As President Joe Biden announced that the United States will finally ban Russian oil imports, he forgot to also do one important thing: deregulate and incentivize the private sector to increase domestic oil production.
The White House has repeatedly claimed that there at 9,000 unused drilling permits, but the American Petroleum Institute has already debunked that narrative.
“Ultimately, energy policies affect the energy investment climate. Specifically, they impact the ability of producers — typically accountable to shareholders — to take the risks involved in spending billions of dollars to find and develop oil and gas. Mischaracterizing the way federal leases work does not help foster new investment and risk-taking,” API’s Kevin O’Scannlain wrote last week.
“Instead, the administration discouraged American energy. For more than a year it has halted new federal leasing – key to future energy investment and production. It canceled energy infrastructure, blocked development in parts of Alaska, entertained new taxes to punish the U.S. energy industry and chilled future investment by signaling that oil and gas wouldn’t be part of America’s future energy mix,” he later added.
“All last summer, the administration called on OPEC+, the oil cartel, to increase its production more rapidly in the face of rising energy costs, bypassing American producers.”
The administration is so stubborn on the issue that they have opted to release 30 million barrels from the Strategic Petroleum Reserve in an attempt to lower historically high gas prices, according to the Energy Information Administration. This should only be done in the event of an emergency, but appeasing leftist environmentalists may warrant a crisis in the White House’s political playbook.
So, as the national average per gallon is $4.17, according to AAA, and it’s north of $6 in some parts of California, one of the few methods left would be for President Joe Biden to sign legislation declaring a federal gas tax holiday.
Five Democratic governors are already calling on Congress to pay a bill that would scrap the $0.18 tax till the end of the year, ABC 12 News in Flint, Michigan, reported.
“Today, governors @GovMLG, @GovEvers, @GovofCO, @GovernorTomWolf, @GovTimWalz and I are announcing our support for a federal gas tax holiday. We need to do all we can to put money back in people’s pockets,” Gov. Gretchen Whitmer (D-Mich.) tweeted.
Today, governors @GovMLG, @GovEvers, @GovofCO, @GovernorTomWolf, @GovTimWalz and I are announcing our support for a federal gas tax holiday. We need to do all we can to put money back in people’s pockets. pic.twitter.com/SXIT59iC97
— Governor Gretchen Whitmer (@GovWhitmer) March 8, 2022
Unfortunately, the cut would not do much, but these Democrats know that it would be a minuscule political victory for the president. Even Republican National Committee spokesperson Preya Samsundar pointed out that this is a way to score political points.
“Gretchen Whitmer’s posturing about a federal gas tax holiday is a slap in the face to Michiganders who live under the constant threat of rising energy prices as a result of her campaign to shut down Line 5,” Samsundar said.
However, Republicans should continue the push for conservative energy policies and also begrudgingly unite behind a tax holiday. Any effort to lower prices without caving to adversaries like Russia should be taken in order to help American families.
Individual states should also consider suspending their separate gas tax as well, although many states might groan at the potential lost revenue. That small amount of money saved could have a big impact on some Americans. The only difference between Republicans and Democrats in this scenario would be the motives behind wanting the tax paused.
As the conflict in Ukraine wages on, the economic wellbeing of the American people should not be the sacrificial lamb. Biden made the right choice by deciding to ban Russian energy imports, except he is taking the wrong approach by only pulling from oil reserves and calling for an expansion of green energy. The administration can go further to achieve American energy independence faster, and they know it.