As oil and gas prices in the country are rising sharply, leading industry experts have a proven solution for Biden to tackle inflation.
According to experts, Biden can reduce the prevailing oil inflation by increasing domestic oil production and reducing government intervention in oil manufacturing.
Proven Solution of Oil Inflation Found
On Tuesday, the American Petroleum Institute (API) recommended Biden follow ten steps with the immediate potential to ease the burden on American consumers.
The most important recommendation, for Biden, in this regard is to announce a five-year program aiming at oil and gas leasing.
When Biden tried to lure progressive voters, he announced imposing a ban on federal oil and gas leasing during his presidential campaign. He even signed an executive order to do so during his first week in the White House.
However, a court paused that hold, forcing the administration to resume the lease at revised rates.
But Biden's decisions on leases, cancelling of critical infrastructure projects and other boneheaded moves are absolutely counterproductive to increased supply. Also from API: https://t.co/oADfeyXuMP pic.twitter.com/IPCwzWKDVB
— Jack's Rhetorical Buzzsaw (@JackMartensite) June 12, 2022
Currently, the Biden administration is lagging in introducing a new leasing plan to replace the existing plan set to expire at the end of this month.
Similarly, the API also suggested Congress make special designations for crucial energy projects, coupled with accelerating the speed of approval for such projects.
Not only this, but the administration should also try to keep its hands off the new projects by refraining from issuing climate-related risk disclosures, the API added.
According to the president of the API, Mike Sommers, the administration has to focus on long-term strategies in order to bring the country out of the crisis.
Any approach which believes fossil fuel consumption has to be eliminated by 2030 is bound to fail, Sommers claimed.
Biden Trying to Tax Oil Companies Further
Although Sommers indicated American domestic oil production is increasing slowly, many roadblocks are currently in place. This restricts the government’s capacity to bring immediate change.
Some of the most pressing concerns for the administration, according to Sommers, are the difficulty acquiring steel, finding people for such labor-intensive jobs, and approving capital from liberal-dominated Congress.
While announcing his proposed framework, Sommers stated the country is in dire need of revising the current oil and gas policies by reducing “duplicative regulation.”
The rising oil inflation is also pressuring Biden to turn to technocrats, instead of appeasing his own political factions for momentary gains.
However, the president seems unmoved by all the calls to inculcate experts’ opinions in policy making.
Instead, he recently reemphasized oil companies to pay more taxes and asked Congress to tax some of the biggest oil giants.
Biden admin wants to impose taxes and climate regs, already showed they want a ban, and banks won't lend. So oil companies are very discouraged by Biden policies from going fwd. Biden made this situation; it's on him.https://t.co/Zi1GQlO8Py
— Patrick McGuinness (@mcguinnessfortx) June 8, 2022
If this happens, it is likely to further strain the oil sector, which will significantly raise prices.
Recently, Biden claimed oil companies are buying their own stocks back and involved in historical price gouging.
Sommers also discouraged any possible attempt by the president to further tax oil industries.
He stated it would be “really insane” for the administration to tax oil companies at a time of energy scarcity.