President Biden orders 50 million barrels of oil to be released from the strategic reserve in an effort to reduce energy costs. LSU Center for Energy Studies, Executive Director David Dismukes said the move is a classic example of do-nothing politics.
“I think a reaction to the negative ratings that the President has right now with regards to energy policy-related issues, and financial consequences of kind of the steps that they’ve been taking since they took office this past January,” said Dismukes.
If you’re hoping this means you’ll save at the pump for Thanksgiving, no such luck. The barrels of oil to be released will not hit the market until mid to late December. Dismukes estimates that prices, which are already trending down, towards the end of the year will correct as demand also decreases.
“Even the administration’s own Department of Energy projects that as well, so this is clearly, I hate to say this but, clearly a cynical move on the administration’s part,” said Dismukes.
In addition to supply versus demand driving up prices, Dismukes said it’s not a favorable market to invest in petroleum because of clean energy policies enacted by the Biden administration, for example, the moratorium on new oil and gas leases, which was eventually overturned.
“As long as we continue to see this, the President is going to have to reconcile his policies with these higher gasoline and domestic energy prices,” said Dismukes.
In addition to gasoline, Dismukes warns proposed Biden energy policies aimed at taxing the industry will continue to drive up energy costs and consumers should expect higher natural gas prices to heat their homes this winter.
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