UPDATED 4:30 PM PT – Tuesday, February 2, 2021
Joe Biden’s energy policies are already hurting American households due to a gradual increase in gas prices across the nation.
Reports on Tuesday found Biden’s orders to block the Keystone XL pipeline and his ban on oil drilling and fracking on federal lands are reducing the supply of oil in the U.S.
We are reviewing the expected action to revoke the existing Presidential Permit for the Keystone XL pipeline. https://t.co/jE1B1ZHzRD
— Keystone XL Pipeline (@KXLPipeline) January 20, 2021
As a result, refiners are facing higher input costs and are passing them on to consumers at the pump. Gas prices are rising across the U.S., hitting $4 per gallon in California despite an ongoing economic downturn.
Analysts said Biden’s policies could push oil prices even higher next year.
“Yeah look, we think we can see oil prices into the 60s, WTI later this year, and stick there in 2022,” Brian Singer, senior oil and gas equity research analyst said.
Economists said Biden’s policies are a boom to major oil companies that will extract ultra high revenues amid low spending, while small independent drillers will face bankruptcy.
“Oil price in this environment in 50s to 60s is reasonable oil price, that said we’re not counting on it, we’re focused on capital discipline, cost management,” Pierre Breber, Chevron CFO said. “We’re focused on what we can control.”
Biden’s actions will increase America’s reliance on imported oil, generating a windfall of cash for Saudi Arabia and Russia.