Placing the Blame on High Gas Prices

Americans are outraged about the high prices at the pump because the United States is now the world’s largest producer of oil and gas, followed by Saudi Arabia and Russia. It is also the third-largest exporter behind those two countries (And, by the way, we became the world’s energy titan even with decades of increased regulations on drilling, production and use of oil and gas.) Finally, the U.S. is also the world’s second-largest importer of oil because many of its refineries are built to process only types of oil mined from other countries. Naturally, Americans want the industry to increase production so prices can fall. Indeed, Biden has begged American companies to increase production and capacity to ease the burden on consumers. They have refused. Why? Yes, they are enjoying record profits and rewarding stockholders. But, according to the financial press, there is a second, equally important reason. Which brings us to the hopeful part of this story. Even before the pandemic, the industry had decided the future for fossil fuels was not great because the growing impact of climate change was increasing demand for renewable fuels. They see this pattern in the record sales of electric vehicles and the decision by American carmakers to go almost fully electric in 10 years. They see it in record growth worldwide in investments in solar and offshore wind development. Meanwhile, Putin’s murderous war, while pushing prices higher right now, is speeding the transition away from fossil fuels. European countries are advancing their timelines to renewable energy so they can stop buying Russian oil and gas. Oil and gas executives know ramping up production and drilling now will cost many billions over several years that could leave them sitting on product as demand begins slipping — just like during the pandemic. So they’re choosing to squeeze as much profit out of the world’s misery while bankrolling for their futures in renewables. It’s business. Of course, governments can ease the pain. The U.K. is using a windfall profits tax on oil companies to ease the bills on low-income households. Don’t expect that to happen in the U.S.; Republicans would block any such attempt in the Senate. A better way to look at these record prices is as a signal that better days are coming for the planet, and Louisiana. Higher prices will mean less fossil fuel use and reduced emissions, which eventually will reduce sea level rise and the size of hurricanes. In the long run, that’s good news. Bob Marshall, a Pulitzer Prize-winning Louisiana environmental journalist, can be reached at bmarshallenviro@gmail.com, and followed on Twitter @BMarshallEnviro. https://www.nola.com/opinions/article_63a5b6ce-f312-11ec-b4b6-1b49ba4ec12d.html