I operate a small business.
Every weekday from noon to three eastern time, I do a radio program. I get paid by my flagship station as an employee. Then, with the help of the paid subscribers to this newsletter and the ad revenue I generate in syndication, I distribute the show nationally. While I get paid by the radio station, I then pay my board op, my call screener, other employees, the satellite costs, etc. Your subscription makes it all possible and, frankly, makes it really damn hard for the left to cancel me.
I had previously given my employees cost of living increases because of inflation. Given gas prices right now, several of my employees can work from home and I have encouraged them all to do that. The employees who cannot work from home and must commute will tomorrow find some extra money in their paychecks to help with gas costs.
This is not to pat myself on the back or to brag, but to suggest if you are an employer you might want to think similarly. Merely by letting your employees work remotely you are giving them a pay raise of sorts. Every time they have to fill up because of the office commute, you are costing them serious money.
It has been over forty years since Americans have experienced anything like this and it is all part of President Biden keeping some key promises.
There are issues related to oil prices that are outside President Biden’s control. The Russian invasion of Ukraine and our nation’s willingness to give up Russian oil imports do matter. The ongoing guerrilla efforts by Yemeni terrorists against Saudi production facilities matter. Global demand matters too. Additionally, several American oil refineries have been damaged in hurricanes. At least one has been permanently shut down. Others are undergoing upgrades and repairs.
But President Biden has also directly impacted oil and gas prices in the United States. During the 2020 political campaign, Tim Alberta of Politico asked President Biden this question: “Three consecutive American presidents have enjoyed stints of explosive economic growth due to a boom in oil and natural gas production. As President, would you be willing to sacrifice some of that growth, even knowing that it could displace thousands, maybe hundreds of thousands, of blue collar workers in the interest of transitioning to that greener economy?”
Biden responded, “The answer is yes. The answer is yes.”
In a later debate, Biden made clear he wanted to end the oil and gas industry in the United States. He wanted to end drilling on federal land and in the Gulf of Mexico. He said he wanted to end the oil industry. That was his promise.
When President Biden came into office, his administration began pressuring Wall Street firms to stop funding oil ventures. Specifically, he urged Wall Street banks not to fund drilling in the Arctic National Wildlife Refuge (ANWR) and, when they announced they would not fund the project, Biden terminated the project citing a lack of funding.
Biden also killed the Keystone XL pipeline, which would have increased oil imports from Canada. He imposed a moratorium on leases and reduced the amount of land available for drilling. His administration has dragged their feet on regulatory approvals prior administrations treated as pro forma. There are many variables outside President Biden’s control, but those within his control he used to crippled the American oil and gas industry.
The industry takes twenty years to see real returns on investment. Now, with the most powerful man on the planet hell bent on destroying the industry, the oilmen are paying back their shareholders. They are generating returns on previous investments instead of expanding new projects. Who can blame them? The President has made clear he will put them out of business. They are now cashing out, not expanding or undertaking new investments.
President Biden could bring gas prices down tomorrow if he declared a truce, encouraged drilling in ANWR and the Gulf, and encouraged Wall Street to invest in fossil fuels. The oil market is a futures market. Present positive action that shows a future supply is coming will impact the market price now.
But the Biden Administration will do none of those things. This is President Biden manufacturing a crisis and not letting it go to waste so he can force us into a green new hell.
Promises Made. Promises Kept.