power, then we will have a quick recovery. It is obvious that we do not want to lift the sanctions on Putin and his oligarchs even if he gets out of the Ukraine totally. It is not for me to say that Vladimir Putin needs to be removed from power that is for the Russian people to decide.