By Crime and Cask News
Gas prices have been a hot topic of debate and concern in the United States, especially as they climbed to notable highs during the early years of President Joe Biden’s administration. While political opponents often seek to pin the blame squarely on current leadership, the reasons behind rising gas prices are complex and involve global dynamics that precede any single administration. To understand why gas prices rose under Biden, it’s essential to look at the interconnected factors, including decisions made during former President Donald Trump’s term, global supply and demand, and market reactions.
The Trump Administration’s Role in Oil Production Cuts
During Donald Trump’s presidency, the global oil market faced a crisis due to the COVID-19 pandemic. In early 2020, a combination of drastically reduced demand and a price war between Saudi Arabia and Russia sent oil prices plummeting. In response, Trump intervened diplomatically, urging major oil-producing nations, including OPEC and Russia, to reduce oil production.
The result was a historic agreement by OPEC+ to cut oil production by 9.7 million barrels per day starting in May 2020. These cuts were the largest ever agreed upon and were aimed at stabilizing a market that was flooded with excess supply. While successful in preventing a collapse in oil prices at the time, these production cuts also led to a reduced global oil supply.
As the world began to emerge from the pandemic and economies reopened, demand for oil and gas rebounded rapidly. However, the supply was still constrained due to the ongoing production cuts by OPEC+, leading to a classic supply-demand imbalance that drove oil prices—and consequently gas prices—up.
The Biden Administration and Rising Gas Prices
When Joe Biden took office in January 2021, the effects of the 2020 production cuts were still playing out. With the global economy recovering faster than expected, demand for oil surged, but the supply was lagging. This situation put upward pressure on prices. Moreover, OPEC+ took a cautious approach, gradually increasing production to avoid another price collapse, which further contributed to sustained high prices.
Other factors also played a role in the rising gas prices, including supply chain disruptions, geopolitical tensions, and natural disasters affecting oil production infrastructure. For example, hurricanes in the Gulf of Mexico temporarily shut down significant portions of U.S. oil production, exacerbating the supply shortages.
Drill Baby Drill
Under the Biden administration, the United States has seen record levels of domestic oil production, surpassing the output of previous years. Despite criticisms from some sectors that President Biden’s policies are anti-fossil fuel, the reality is that American oil production has reached unprecedented heights during his time in office. This surge in drilling and extraction can be attributed to a combination of market dynamics, technological advancements, and ongoing permits and projects initiated in previous administrations. The increase in oil production under Biden reflects the complexity of energy policy and market demands, illustrating that even in an administration focused on transitioning to renewable energy, traditional oil and gas industries remain robust and critical to the country’s energy landscape.
At its peak, U.S. oil production under the Biden administration reached approximately 13 million barrels per day. This level of production reflects a significant increase from previous years, making it one of the highest daily outputs in U.S. history. The high production levels were driven by strong demand, market conditions, and continued development of shale oil fields, particularly in areas like the Permian Basin.
More Fracking Than Ever
Fracking, or hydraulic fracturing, continues to be a significant method of oil and natural gas extraction in the United States. As of 2024, fracking activity remains high, particularly in prolific shale regions like the Permian Basin in Texas and New Mexico, the Bakken formation in North Dakota, and the Marcellus Shale in Pennsylvania. Current fracking activity has contributed to the U.S. reaching and maintaining high levels of oil production, around 13 million barrels per day.
Despite ongoing debates and environmental concerns, the demand for energy, market prices, and technological advances have kept fracking a central part of U.S. energy production. The number of active fracking wells and drilling rigs remains robust, supported by both domestic needs and global energy markets. Furthermore, improved drilling techniques and efficiency have allowed for increased output with fewer rigs compared to previous peaks, demonstrating the industry’s adaptability and resilience.
Former President Donald Trump has frequently criticized President Joe Biden on the topic of fracking, often accusing him of wanting to end the practice and eliminate jobs in the energy sector. During his 2020 presidential campaign and in subsequent public appearances, Trump claimed that Biden’s environmental policies would lead to the end of fracking, thereby harming the U.S. economy and leading to higher energy prices.
Trump’s Criticism of Biden Over Gas Prices
Despite the complex and multi-faceted reasons for rising gas prices, Donald Trump has not hesitated to blame his successor. In various statements and interviews, Trump has criticized Biden’s energy policies, arguing that they are the primary cause of high gas prices.
During a speech in October 2021, Trump stated: “Gas prices are skyrocketing, and it’s all because of Joe Biden’s war on American energy. We were energy independent when I was in office, and now look where we are.”
In a separate interview, Trump claimed: “Biden’s policies are hurting Americans at the pump. We need to unleash American energy, not shut it down. The Biden administration’s anti-energy agenda is causing pain for everyone.” These are at best, highly inaccurate, at worst, flat-out lie.
Conclusion
While it is politically expedient to blame current leadership for high gas prices, the reality is that the causes are often rooted in decisions made by previous administrations and global market dynamics. The production cuts facilitated by Trump’s administration in 2020 were essential to stabilizing the oil market at the time but also set the stage for higher prices as the world recovered from the pandemic. As with many economic issues, gas prices are influenced by a combination of past and present factors, making it clear that rising gas prices under Biden cannot be attributed to one administration alone.
Gas prices in South Carolina have stabilized somewhat and as of today, September 6th, 2024, the average price per gallon for gasoline is $2.91 a gallon. In 2020, the average price of gas in South Carolina was $1.90 per gallon on December 5, and $2.30 per gallon on January 15. Almost $1 dollar per gallon higher than 2020, but now you know why, it wasn’t Joe Biden’s policy.
At Crime and Cask News, we strive to provide a balanced view, recognizing the complexities of global economics while holding leaders accountable. Understanding the interplay of these factors is crucial for informed public discourse on energy policies and their impacts on everyday life.