Democrats claim that these two oil workers have launched a choice war in Iraq to serve these interests, leading a government that is too friendly to the oil and gas industry. did. As expected, there was a call forto suspend the federal petrol tax of18.4 cents / gallon.
Destroying the profits of big oils, speculators, refiners, and storms does not change the basics of supply and demand. Yes, Russia's President Vladimir Putin's grotesque and provocative war against Ukraine has certainly contributed to the rise in the price ofpumps, but that is not the cause of our current predicament.
Demand for oil and gas is increasing as supply continues to break out of the pandemic even though it is not catching up. It may be politically convenient to blame several oil executives in Houston for high prices, but it does nothing to relieve the pain of pumps experienced by Americans. Speculation about future supply and demand is a normal function of the market.
According to the Energy Information Agency,, a new oil refinery with a significant downstream unit capacity has not been built in the country since the late 1970s. Jimmy Earl Carter imposed a storm profit tax in 1980, which at the timeexacerbated supply problems by discouraging investment in oil production. And don't forget President RichardNixon's false wages and price controlsthat led to the distribution of gasoline.
The United States needs to move to a cleaner, more environmentally friendly energy source that emits less carbon. Diversification of America's energy portfolio is a national requirement. What Washington must not do is attack the US oil and gas industry as part of its transition in an era of war, sanctions, inflation, and broader economic uncertainty.
This crisis requires a practical response from policy makers. More Republicans need to take climate change seriously, and more Democrats need to stop a relentless attack on the US oil and gas industry.
Oil is a globally traded commodity. Especially to the extent that American oil replacesoil in Russia, Iran and Venezuela. Where the oil supply occurs is important.
The Biden administration exercises federal power, especiallylimiting new leases for drilling, disrupting new pipelines in North America, and manufacturing with American consumers. A fossil fuel project that hurt the industry.
In addition, reliance on oil authoritarian regimes leads to higher carbon emissions thanAmerican producers adopt cleaner production methods, but are dictatorial. Producers limit the leakage of methane and are less effective or interested in capturing carbon dioxide.
Not surprisingly, Biden will meet Saudi Arabia to open an oil spigot. Better than the big whisper of allowing more Iranian and Venezuelan oil to be exported. Like Russia, Iran and Venezuela are criminal and corrupt governments dedicated to destroying the US-led international order and undermining US power and influence. It is better to produce oil on our own-and ask both democratic and undemocratic oil suppliers who support the international order to increase production-to put downward pressure on prices.
All this leads to a careless petrol tax holiday.
Biden and Congress deserve praiseWhy did Presidentrun out of income generated byfor three months following the enactment of a groundbreaking infrastructure law? Is not it. Federal petrol tax on roads, bridges and other infrastructure projects across the country. The state is also adversely affected as
non-federal (mainly state) funds are used to match the federal dollars ofmajor infrastructure projects.Yes, the administrationclaims to use other money to back up gasoline tax revenues lost in highway projects.
The amount of gasoline tax revenue generated by vehicles with mileage has decreasedover the yearsdue to improved fuel efficiency of automobiles. Maybe the government and Congress will not pay the petrol tax, but should consider the mileage (VMT) fee for the driver of an electric vehicle that uses the road like others who drive a car with an internal combustion engine. .. (While they are working on it,even one former Trump adviser wants, so why not get rid of the Trump tariffs on inflation?)
In addition, the petrol tax There is no guarantee of savings from the holidays will be passed on to the masses of cars. Pump prices can rise anyway, due to unexpected factors that further limit supply outside Washington's control.
The federal petrol tax holiday was a terrible idea, and it's gone again. Congress must abandon this ridiculous gimmick and focus on a real solution that takes our current plight seriously.