J.D. Tuccille writes in Reason about high gas prices.
- Gas prices are largely driven by global supply and demand, but domestic policies imposed by the Biden administration have made energy more expensive.
- Regulations on refineries are overburdensome and lead to refineries having razor-thin profit margins, or shutting down entirely.
- Calls from politicians to “shut down fossil fuels” have also led to fewer investments in energy infrastructure, which have hobbled our ability to respond to high prices.
- To reduce prices in the future, the Biden administration must reduce regulations and empower our domestic energy producers.
“Burying their industry in red tape and choking off access to capital has been a very effective signal to rethink their entire business strategy. Oil industry insiders may coast along and enjoy the profits from existing capacity, but they’re unlikely to invest in facilities to meet demand for gasoline, and offset soaring prices, until they’re certain their industry will be allowed a future.”
Read the full article here.
The views and opinions expressed are those of the author’s and do not necessarily reflect the official policy or position of C3.
