There is no single explanation for higher gas prices in the U.S. today. Higher prices at the pump in part reflect general inflationary pressures, but blaming inflation in general — or some supposed “war on fossil fuels” — on Democrats is frankly ridiculous partisan propaganda. As the OP points out, fossil fuel production has clearly reached record levels, even while energy efficiency in the U.S. has increased, and we continue to steadily grow solar and other renewables.
In my opinion, electric cars will probably not expand here as rapidly as many once hoped, or as fast as they are doing in China, for instance, but the U.S. auto industry can’t afford to give up EVs entirely — anymore than we can give up the fight to manufacture high-end chips here.
There are so many factors involved in determining final gasoline prices at the pump that no single explanation explains it. Certainly singling out any one factor, for example “taxes,” or “futures contacts” or “speculation” or the taking of super-profits by the oil majors after COVID disruptions misses the complex reality. All these are factors of more or less importance at different times.
Another of course is Geopolitics (Ukraine War, U.S. supplying Germany expensive LNG, U.S. sanctions against Venezuela and Iran, OPEC+ Gulf oil cartel restrictions), and financial / infrastructure issues (lag time and danger in risking capital for drilling and constructing processing plants and LNG transportation terminals) All told, however, there is no “shortage” of gasoline in our country.
There are important demand fluctuations in China and India and all economies undergoing periodic expansion and contraction that commenters often neglect. The U.S. has actually rapidly reacted to higher world demand and prices with much more exporting of oil and especially LNG onto the world market, and our economy is stronger as a result. Not so the Germans, of course. They and many Europeans are stuck paying the U.S. big money for now crucial LNG imports. There are cost price issues that are also essential, as Gulf Oil remains far cheaper to pump and transport than oil from other areas, and is far cheaper as a heating or industrial fuel than U.S. LNG.
My recommendation to all of us unhappy with (hopefully temporary) high prices at the pump: tighten your belt, drive less, buy a more efficient vehicle if you can. In the long run, short of major war or geopolitical catastrophe, the “real” price, efficiency and varieties of power and energy should decline.
If you are a real die-hard “America First” believer … show some courage and get out there and agitate. Tell your MAGA party leaders to pass a law to stop exporting LNG or processed petroleum products. Keep our precious resources at home!
See how far that gets you …
