It’s a political joke with little basis in fact and a coping mechanism to deal with high gas prices
If you’ve pumped gas anytime in 2021 you’ve probably noticed how much more you’re paying compared to last year.
And a few of you’ve might see a funny little sticker of Joe Biden placed on gas pumps, Biden often pointing at the price of gas or your total.
The two trends, if you haven’t figured it out, are related, but it’s not what you think.
Here’s an example below.
Republicans seem to get a kick out of it, too.
It’s popular, as of late, to blame Joe Biden for everything, whether it’s related to COVID, inflation, supply chain issues, and now, the rising price of gas.
During his Presidential run a key party line issue Biden promised to reverse was Trump’s earlier reversal of Obama not approving a permit for the Keystone Pipeline XL.
Trump is a supporter of our nation’s fossil fuel and coal industry and, despite opposition from Native American Tribes, which the pipeline would run through their native lands posing localized environmental hazards and health risks if issues arise, Trump sold the promise thousands of new jobs and a decreased dependence on foreign oil.
Now that gas prices are up, Americans are correlating (incorrectly) the two. If we had the Keystone Pipeline XL we, somehow, wouldn’t have high gas prices.
Thanks a lot Biden.
“The primary reason for this drop in crude oil prices was the pandemic. The pandemic drove the world’s oil market to become massively oversupplied, inventory dramatically increased and prices collapsed“
“In response to the low demand, major oil-producing countries cut down on their own oil production.“
“But the cut meant oil producers weren’t ready to meet the demand for crude oil once it renewed this year thanks to easing of COVID-19-related restrictions.“
Now that increased demand is up thanks to easing of COVID-19 lockdown restrictions, suppliers are racing to meet demand and the United States is dipping into its oil reserves, both raising the price for a barrel of crude oil and, as a result, the price of gas.
“But, we would’ve had a cheaper supply of readily available gas if we had the Keystone Pipeline XL!” The sticker placers and Facebook commenters would say.
But would we?
It took two years to build Phase 1 of the Keystone Pipeline. How would a pipeline extension, not even built and in operation, lower gas prices today?
Regarding Bidens other oil-related actions taken by his administration, it’s true they will affect “the outlook for fossil fuel energies” but that’s a long-term effect we have yet to see.
Blaming Biden, by cheekily placing stickers on gas pumps, isn’t really doing anything.
It is, however, pointing out that you know little about the simple concept of supply and demand.