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Oil may hit $100 in 2022 as US energy independence dwindles
Strategic oil reserves ‘meant for war,’ not to decrease prices: Trump
Former President Trump slams President Biden’s move to release 50 million barrels of oil held in the U.S. Strategic Petroleum Reserve, as Americans have been paying more for gas now than they have in years.
Energy prices exploded in 2021, and 2022 may bring a repeat unless the Biden administration changes its anti-fossil fuel agenda.
UNITED STATES OIL FUND L.P.
Canceled pipelines and drilling moratoriums have created a toxic environment for U.S. oil and gas investment. Because of this, the U.S. will be undersupplied in the new year unless the omicron variant shuts us down or if rising costs drive the economy into a recession. If these shadows of our current energy policy remain unaltered, then oil prices should surge to just shy of $100 a barrel next year.
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Looking back at 2021, we know that this was a year of the great inflation expansion, unlike anything we've seen in a generation. In November consumer price inflation was up 6.8%, the highest since 1982, and while supply chain issues due to COVID-19 were a big part of what was pushing prices higher, a look at the big picture showed it was the cost of energy as one of the root causes.
WHERE INFLATION IS HITTING CONSUMERS THE HARDEST
Rising energy costs were not just COVID-19-related but a self-inflicted wound by the Biden administration as it signaled an ill-advised war on fossil fuels during a pandemic that sucked dollars from the U.S. economy into the economies of Russia and OPEC. Even the Saudi Arabian energy minister Abdulaziz bin Salman warned that the reduced investment in oil and gas would cause global oil production to fall by 30 million barrels a day and would only enhance the cartel's dominance in the global oil and gas space.
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Former EPA administrator slams Biden for including tax on oil in spending plan
Andrew Wheeler, who headed the Environmental Protection Agency during the Trump administration, argues the Biden administration has ‘done everything that they can’ to decrease American production, which has caused prices to soar.
For many years economists were stunned that we could see the economy grow at a rapid pace while inflation remained subdued. Federal Reserve officials were confused as to why we were not seeing inflation creep back into the marketplace. Yet a big part of that was to the credit of the U.S. energy producer. The shale revolution provided plentiful and cheap energy, which allowed businesses to grow without seeing their costs increase, and that kept price pressures low. That also created jobs, not just in the energy industry but also from manufacturers that benefited from low U.S. fuel costs. Businesses both large and small flourished, powered by cheap U.S.-produced oil and gas.