The politics of gas prices vs the facts.

[Septua]

OPEC has announced a reduction in crude production which will lead to an increase in US gas prices. The Republicans love to jump on that news topic, blaming Biden for US dependency on imported crude oil. They rarely, if ever, tell the whole story.

It is true the US imports a lot of petroleum but the US also exports a lot of petroleum. In fact, exports about equal imports. And why is that?

That happens because of a combination of economics and chemistry. The economics are simple: overseas oil, even after shipping costs, is often cheaper than domestically-produced crude. That is because what oil people call "lifting costs," the cost of actually getting the oil out of the ground, are so much lower in some other countries. That, in turn, is down to a number of factors. Environmental and other regulations here play a part in that cost differential of course, but, contrary to what some would have you believe, they are far from the be-all and end-all in affecting prices.

Still, the U.S. probably wouldn’t be one of those client nations at all if it weren’t for the chemistry.

You see, the U.S. does produce enough oil to meet its own needs, but it is the wrong type of oil.

Most of the oil produced in the U.S. fields in Texas, Oklahoma, and elsewhere is light and sweet, compared to what comes from the Middle East and Russia. The problem is that for many years, imported oil met most of the U.S.’s energy needs, so a large percentage of the refining capacity here is geared towards dealing with oil that is heavier and less sweet than the kind produced here.

A coordinated, forward-looking energy policy over the last few decades would have targeted that issue through subsidies and incentives. That money has been paid out anyway: it wouldn’t have been hard to use it to make America truly energy independent. However, politicians, it seems, would rather keep a situation where periodic energy crises give them a cudgel with which to beat an incumbent. Lest you think I am making a partisan point here, current criticism is of a Democrat by Republicans, but the last time crude was at these levels it was Democrats criticizing George W. Bush, a Republican, for policies and actions that they said forced oil higher back then.

https://www.nasdaq.com/articles/america-produces-enough-oil-to-meet-its-needs-so-why-do-we-import-crude

So, the Republican attack on the Democrats about high gas prices is far from the simplistic argument they make on the talk shows. The US is actually the top producer of oil...imagine that.

https://www.eia.gov/tools/faqs/faq.php?id=709&t=6

But the Republicans never mention the truth. And they never mention Biden doesn't dictate oil prices nor have any control over oil production facilities.

[walkingman]

1. I thought they were Allies? Ok, maybe if gas prices climb again

because of this then it will push more people to buy EVs? How about lowering the speed limit to 55 like "Tricky Dick" again? That would really drive the Texas dually pickup folks insane 😂

[gratuitous]

2. I've also found it effective to quote oil company quarterly profits

And then ask, "Are you sure you're mad at the right people for high gas prices?" When oil companies are posting 10-figure quarterly profits, it appears some folks aren't feeling any of the pain of higher gas prices.