The cavernous hole in American energy policy

[rangerrebew]

The cavernous hole in American energy policy
By David Holt |September 4th, 2023|46 Comments

In an abundant year for American energy policy ideas that are the equivalent of shooting the economy in the foot, one stands out for its simplicity: the giant, empty caverns known as the Strategic Petroleum Reserve (SPR).

When gasoline prices surged in 2021, the Biden Administration first started tapping the SPR. It was just 11 months into a term that had seen the rapid rise in energy prices following the Administration’s open declaration of hostility toward the American oil and gas industry. The Russian invasion of Ukraine goosed prices higher, and the Administration again turned to the SPR in 2022 in an effort to show America that it was doing something to alleviate the pain at the pump. It drained the SPR to the lowest level in 40 years, while continued higher energy prices contributed to the highest inflation in 40 years.

The Administration bragged about the oil depletions as “record releases,” which is like gloating about emptying the household savings account to invest in a worthless boondoggle. That is exactly what happened; the SPR releases provided a few days of temporary relief before prices shot higher. As energy prices stayed high, inflation worsened.

https://www.cfact.org/2023/09/04/the-cavernous-hole-in-american-energy-policy/

[Smokin Joe]

While spending is a monster in the inflation cages, the real rampant critter is the cost of moving, well, everything, whether by ship, rail, or truck, Biden virtually guaranteed on day one that that cost was going to increase. 

At the root of the inflation we are experiencing is the surcharge for moving everything from raw materials to finished goods, and the increase in utility costs as part of the cost of production.

In this he guaranteed suffering for every American who can't vote themselves a raise from the public coffers.