Tag Archives: Gas prices

Dems Who Back Biden’s Crackdown On Fossil Fuels Suddenly Worried About High Gas Prices

From The Daily Caller

By NICK POPE

CONTRIBUTOR

Numerous Democrats who have helped the Biden administration restrict fossil fuel development and production are now concerned about high gas prices as the 2024 elections loom.

A group of 23 Senate Democrats — including Senate Majority Leader Chuck Schumer, Massachusetts Sen. Liz Warren and Pennsylvania Sen. Bob Casey — signed a Thursday letter to Attorney General Merrick Garland asking him to have the Department of Justice (DOJ) investigate major energy companies for allegedly colluding to raise gas prices for Americans and fatten their bottom lines. The suggestion that oil companies are illegally collaborating to rip off American consumers is not new to Democrats, who have revived the narrative as prices at the pump tick up ahead of the 2024 elections.

“The federal government must use every tool to prevent and prosecute collusion and price fixing that may have increased gasoline, diesel fuel, heating oil, and jet fuel costs in a way that has materially harmed virtually every American household and business,” the letter states. “We therefore urge the Department of Justice to investigate the oil industry, to hold accountable any liable actors, and to end any illegal activities.” (RELATED: Democrats Up Pressure On Big Oil To Answer For Alleged Profiteering As Americans Blame Biden For Gas Prices)

Big Oil – DOJ Letter by Nick Pope

The letter references ExxonMobil’s recent acquisition of Pioneer Natural Resources and amplifies the Federal Trade Commission’s (FTC) allegation that Chris Sheffield, the founder and ex-CEO of Pioneer, tried to organize collusion between American and OPEC energy producers to artificially inflate profits. Sheffield, however, has strongly contested this allegation, saying that the “FTC is wrong to imply that [he] ever engaged in, promoted or even suggested any form of anti-competitive behavior” in a statement.

Beyond Warren, Schumer and Casey, other signatories include Democratic Sens. Chris Murphy of Connecticut, Sheldon Whitehouse of Rhode Island, Ed Markey of Massachusetts, Sherrod Brown of Ohio and Independent Vermont Sen. Bernie Sanders. Each Senator who signed the letter also voted for the Inflation Reduction Act (IRA), Biden’s flagship climate bill, and have also supported many other facets of the Biden administration’s efforts to move the U.S. away from fossil fuels.

Warren’s voting record has earned her a 95% lifetime approval score from the League of Conservation Voters (LCV), one of the country’s largest influential environmental groups that openly rejects fossil fuels, and a 100% score for 2023. Last year, Warren voted against an attempt to rein in the government’s push to regulate a wide array of consumer appliances, a bill promoting the Mountain Valley Pipeline and to protect a Labor Department rule pushing asset managers to incorporate climate risks in their investment decisions.

Casey voted in favor of the Mountain Valley Pipeline, but joined Warren on the other two votes. He also voted against a 2022 effort to increase the number of government-issued oil lease sales and opposed another 2022 move that would have prevented federal permitting or regulatory actions from hindering fossil fuel development.

Schumer also voted to support the Mountain Valley Pipeline in 2023, but he has voted in line with what LCV advised in every other instance since Biden took office in 2021, with one exception. He has opposed four legislatives proposals that would have made it easier or less expensive to produce oil and gas throughout Biden’s first term.

Murphy voted against the Mountain Valley Pipeline, and also opposed legislation that would have increased offshore and onshore oil and gas development.

Whitehouse voted against the Mountain Valley Pipeline, as well as numerous legislative efforts to enhance oil and gas leasing activity. Markey, meanwhile, has consistently voted against legislation intended to make it easier to produce oil and gas for his entire career.

Brown voted to support the Mountain Valley Pipeline, but he has opposed four initiatives meant to boost oil drilling through Biden’s first term. Sanders, one of the most left-wing lawmakers in Washington, also voted against the four same legislative efforts and has consistently opposed bills designed to make drilling easier throughout his career.

Gas prices are increasing as the pivotal 2024 elections approach on the calendar. In January, the national average per-gallon price of all formulations of gasoline was approximately $3.08, a figure that has increased to $3.60 as of May, according to data from the U.S. Energy Information Administration (EIA).

The administration is moving to release about one million barrels of gasoline from the Northeast Gasoline Supply Reserve to try to bring down prices this summer. The administration also released 180 million barrels of oil from the Strategic Petroleum Reserve (SPR) ahead of the 2022 midterms, selling several million barrels to Chinese companies and leaving the SPR at its lowest levels in decades.

Numerous economists and analysts, and even the CEO of Chevron, have credited the price increases in part to the Biden administration’s $1 trillion-plus climate agenda.

The administration has made many decisions that restrict domestic oil and gas production, pushed aggressive environmental regulations impacting energy producers and established massive subsidy programs to favor sources of green energy like wind and solar. These choices have the combined effect of driving up prices that consumers pay at the pump and elsewhere over time, according to the American Energy Alliance, a right-leaning energy advocacy group.

In January 2020, just before the onset of the pandemic, Americans paid an average of $2.55 per gallon for all types of gas, according to the EIA. Those figures have grown considerably since November 2020, the month that President Joe Biden won the presidential election; the average price sat at $3.61 per gallon in April 2024 after peaking at $4.92 in June 2022.

Democrats pushed similar messaging about major energy companies and collusion in 2022, when gas prices were causing political headaches for Biden and fellow Democrats ahead of the 2022 midterm elections. However, analysts from the Dallas branch of the Federal Reserve argued at the time that corporate collusion was not one of the factors driving up retail gasoline costs, pointing out that energy producers actually have almost zero control over the prices set by gas station operators.

The offices of Schumer, Warren, Casey, Brown, Murphy, Durbin, Whitehouse and Sanders did not respond to requests for comment.

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Consumer Confidence Drops as Food, Gas Prices Rise

From The Heartland Institute

Rising food cost and grocery prices surging costs of supermarket groceries as an inflation financial crisis concept coming out of a paper bag shaped hit by a a finance graph arrow with 3D render elements.

(The Center Square) – New data on consumer confidence shows that Americans are less confident about the U.S. economy, pointing to higher grocery and gas prices.

The Conference Board, a business research group that tracks consumer confidence, released the new data which showed a decrease in the month of August to 106.1, much lower than the roughly 116 figure experts predicted.

“Consumer confidence fell in August 2023, erasing back-to-back increases in June and July,” Dana Peterson, Chief Economist at The Conference Board, said in the announcement. “August’s disappointing headline number reflected dips in both the current conditions and expectations indexes. Write-in responses showed that consumers were once again preoccupied with rising prices in general, and for groceries and gasoline in particular.”

That concern matches recent cost increases. According to AAA, the national average price for a gallon of regular gasoline is $3.82, up from $3.75 a month ago. Diesel prices have spiked in the last month, up from $4.01 this time last month to $4.41 this week.

Food prices have soared in recent years, putting a strain on Americans’ budgets. In 2022, food prices rose about 10% far outpacing the already high inflation rate. In 2023, food prices rose significantly though at a much slower rate.

A recent analysis from the U.S. Department of Agriculture projects that food prices will continue to rise through 2024.

“Food prices are expected to continue to decelerate but not decline in 2024,” USDA said. “In 2024, all food prices are predicted to increase 2.8%, with a prediction interval of -2.0% to 7.9%.

Interest rates have soared as the U.S. Federal Reserve hikes rates to combat inflation, making borrowing money to buy a home far more expensive. Average rates nationally have topped 7%.

The group’s research also found that those surveyed are more worried about the labor market. The U.S. Bureau of Labor Statistics released its JOLT report Tuesday, which showed the number of available jobs dropped. The report showed that the number of open jobs declined to 8.8 million, down by-338,000.

“Expectations for the next six months tumbled back near the recession threshold of 80, reflecting less confidence about future business conditions, job availability, and incomes, Peterson said. “Consumers may be hearing more bad news about corporate earnings, while job openings are narrowing, and interest rates continue to rise—making big-ticket items more expensive.”

The confidence did vary by demographic.

“The pullback in consumer confidence was evident across all age groups—and most notable among consumers with household incomes of $100,000 or more, as well as those earning less than $50,000,” Peterson said. “Confidence held relatively steady for consumers with incomes between $50,000 and $99,999.”

Originally published by The Center Square. Republished with permission.

For more from Budget & Tax News.

For more public policy from The Heartland Institute.

California Gov. Newsom to make gas prices even higher!

From Watts Up With That?

Guest “You can’t fix stupid” by David Middleton

I couldn’t make this sort of schist up, even if I was trying…

Governor Newsom Signs Gas Price Gouging Law: “California Took on Big Oil and Won”

Published: Mar 28, 2023

WHAT YOU NEED TO KNOW: Following record gas price hikes and profits, Governor Newsom signed his special session bill to hold Big Oil accountable – the latest measure the Governor has taken to rein in the industry.

SACRAMENTO – Today, surrounded by legislators and community leaders in the rotunda of the California State Capitol, Governor Gavin Newsom signed legislation to implement the strongest state-level oversight and accountability measures on Big Oil in the nation – bringing transparency to California’s oil and gas industry, shining new light on the corporations that have for decades operated in the shadows while ripping families off and raking in record profits.

It is the latest instance in which the Governor has successfully taken on the historically powerful industry for putting profits over people. Last year, Governor Newsom signed legislation adding new reporting requirements to oil refiners, as well as a law protecting neighborhoods and schools from oil drilling.

[…]Read more nonsense here: Office of Governor Gavin Newsom

Before vilifying “Big Oil”, maybe Governor Newsom could have checked with AAA…

https://gasprices.aaa.com/

https://gasprices.aaa.com/

Are ExxonMobil, Chevron and the rest of “Big Oil” foregoing profits in Texas, Oklahoma, Louisiana, Kansas, Missouri, Arkansas, Mississippi, Alabama & Tennessee so that they can gouge the Peoples Republic of California? Brings on a whole new meaning of Red States vs Blue States.

There’s nothing new about West Coast gas prices being higher than the rest of these United(ish) States… Note the date of the following article:

West Coast Gas Prices Worst in Nation

By ABC News

W A S H I N G T O N, April 25, 2001 — Drivers on the West Coast pay more at the pump year after year than in anywhere else in the country. There are a multitude of reasons for the region’s sky-high gas prices, but no simple solutions.

[…]

Why the discrepancy?

“California is the third-largest gasoline consumer in the world — behind only the rest of the United States and Japan,” Jim Wells, director of the GAO’s Natural Resources and Environment division, told a Senate subcommittee.

Refineries in California operate at near full capacity in an effort to meet the high demand for gas in the state, but California also supplies fuel to Western states such as Oregon — which doesn’t have a single refinery of its own — Arizona and Nevada. And high demand makes for high prices.

Without a single oil pipeline cutting across the Rocky Mountains, the West Coast is virtually cut off from the rest of the nation’s supply of gas supply, making the region extremely susceptible to sudden gas shortages and the steep price increases they can cause.

“The West Coast gasoline market is isolated from out-of-state sources of gasoline so that supply shortages cannot be easily replaced,” said Wells, noting that shipping gas in from out of state on tanker trucks is a slow and very costly undertaking.

[…]

‘Cleaner’ Gas and Higher Taxes

Another major part of the price problem may be of California’s own making: The state uses its own special kind of gasoline.

[…]

Over the last two decades, nearly half of California’s refineries have closed. And no new refineries have been built in California or anywhere else in the United States since the 1970s.

The oil industry blames the lack of new refineries on stringent government regulations and strong opposition from local communities.

[…]ABC News

What’s changed since 2001? Not much.

Through the expansion of existing refineries, the total U.S. refining capacity has increased by about 1.4 million barrels per day (bbl/d) since 2001.

EIA

However, West Coast (PADD 5) capacity has actually decreased by about 500,000 bbl/d and all of the gasoline consumed in California is refined in PADD 5.

EIA

In 2001, California (714 mbbl/d) produced almost as much crude oil as Texas (1,162 mbbl/d). Since then, California production has plummeted to 335 mbbl/d, while Texas has edged (/sarc) up to 5,043 mbbl/d (Can you say “Permian Basin”?).

EIA

“Without a single oil pipeline cutting across the Rocky Mountains…”

“Same as it ever was”… API

California has one of the highest gasoline taxes in the nation… $0.8655/gal (including Federal taxes). In Texas, the all-in tax is only $0.384/gal.

There’s also California’s unique, planet-saving, blend of gasoline… Governor Newsom could have just checked with the California Energy Commission.

What Drives California’s Gasoline Prices?

September 2022

Gasoline price changes in California are primarily driven by the cost of global crude oil and significant unplanned refinery outages. Currently, Russia’s invasion of Ukraine is causing crude oil prices to increase and remain volatile. Gasoline prices are highly sensitive, so any shift in supply and demand changes what you pay at the pump.

Filling up the tank in California also costs more since gasoline prices are higher on average than the rest of the United States for a few reasons. These reasons include the isolated nature of the state’s transportation fuels market, a special gasoline recipe that reduces air pollution, environmental program costs, and taxes.

An Isolated Market

California’s transportation fuels market is isolated, meaning that gasoline purchased in California is also refined in the state. Oil refineries and fuel distribution centers are isolated by time and distance from alternative sources to resupply during unplanned refinery outages. Price spikes can last longer for Californians because costs are higher, and the resupply time is longer.

[…]California Energy Commission

“An isolated market,” dependent on imported foreign crude oil and a handful of aging refineries, operating in the most industry-hostile environment imaginable. So, yes, when a refinery has to go offline in California, it’s a big fracking deal for Californians. Earth to Gov. Newsom: All refineries have to occasionally go offline.

Even if he’s too lazy and/or stupid to read the article, he could have looked at the pictures.

California Energy Commission

California Energy Commission

California Energy Commission

California Energy Commission

Abundant resources, abundantly stupid politicians

Petroleum

Foreign suppliers provide almost half of the crude oil refined in California.

California has about 4% of the nation’s total crude oil reserves, and it is the seventh-largest crude oil producer among the states.86,87 Reservoirs along California’s Pacific Coast, including in the Los Angeles basin, and those in the state’s Central Valley contain major crude oil reserves. The most prolific crude oil-producing area in the state is the San Joaquin basin in the southern half of California’s Central Valley.88,89 Although California’s crude oil production declined steadily since 1985, the state produced almost 131 million barrels of crude oil in 2021.90

Assessments of California’s offshore areas indicate the potential for large, undiscovered recoverable crude oil resources in the federally administered Outer Continental Shelf (OCS).91 Concerns about the risks of offshore crude oil and natural gas development after the 1969 Santa Barbara oil spill resulted in a permanent moratorium on offshore oil and natural gas leasing in state waters.92 Congress imposed a federal moratorium on oil and natural gas leasing in California federal waters in 1982. The federal moratorium expired in 2008.93 However, no California offshore federal lease sales have occurred since then and President Biden signed an executive order in January 2021 that suspends new oil and natural gas leasing on federal public lands and offshore waters.94,95 There are 22 older crude oil and natural gas production platforms that remain active in federal waters and 11 in state waters off the coast of California.96,97

California has about one-tenth of the nation’s total crude oil refining capacity and ranks third after Texas and Louisiana.98 A network of pipelines connects California crude oil production to the state’s 14 operable refineries, which are located primarily in the Los Angeles area, the San Francisco Bay area, and the San Joaquin Valley.99,100 California refiners also process large volumes of foreign and Alaskan crude oil. As crude oil production in California and Alaska declined, the state’s refineries increased their supply from foreign imports.101,102 Led by Ecuador, Saudi Arabia, Iraq, and Colombia, foreign suppliers provided almost half of the crude oil refined in California in 2020.103,104

California requires that all motorists use, at a minimum, a specific blend of motor gasoline called CaRFG (California Reformulated Gasoline) as part of an overall program to reduce emissions from motor vehicles. California refineries produce cleaner fuels in order to meet state environmental regulations.105 Refineries in the state often operate at or near maximum capacity because of the high demand for those petroleum products and the lack of interstate pipelines that can deliver them into the state. When unplanned refinery outages occur, the lack of CaRFG deliveries available by interstate pipelines means replacement supplies of CaRFG come in by marine tanker from out-of-state U.S. refineries or from other countries. It can take several weeks to find and bring replacement motor gasoline from overseas that meets California’s unique specifications.106

California is the nation’s second-largest consumer of refined petroleum products, after Texas, and accounts for about 9% of U.S. total consumption.107 In 2020, California was the nation’s largest consumer of jet fuel and the second-largest consumer of motor gasoline, after Texas.108,109 The transportation sector uses about 85% of the petroleum consumed in the state. The industrial sector accounts for about 12% of state petroleum use. The commercial sector consumes about 2%, and the residential sector uses less than 1%.110 Only about 1 in 30 California households heat with petroleum products, and most of those use hydrocarbon gas liquids (HGL) such as propane.111EIA

  • California has abundant oil & gas resource potential, both onshore and offshore. Politicians like Governor Newsom aggressively try to prevent the exploitation of those resources.
  • California requires a very specific blend of gasoline which must be refined within the state. Politicians like Governor Newsom are openly hostile to the companies that operate those refineries.
  • California is the second largest consumer of gasoline in the world’s #1 oil producing nation. Politicians like Governor Newsom have created an environment in which the largest state in world’s #1 oil producing nation has to import 56% of its crude oil from foreign nations.
  • “California Took on Big Oil and Won” – California blames “Big Oil” and passes more nuisance legislation, which will do nothing more than cost California consumers more money.

Governor Nuisance… “Here’s your sign”

Featured Image Source

https://babylonbee.com/news/gavin-newsom-named-u-haul-salesperson-of-the-year

Gavin Newsom Named U-Haul Salesperson Of The Year

U.S.·Sep 15, 2021 · BabylonBee.com

SACRAMENTO, CA – U-Haul has named Governor Gavin Newsom its Salesperson of the Year for the third year in a row after a record-setting sales quarter. 

“We are astounded by the growth we’ve seen in California,” said U-Haul’s Western Regional Director Fennick Buggstein. “Thanks to Gavin Newsom, literally every middle-class family has moved out of the state! It’s been impossible to keep up with demand! Also, most of our workers left the state too, which kind of stinks.” 

[…]The Babylon Bee