How gas prices are determined
Drilling for more oil in the United States will not lower gas prices because the production of U.S. oil does not set the price of gas—the global price of oil does.
American Oil Corporations are Privately Owned. The Government does not own them. Almost all oil drilled and obtained in America is privately sold and exported on the global market and does not go to America. Therefore the term "Energy Independent" is really nonsensical. Some people use the term to mean that we simply consume less oil than we export.
Oil and gas are global commodities, subject to the whims of notoriously volatile global markets. Their prices are particularly sensitive to geopolitical events and investor sentiment.
FACT CHECK FALSE: Gas prices were "$1.86 when I left" the White House. ~Donald Trump, December 8, 2021 interview with Hugh Hewitt. Since then, even after being debunked, Trump has repeated this lie hundreds of times over 4 years.
The national average price for gasoline when Trump left the White House was $2.38, or about 28% higher than what he said it was.
According to recent data from AAA, the average price of gas in the United States today is around $3.23 per gallon. (9/13/2024)
So what were the reasons why gas prices increased in 2021?
As COVID-19 restrictions eased and economies rebounded rapidly, demand for oil spiked. Pandemic-related supply chain disruptions exacerbated the situation, causing gas prices to go up.
Oil markets were roiled when Russia, the #3 producer, a petro-state, whose exports supply 8 percent of the global oil supply, used its fossil fuel earnings to finance another unjust war. This war had a major impact global markets as oil supply decreased.
Donald Trump Publicly Forced OPEC to Slash Oil Production to Raise Gas Prices and then Bragged About it Before Leaving Office to Hurt Joe Biden's Presidency and Help His Upcoming Campaign
VIDEO: Apr 02.2020 Oil Deal? - Trump Expects Saudis, Russia Will Cut Oil Production - Bloomberg Television
We have primary dated empirical evidence, receipts, and admissions from Donald Trump bragging about his scheme to explode gas prices on America
Trump left this tweet up:
VIDEOS of Trump Admitting it
Dean Baker | Senior Economist for The Center for Economic and Policy Research (CEPR)
Trump demanded that Saudi Arabia cut back production back in 2020. According to Trump, he worked out a deal where OPEC producers would all agree to reduce their output. The reason we now have high oil prices is that they have not returned their production to pre-pandemic levels. Hey, by the media’s standards of what makes a politician responsible for an event in the world, this is practically airtight.
It’s more than a bit bizarre that Donald Trump literally boasted about getting oil producers to cut production, but somehow President Biden is held responsible for high gas prices.
As the Organization of the Petroleum Exporting Countries and its allies came to an agreement on a record cut in oil production, U.S. President Donald Trump may have struck his “biggest and most complex deal,” according to oil expert Dan Yergin.
Commenting on the deal that has been struck by OPEC+, Yergin said it has “bought time” and avoided a “disaster” for the oil industry.
CNN: Oil prices spike by a record 25% as Trump talks up huge production cuts and Saudi Arabia calls for OPEC meeting 4/02/2020
The deal will reduce output by 9.7 million barrels a day. While significant, the cut falls far short of what is needed to bring oil production in line with demand APR 12 2020
CNBC: OPEC and allies’ oil production cut is Trump’s ‘biggest and most complex’ deal ever: Dan Yergin APR 13 2020
Reuters Special Report: Trump told Saudi: Cut oil supply or lose U.S. military support April 30, 2020
OPEC Slashed Oil Production Again, Just before America's 2022 Mid-Term Elections to Try to Help Republicans
SAUDIS SOUGHT OIL PRODUCTION CUT SO DEEP IT SURPRISED EVEN RUSSIA. OPEC+ slashed oil production following a Saudi pressure campaign that experts say aims to hurt Democrats in the midterms
THE SAUDI-LED oil cartel OPEC+’s announcement earlier this month that it was cutting 2 million barrels of oil per day — a move that would drive up the price of oil just a month before midterm elections — rankled Democrats in Washington. They accused Riyadh of aligning itself with Russia, another powerful member of OPEC+, which would indeed profit off the move. “What Saudi Arabia did to help Putin continue to wage his despicable, vicious war against Ukraine will long be remembered by Americans,” said Senate Majority Leader Chuck Schumer.
But Saudi Arabia actually pushed to cut oil production twice as much as Russian President Vladimir Putin, surprising the Russians, two Saudi sources with knowledge of the negotiations told The Intercept, suggesting that Riyadh’s motives run deeper than what top Democrats want to admit. The sources requested anonymity, fearing reprisal by the Saudi government.
ENERGY: RECORD OIL PRODUCTION UNDER BIDEN/KAMALA HARRIS
37,000 Permits are currently being used. At the end of 2021, there were 9,173 approved applications for drilling permits on federal and tribal lands, according to the Bureau of Land Management (BLM).
SWITCH TO 5 YEARS: https://ycharts.com/indicators/us_crude_oil_field_production
The Joe Biden and Kamala Harris Economy Produced More Oil Than Trump's Regime and the most in World History.
April 2024: Trump caught publicly soliciting a 1 Billion dollar bribe pay-off from oil CEOs, In return he will abolish America's transition to Green Energy.
Shocking revelations about what Trump offered Big Oil executives at their elite Mar-a-Lago gathering sure smell of a direct quid pro quo. Democrats need to expose this.
CREW files criminal bribery complaint on Trump meeting with oil and gas executives
Oil CEOS caught hurting America to help Trump's Campaign.
2024 Trump Donor CEO Billionaires caught colluding with OPEC to inflate gas prices and influence the election
The Mega-Donor Who Colluded With OPEC
From ExxonMobil's long-running climate denial to Pioneer's recent price-fixing, it's clear this rogue industry's business model is deny, deceit, and delay.
More rampant gas price gouging: Exxon reaps obscene $56 billion profit for 2022 on backs of hard-working Americans
SAN FRANCISCO – ExxonMobil posted record windfall profits in 2022 of $56 billion, according to the oil giant’s fourth-quarter earnings report, released Tuesday. Hard-working Americans getting fleeced at the gas pump are to thank for the company’s obscene earnings.
The financial report by Exxon, the largest U.S. oil company by market cap, comes days after Chevron posted its fourth-quarter earnings of roughly $36 billion in 2022.
These Top 5 Oil Companies Just Raked In $35 Billion While Americans Pay More at the Pump
While families on tight budgets struggle to pay the sky-high price of gas, these five oil companies more than tripled their profits in the first quarter of 2022.
18 Oil Companies Targeted in Price Gouging Lawsuit
ICYMI: Big Oil is Spending Millions on a Campaign Lying About Gas Prices Instead of Passing Down Savings to Consumers
Republicans Collude With Oil Industry against American Families
Republicans are paid by oil CEOs to allow price gouging
The Republican Party is trying to blame President Biden for spiking gas prices, even though it’s the Republicans who have blocked action.
Just like the Border Crisis and Inflation, Gas Prices are a major Political Weapon of Republicans, and they will do anything to stop Democrats from solving them.
As Democrats Push Price-Gouging Bill, Voters Show Bipartisan Support for Legislation That Would Bar Companies From Charging Excessively High Energy Prices
The Keystone XL pipeline lies and conspiracies
What Is the Keystone XL Pipeline?
How a single pipeline project became the epicenter of an enormous environmental, public health, and civil rights battle.
Myth: The cancellation of the Keystone XL pipeline caused high gas prices.
Fact-check: We can safely say the Biden administration’s decision to cancel the permit for the Keystone XL pipeline (KXL), an extension of the fully operational Keystone Pipeline System, had no impact on current oil prices.
Yes, allies of the oil and gas industry—from Fox News hosts to former vice president Mike Pence—are claiming that the pipeline would have buffered Americans from high gas prices and reduced U.S. reliance on Russian oil. That’s false on multiple levels.
First, it would have taken years for KXL to be fully operational, so its increased supply would have no bearing on current gas prices. Second, the 830,000 barrels of tar sands oil it would have carried daily were intended to head directly to refineries on the Gulf Coast—and then likely to markets overseas.
Claim: “Revokes Keystone Pipeline, 57,000 go jobless.”
Facts: Biden did sign an executive order rescinding a March 2019 permit for the Keystone XL Pipeline — a pipeline slated to run from Alberta, Canada, through the U.S., to Nebraska. The executive order said “the significance of the proposed pipeline for our energy security and economy is limited” and that the U.S. would “prioritize the development of a clean energy economy, which will in turn create good jobs.”
But the pipeline project was not employing “57,000,” as the meme claims.
Terry Cunha, a spokesman for the company behind the pipeline, TC Energy, told us in an email that 1,000 unionized jobs will be lost in the coming weeks as a result of the permit being revoked.
Those were construction jobs — and therefore temporary.
“The project was prepared to hire 11,000 union workers during the construction of the project,” Cunha said, citing an October 2020 press release that said the project expected to employ 11,000 Americans in 2021.
A 2014 State Department report on the pipeline estimated that, after construction, the project “would generate approximately 50 jobs during operations” — 35 permanent employees and 15 temporary contractors.
The Keystone XL pipeline has nothing to do with gas prices
Biden’s top economic advisor says restarting the Keystone XL pipeline now won’t lower oil prices
Keystone XL pipeline report revives misleading claims about job creation
Fact Checks
Myth: Gas prices are rising because Biden banned oil drilling.
Fact-check: President Biden did not ban oil drilling. In fact, his administration issued more than 3,500 new permits to drill on federal lands in its first year. That’s 34 percent more than the Trump administration did in its first year.
Myth: Increasing oil and gas production will help secure U.S. energy independence.
Fact-check: Again, oil and gas are global commodities, and there is no way for the United States to wall itself off from swings in global price and supply. As long as we rely on fossil fuels, violent petro-states like Russia will use fossil fuel production as political and financial leverage. Consumers, many of whom were already struggling because of the pandemic, will face continued pain at the pump.
So if you thought that more production would result in energy independence and that meant gas prices would go down, you would be very disappointed.
The only way to permanently protect ourselves from the volatility of the global oil market—and soaring gas prices—is to opt out entirely and transition to both clean energy sources and the electric vehicles that run on that clean energy. Steep federal investments that build out renewable energy infrastructure and make EVs the norm will ultimately provide a far more stable energy market for all and help protect the only planet we’ve got.
Further Research
Exposing Donald Trump, the Trump Crime Family, and the Republican Terrorist Organization behind him
How Donald Trump Deliberately Sabotaged America Just Before Leaving Office and During the Past 4 Years: Covid-19, Border Crisis, Afghanistan, Gas Prices, and Inflation
How Donald Trump Deliberately Caused the Border Crisis, Sabotaged the Immigration Courts, and Prevented America From Fixing it so He Could Use it as a Political Weapon to Help His Campaign (3 Parts)
Part 1: How A President Trump Deliberately: Caused the Border Crisis, Destroyed Latin American Economies, Sabotaged the Immigration Courts, and Failed at Securing the Border
Part 2: How Trump prevented Republicans and Biden/Harris From Fixing the Border Crisis so he Could use it as a Political Weapon to Help his Campaign (In progress)
Part 3: Trump and Republicans Flood the Media with Thousands of Border Lies (In progress)
Part 1: Trump's 920 Page, "Project 2025" Nazi Manifesto Blueprint, Dictatorship Plan, and Authoritarian Platform If He Wins the 2024 Election
PART 2: Why Donald Trump is Suddenly Lying and Pretending to be Running From His Own 920 Page, "Project 2025" Nazi Manifesto Platform
How Donald Trump used the pandemic to mass murder hundreds of thousands of How Donald Trump Deliberately Used the Covid-19 Coronavirus Pandemic to Mass Murder Hundreds of Thousands of American Citizens - See the Documentaries, Research, and Studies
Donald Trump's Sexual Deviance Addictions and Serial Sexual Crimes
Donald Trump's 15 year close friendship with Jeffrey Epstein and Ghislaine Maxwell, as they ran the largest human trafficking pedophile rape ring in history and his scheme to help them
Why you should vote for Kamala Harris. See her full Resume, Achievements, Accomplishments, Plans, and Platform
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