One Year In: Biden Tanks American Energy

KEY TAKEAWAYS

• Inflation is at a four-decade high – compared to a year ago, prices for gasoline are up 58% and natural gas up 25%.
• Instead of embracing inexpensive, reliable American energy, President Biden caved to the radical left and embraced Green New Deal policies.
• President Biden and Democrats in Congress are pushing a host of policies in their reckless tax and spend spree that will make inflation even worse.

As we approach the end of President Biden’s first year in office, inflation has reached a four-decade high, led by energy prices. Not only are Democrats trying to skirt responsibility for the pain their inflation has inflicted on family budgets, they are continuing to push the failed policies that helped create this abysmal situation.

Biden’s Failed Energy Strategy

For the first time since 1952, America became a net energy exporter in 2019. The United States led the world in oil and natural gas production. As a result of Republican policies, America’s energy sector was thriving, and the nation no longer needed to rely on hostile nations for supplies. These successes were imperiled once President Biden took office in January.

Energy Cost Increases Since Last Year

On the first day of his presidency, he made it clear that he had caved to the radical left and embraced their Green New Deal policies. President Biden issued sweeping executive orders to cancel the Keystone XL pipeline and prohibit new oil and gas leases on public lands and waters. The Department of the Interior later issued a report arguing that fees on domestic energy producers should be increased. It said updates to the leasing program are necessary to “ensure fair return to taxpayers,” though these fees will just be passed onto consumers who will have to pay more for gasoline for their vehicles and fuel to heat their homes.

This fall, President Biden traveled to the United Nations climate change conference in Glasgow, Scotland. There he reiterated his pipe dream to cut greenhouse gas emissions by as much as 52% from 2005 levels by 2030. His administration also is pursuing stringent methane regulations for producers of oil and gas that will wallop consumers in the half of U.S. households fueled by natural gas. The administration is taking this costly approach despite steps by the industry that cut emissions 16% from 1990 to 2019 while increasing natural gas production 91%. As of 2019, U.S. carbon emissions were down about 14% from 2005, largely because of greater natural gas use. Meanwhile, countries like China and Russia continue to ramp up emissions.

The Biden administration’s policies have led to headaches for American families. According to the Bureau of Labor Statistics, energy costs are rising, with the energy index up by 33% compared to this time last year. Prices for gasoline are up 58%, the largest annual increase since 1980. President Biden’s “solution” to stem this crisis was to release 50 million barrels of oil from the Strategic Petroleum Reserve, after which Democrats celebrated a 2 cent drop in prices. Natural gas prices have grown by 25%, and prices for propane, kerosene, and wood by 34%. Electricity rose by only 7%, but if Democrats succeed in their efforts to electrify our transportation sector, buildings, and the federal government, increased demand will likely lead to much higher prices.

Democrats go big on bad ideas

Instead of acknowledging the havoc their disastrous policies are wreaking on American families and the economy, the left has spent the last several months hawking its reckless tax and spend spree. An analysis by the Congressional Budget Office found that if all the “temporary” programs in the bill are extended, it could cost $4.9 trillion over 10 years and lead to a $3 trillion addition to the national debt.

The bill imposes new and higher fees on energy producers, as well as a new natural gas tax. It gives regulators the green light to move forward with onerous climate regulations. Democrats’ plan dedicates $29 billion for a “national climate bank” to support liberal environmental projects. It provides billions of dollars to create a “civilian climate corps” so the federal government can hire 300,000 climate activists while there are already 11 million unfilled jobs across the country. These initiatives will mean more regulation and higher businesses costs, which will ultimately be paid by consumers.

The Biden administration has reluctantly acknowledged that inflation and high prices are straining American families. Now, it’s time for Democrats to wake up and abandon their failed energy policies and the rest of their reckless tax and spend spree.