Higher Gasoline Prices just in time for Christmas

[dan_s]

The U.S. is currently in the grip of a supply chain crisis. The Biden administration — already hopelessly incompetent in dealing with regular presidential duties, such as withdrawal from Afghanistan, border enforcement, and COVID-19 — has not the slightest clue how to fix it.

Gas prices hit a seven-year high, and Biden remains as clueless as ever
by Washington Examiner, October 13, 2021

Under former President Donald Trump, the United States achieved effective energy independence. It became a net exporter of petroleum products and, for a brief moment in time, crude oil.

In terms of geopolitics, the U.S. easily achieved what had been referred to as North American energy independence.

This meant U.S. policy was no longer subject to the vagaries of Middle Eastern politics — a big factor in Trump’s achievement of reconciling Israel with key Arab neighbors. It also meant that Russia, another world-leading fossil fuel producer, had been limited in its use of hydraulic despotism in the service of its malign agenda.

Over a 10-year period, the shale revolution also created a vibrant and prosperous industry in the U.S. reviving rural areas and bringing top-paying jobs to those involved. Two consecutive presidents had the good sense to stay mostly out of its way.

In fact, former President Barack Obama has tried to take credit for the invention of fracking and horizontal drilling , or perhaps even for putting all that oil under the ground in the first place.

Now, President Joe Biden is trying to throw away the independence, prosperity, and carbon emissions reductions that fracking has conferred upon the nation. All this just to appease environmental extremists whose support he needs and who think it is possible to wish away humanity’s need for abundant energy.

The price of this idiocy is being reflected at the pump every time you fill up. You may have noticed the price of gasoline is up almost 50% from where it was a year ago. It is now at its highest point in seven years.

Biden, whose first acts in office included a ban on domestic oil exploration on federal land and the cancellation of a needed oil pipeline, has responded to this situation not by encouraging more domestic production. Instead, he repeatedly approaches OPEC, hat in hand, begging the cartel and even the Russians to produce more oil for him. To see him beg foreign enemies to save his political standing is genuinely pathetic and degrading.

There is ample capacity for additional domestic production. Oil production in late 2019 reached significantly higher levels than where it is now. Under better circumstances, the higher prices would inspire still more production within the U.S.

But Biden appears to believe that as long as oil is coming from somewhere else, it doesn’t affect the climate. He may not be sharp enough to realize the joke is on him.

The U.S. is currently in the grip of a supply chain crisis. The Biden administration — already hopelessly incompetent in dealing with regular presidential duties, such as withdrawal from Afghanistan, border enforcement, and COVID-19 — has not the slightest clue how to fix it.

Imported oil arrives in tankers. The stack-up of ships outside the nation’s ports probably means that even a sudden burst of OPEC generosity will not improve his standing.

[dan_s]

U.S. home heating bills seen much higher this winter, EIA says

(Reuters) -U.S. consumers will spend more to heat their homes this winter (October-March) than last year due mostly to higher energy commodity prices, the U.S. Energy Information Administration (EIA) projected in its Winter Fuels Outlook on Wednesday.

Households that use propane and heating oil will likely spend much more than last year, EIA said.

EIA said it based its cost estimates on expectations of high retail energy prices — many are already at multiyear highs — and on forecasts for slightly colder weather this winter boosting household energy consumption over last year.

Last year, many energy prices reached multiyear lows due to coronavirus demand destruction. The wholesale price of natural gas, the most used heating fuel in the United States, averaged just $2.11 per thousand cubic feet (mcf) in 2020, their lowest in 25 years.

The main reason wholesale prices of natural gas, crude oil, and petroleum products have risen is that fuel demand has increased from recent lows faster than supply, in part because of economic recovery after the pandemic, EIA said.

Depending on where in the country people live, EIA said residential costs this winter - residents' costs are higher than wholesale prices - will rise to about $11-$14 per mcf for natural gas, about $2.50-$3.50 per gallon for propane, and almost $3.50 per gallon for heating oil. < Propane prices will go MUCH HIGHER if we have a cold December and we will likely see some areas run out of propane at any price.

That compares with last winter's residential costs of around $10-12 per thousand cubic feet for natural gas, $1.50-$2.50 per gallon for propane, and $2.50 per gallon for heating oil.

EIA said it will provide more details when it releases its Short-Term Energy Outlook later Wednesday.