The glaring and most readily available option for returning energy costs in the U.S., to pre Joe Biden numbers, would be to re-open all the U.S. oil and gas production resources right away.
The reason why this can’t happen though is there are a handful of radical tree-hugging left members of the Democratic Party who are loud and influential. Their mantra is the world is on course to end in less than 12 years unless the U.S. rushes to get to zero emissions.
Thus the Biden administration has acquiesced to the “AOC” squad by shutting down as much production as possible leading to huge increases in heating and gasoline costs.
On Tuesday, one of the two mavericks on the left, U.S. Sen. Kyrsten Sinema (D-AZ) bucked the party, calling for the administration to increase domestic oil drilling to make up for the loss of Russian imports that has contributed to high prices at the gas pump.
The Arizona Democrat, who is often at odds with the progressive wing of her party, called for an “all-of-the-above energy strategy,” which generally means promoting the production of both renewable and fossil fuels. She said the U.S. dependence on foreign oil jeopardizes its security and that of its allies.
“The reasonable way to address what is going to be an oil shortage in America is for us to responsibly increase our own domestic oil production,” Sinema told business executives at a luncheon for the Arizona Chamber of Commerce and Industry.
The U.S. cut off imports of oil and gas from Russia after its invasion of Ukraine, but Russia remains a major energy supplier to Europe.
“We can help our European allies do the same, but it is incumbent on us to help fill that gap,” Sinema said.
The United States and its allies must provide more support to Ukraine and impose even more punishing sanctions to “tighten that economic vice” on Russian oligarchs and President Vladimir Putin, she said.
In response to the wide-scale anger against President Biden driving up the prices, Joe announced a plan to reduce gas prices that includes more releases from the strategic petroleum reserve and called on Congress to charge oil companies that aren’t drilling in areas where they are approved to do so.
The reality is financial institutions have been unwilling to provide financing for oil or gas projects with increasing frequency, preventing some projects from moving forward.
The U.S. Bureau of Labor Statistics released new consumer price index data on Tuesday which showed that rising prices are continuing. “The gasoline index rose sharply in March, increasing 18.3 percent after rising 6.6 percent in February. (Before seasonal adjustment, gasoline prices rose 19.8 percent in March.),” the BLS noted.
The other maverick, Democratic Sen. Joe Manchin (WV) issued a statement about the nation’s rapidly rising inflation.
“Here is the truth, we cannot spend our way to a balanced, healthy economy and continue adding to our $30 trillion national debt. Getting inflation under control will require more aggressive action by a Federal Reserve that waited too long to act. It demands the Administration and Congress, Democrats and Republicans alike, support an all-the-above energy policy because that is the only way to bring down the high price of gas and energy while attacking climate change,” Manchin said in the statement.
Biden’s mishandling of the Russian/Ukrainian situation and skyrocketing inflation could be the main drivers for a red wave to overwhelm Democratic incumbents up for re-election in November, leading to a record number of seat pick-ups by the GOP.
By: Eric Thompson, editor of Eric Thompson Show.