High gas prices in America are caused by a mismatch between U.S. oil production and refining, bad policies or political hostility, and the Biden administration’s inaction, according to experts and oil industry insiders.
Inflation in the United States has been running high since March when the yearly Consumer Price Index (CPI) reached 8.5 percent, the highest level since 1981.
A dramatic increase in energy prices has drawn special attention.
Between May and August, energy prices rose between 20 percent to 40 percent year-over-year.
President Joe Biden and the Democrats have proposed different solutions to the high energy prices, including a windfall tax for oil companies, urging gas stations to cut prices, imposing an oil export ban, and allowing countries to buy Russian oil with a price cap.
However, oil industry insiders and experts said most of those proposed measures either will not work or won’t lower the gas prices in America permanently.
Michael Wirth, chairman and CEO of U.S. oil giant Chevron, rejected the idea of taxing oil companies’ profits.
“Windfall profits taxes have been tried before in this country. They didn’t achieve the goal that was desired. It is pretty basic that if you want more of something, you tend not to tax it. If you want less of something, you put taxes on it,” he said during an interview with CNN on Sept. 13.
Oil Export Ban Could Be Disastrous
As inflation soared, Democrats have been calling for the White House to impose an oil export ban. But experts and a refinery owner warned this will not cut gas prices and may bring disastrous results.
U.S. crude oil exports have been increasing since 2011, and decreasing oil imports during the same time period caused net crude oil imports to decrease.
By Allen Zhong