by John Stossel
The price of gas keeps rising.
“The reason for that is because of Putin’s war,” said President Joe Biden.
But that’s impossible. Most of the price rise came before Putin attacked Ukraine.
So some politicians simply blame “corporate greed.”
Sen. Sheldon Whitehouse accuses the oil industry of collecting “excess profit.”
Sen. Elizabeth Warren even introduced a bill to ban “price gouging.”
This is just economic ignorance, as my new video explains.
“If big oil could raise prices anytime they wanted and get away with it, then why were they so cheap in 2020, 2019, 2018?” asks the Competitive Enterprise Institute’s Ben Lieberman.
Lieberman points out that companies are always greedy. Greed didn’t just start now. They were just as greedy when gas prices fell in 2019 and early 2020.
“It all comes down to cutting back on supplies,” says Lieberman.
It’s not complicated. Prices change because of supply and demand.
During the COVID-19 pandemic, fewer people drove, and demand for gasoline dropped. So did its price. Oil drillers then did less drilling. Now demand is up because people are driving again.
But it takes time for producers to adjust.
“It takes months, not days, for a company to increase production,” says Biden.
I’m relieved that the president understands that, but he ignores how his own policies reduce production and raise the price of gas. He didn’t mention that when he canceled a long-planned sale of offshore oil rights this week.
Activists want Biden to also kill a pipeline that would bring oil from Canada to Wisconsin. They’ve already delayed it five years. They delayed the Keystone Pipeline for 16 years, until Biden killed it altogether.
This is so dumb. Stopping pipelines doesn’t even help the environment. Oil still gets shipped, but by truck, train and barge. That leads to more oil spills.
At least one congressman is as foolish as the activists.
Last fall, at a congressional hearing titled “Exposing Big Oil’s Disinformation Campaign to Prevent Climate Action,” grandstanding California Rep. Ro Khanna scolded oil executives for producing too much oil.
“Are you embarrassed as an American company that your production is going up?” Khanna said to Chevron CEO Michael Wirth.
“Demand for energy is going up in the world,” Wirth responded, reasonably.
“Would you commit to reducing the production of oil?” Khanna asked ExxonMobil CEO Darren Woods.
“We’re committed to lowering our emissions,” Woods answered.
“I’ll take that as a ‘no,'” sneered Khanna.
Hilariously, now that gas prices are up, Khanna goes on TV to complain that oil companies don’t produce more oil. “They’re still not increasing the production!” he whines.
I tried to interview Khanna about his hypocrisy, but he won’t talk to me.
“It’s amazing what $4 a gallon gasoline in an election year will do to cause some people to change their minds!” says Lieberman.
Still, the environmental activists aren’t totally crazy.
“We have to protect the Earth,” I say to Lieberman. “Sometimes the market isn’t the best director.”
“There is pollution, and there is a reason to address it,” Lieberman responds, “But we have to be realistic … these threats are repeatedly exaggerated.”
They sure are.
“(But in) the public debate, you’re losing. They’re winning,” I point out.
“At $4 a gallon gasoline, I think we’re seeing a rethinking of the climate agenda,” Lieberman replies.
Biden, at his State of the Union address, did say his top priority would be “getting prices under control.”
But he can’t get gas prices under control without more use of those hated fossil fuels.
“The Biden administration either has to choose between affordable energy or the climate agenda,” says Lieberman. “It can’t do both.”
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Stossell’s chin keeps getting more and more bruises from the balls of the oligarchy he shills for. Supply and demand, John? Explain the stock market in the last month. Too much money ought to be chasing too few stocks, according to your theory. Go to a Home Depot, John. Or a Walmart. They have more goods than customers. If it were supply and demand, it should look like Black Friday everyday. A stick of three-quarter inch PVC at Home Depot used to sell for under $2 less than a year ago. Now it’s 7 Bucks. I believe that proves 8.5% inflation to be exactly accurate. The people who control retail prices also currently control commodity prices. And they can lose 80% of their customers at these prices and still multiply their profits almost exponentially while dramatically reducing their costs, and blame it on “the supply chain” for the second year running. Keep selling it, John. Winning may not be a destination for you, rather a brief part of the journey.
My youngest sister was on a rant last Sunday at the big family dinner.”Damn greedy oil companies are gouging us. Government needs to fix it.” She left the table when i asked her why the evil oil companies weren’t GREEDY when Trump was President. I swear her tears were better than my wife’s pie.
None of that is relevant, Jack . The world has changed. It’s not the oil companies. It’s the private equity and the hedge funds that own the oil companies. And everything else under the sun. Pick a publicly traded company. Any company. Google their top 10 shareholders. Three of them are going to be Vanguard, and BlackRock, and State Street(SSgA). Every single fucking time. And they own each other. And every other company that’s a top 10 shareholder.
Oh well. I really don’t need my 2019 MB 3500 Series Sprinter, as I’ve sold the business that it was necessary for. But, quick history, as follows:
Bought Sept. 2019 for $48.5K. It now has 30K, just did the MB “Service A” last week.
A year ago, KBB was $45K. Last week – $52.3K. Taxes are $800/yr, insurance is $1700. Why should I want $$$ when I’m netting a 10-12% ROI/yr.? But, all good things must end.
The prices are up because of “GOVERNMENT”.
WEF – Look no further Energy, Food, Pharma, Electronics you name it. All the power moguls who are cooperating with this demonic force loosed on mankind are to blame. It’s long list.
Sympathy for the Devil:
Please allow me to introduce myself
I’m a man of wealth and taste
I’ve been around for a long, long year
Stole many a man’s soul and faith
I was ’round when Jesus Christ
Had his moment of doubt and pain
Made damn sure that Pilate
Washed his hands and sealed his fate
Pleased to meet you, hope you guess my name
But what’s puzzling you is the nature of my game
Right……
Price of a barrel of oil goes up $1, same day the price at the pump goes up $0.20.
Price of a barrel of oil goes down $1, same day the price at the pump goes down $0.00. Two weeks later the price at the pump MAY drop a few pennies.
It is a rigged game and you are the mark.