Gas Prices are Headed Up
Americans are about to pay a lot more for the gasoline they buy for their cars, trucks and recreational vehicles – in addition to paying more for heating their homes come this fall and winter – and this is for a few reasons. The most glaringly obvious reason is the policies of the Biden administration. Biden has committed to killing as much of the fossil fuel industry as possible and kicked things off on his first day in office by canceling the Keystone XL Pipeline. This executive action immediately killed more than 10,000 jobs and ensured that the supply of oil would not be increased. An increase in supply, of course, would yield a reduction in price but the administration has embraced the so-called Green New Deal and in cutting the pipeline destroyed the prospect for lower fuel prices. The pipeline would have brought 800,000 barrels of oil per day from Alberta Canada to oil refineries on the Gulf Coast.
For anyone who thinks that the cancelling of the pipeline was a one off concession to environmentalists, think again. Biden recently stated that he intends to cut U.S. fossil fuel emissions by up to 52% by 2030. This, of course, would result in an economic catastrophe for America because fossil fuels provide the most efficient energy on the widest scale to the most people. You can’t replace the energy production of fossil fuels with wind, solar and electric cars.
Notwithstanding the fact that electric vehicle batteries, for instance, rely heavily on the mining industry and are not as “green” as those who advocate for them want us to believe, it will be impossible to fully replace fossil fuels with green energy. What little fossil fuel energy can be replaced with green energy will be replaced at an extraordinary cost to American families and businesses. A 2019 study in Minnesota revealed that a 50 Percent (by 2030) renewable energy standard would cost Minnesota $80.2 billion, a cost that would result in electricity prices rising by a staggering 40.2%. It would also cost Minnesota the loss of 21,000 permanent jobs, and reduce the state’s GDP by $3.1 billion annually. Imagine the impact on states with an already high cost of living. So what about those people losing their jobs as a result of this plan? Biden says they don’t need to worry and that they must be provided new job opportunities “in the places where they live.” How? He has no idea.
Biden’s policies have already resulted in gasoline prices being up 22.5% from March of 2020. The impact on families, particularly when combined with food price inflation, is really hurting pocket books in an already challenging financial situation for many Americans. Now with the summer approaching and demand increasing, look for those gas prices to keep on rising. This is on top of already bad news that a major pipeline, the Colonial Pipeline which delivers 45% of all fuel consumed on the East Coast, was recently shut down due to an alleged cyber-attack. Will these be the last of the attacks on our pipelines whether by policy or outside attack? We think not.
We believe it is prudent to set aside some gasoline and other fuel supplies, such as kerosene for heating via kerosene heater, for the price spikes that will continue through this year. Before you run out and start stockpiling fuel, ensure that you read up on the best and safest ways to store it, including any fuel preservation additives you’ll need to ensure the fuel doesn’t go bad if kept for a lengthy period of time. Having sufficient emergency fuel supplies on hand will ensure you have the ability to be mobile or provide some extra heating for your home if needed. At least stockpile enough to escape to a rural retreat away from the big cities which will become chaotic if fuel shortages become prolonged. After all, when you’re in the cities if there is no fuel there is also no food.