President Joe Biden (D) has killed the Keystone XL Pipeline, is blocking oil production from Federal lands, killed oil production in northern Alaska, is working to kill fracking altogether, is working to kill American oil (and natural gas) production, and has given the go ahead to Russia’s Nord Stream 2 pipeline. In sum, he’s actively working to kill American energy independence.
All of that is driving up American citizens’ energy costs, and that is reflected in the market’s anticipation of spiking oil costs. Here are a couple of graphs illustrating that. They illustrate the expectation that oil will soon cost $100/barrel, after several years of $50-$65/barrel. The first presents the spike since the start of the year in the number of West Texas Intermediate $100/barrel futures contracts against a current $70 price.
This graph reflects the price of a $100/barrel call option on WTI for delivery in December this year and next.
The expectation of actual market pricing of $100 is rising, also, sharply enough to drive up the price of the option.
This is what expert traders (some of whom are trading on the trends themselves and not on underlying oil prices, to be sure) are seeing as the future price of oil for our citizens. Even if oil settles out at its current price of $70 or just a little higher (and the anticipations turn out to be overstated), this current price represents a sharp increase over the last several years, when Government wasn’t moving so zealously to restrict our nation’s oil supply.
This is what Biden has wrought for our nation’s energy supply and cost of energy.
https://pbs.twimg.com/media/E3mok6gWUAsdXIa?format=jpg&name=900×900
Then there’s the effect of higher energy costs reverberating throughout the economy …
And this bit:
Residents in President Biden’s home state of Delaware – which he represented in the Senate for more than three decades – saw a $15 decrease in their utility bills in 2018, replacing the anticipated $65 increase.
The reason was the Tax Cut and Jobs Act, according to the Delaware Public Service Commission, in announcing the rate cut from Delmarva.
And
Delaware is one of 38 states to pass along the corporate tax rate cut to customers, according to data compiled by Americans for Tax Reform.
Although, in President Joe Biden’s (D) fantasy world, none of that happened.
[Biden, speaking through his] White House press secretary Jen Psaki dismissed this concern when asked about it in April.
“Well, I would say that there’s no reason that that is what needs to happen. We have evidence of what happens,” Psaki said. “Back in 2017, when Republicans prioritized tax cuts for big corporations over investing in working people, there were many arguments made about what the impact would be: the benefits would be passed on to consumers, they would invest in R&D, there would be jobs created. None of that happened.
The Progressive-Democrats’ fantasies are a real-world danger.
Eric Hines