President Biden faces shortages in his energy policy

Just 18 months ago Joe Biden took the oath of office as president of the United States of America and began releasing the full power of the federal bureaucracy to change the nation’s energy industry. He vowed to rid America’s power grid from fossil fuels with “clean energy.”

Day one he nixed the construction of the Keystone XL pipeline. Later came changes in the leasing of federal lands for oil and gas exploration. EPA proposed new regulations on oil and gas wells. SEC wants more information from companies about how they are addressing environmental, social and governance (ESG) issues.

Shortly after Biden’s inauguration in January 2021, crude oil prices began to rise from $50 per barrel to $70 by summer to $90 in January a year later and $120 today. Gasoline followed going from $2.40 per gallon in January 2021 to $5 today.

Rising energy prices fueled inflation, which has resulted in a decline in Biden’s approval rating.

His response has been verbally attack oil producers and refiners, the very industry he needs to create more supplies of petroleum products to soften prices.

The “quick fix” that the president is seeking doesn’t exist, and it involves many moving parts to increase supply in an effort to meet rising demand internationally.

The International Energy Agency (IEA) forecasts world oil demand will expand by 2.2 million barrels per day (b/d) to 101.6 million b/d in 2023, surpassing pre-pandemic levels.

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