Democrats call on Biden to lower gas prices, support tax hikes, other regulations on the industry – Corridor News

By Bethany Blankley | The central place

E.Senate Democrats have urged President Joe Biden to do something about soaring gas prices while backing policies that the energy industry says is contributing to the seven-year high cost at the pump, including oil and gas tax increases embedded in the build Back to act better.

The eleven senators wrote this month that they support the president’s commitment to the development of “clean renewable energies” but “must ensure that Americans can afford to refuel their cars in the meantime”.

The average cost of a gallon of gasoline on Friday was $ 3.41 per gallon, according to the AAA. That’s $ 1.20 more a gallon than this time last year.

Under the Trump administration, the US was a world leader in oil production and was energy independent. Under the Biden government, gas prices are higher than they have been since 2014 within eleven months of taking office.

In their home states, Democratic Senators write: “The high gasoline prices have placed an undue burden on families and small businesses trying to make ends meet and have been particularly burdensome as our constituents continue to learn from the economic consequences of COVID- 19 recover pandemic. “

They blame rising gas prices “on the Organization of Petroleum Exporting Countries (OPEC) and others for deliberately manipulating gas prices by restricting supply and the choice of domestic tenants and producers to continue exporting US oil.”

They asked Biden to consider “all the tools at his disposal” to bring US gasoline prices down, including releasing oil from the Strategic Petroleum Reserve and banning crude oil exports.

Instead, Biden responded by calling on the Federal Trade Commission to investigate possible illegal behavior in the oil and gas industry that could cause gas prices to rise.

Those in the oil and gas industry say the reason the prices are soaring is lower supply due to restrictions imposed on the industry by the Biden government, including terminating the Keystone pipeline, discontinuing new leases on existing ones Establishments in the state.

Frank Macchiarola, SVP of the American Petroleum Institute, told The Center Square that Biden’s call was a distraction from his own energy policies, including restricting access to American energy supplies and canceling major infrastructure projects.

“Rather than investigating markets that are regulated and closely monitored on a daily basis, or asking OPEC to increase supply, we should promote the safe and responsible development of American-made oil and natural gas,” Macchiarola said.

Todd Staples, president of the Texas Oil and Gas Association, agrees, arguing, “The solution,” he says, “is not to disrupt the energy opportunities that have resulted in more economic gains for our state and our nation.” Instead, all Americans should “ask their elected officials to support the abundance of affordable, reliable energy here at home.”

US energy policy “shouldn’t give up energy freedom for energy dependence,” added Staples. Instead, it must “promote smart, science-based policies that advocate domestic production, indigenous jobs, and economic advancement that benefits all Texans and every American. Unfortunately, we are feeling the effects of a misguided policy that has promoted foreign energy instead of promoting American pipeline projects, domestic production and trade opportunities. “

One guideline includes the “Methane Emission Reduction Act of 2021”, which is embedded in the BBBA and imposes new taxes on all oil and gas producers for “ambient methane emissions”. According to the industry, the costs would be passed on to the consumer, which would further increase gas prices for the foreseeable future.

Ed Cross, president of the Kansas Independent Oil and Gas Producers Association, said the plan would require industry to measure “ambient methane emissions” using technologies that do not currently exist or are taxed.

“The tax is based on measurements of methane emissions in the area,” Cross wrote in a comment published by the Kansas City Star. “The measurements would have to differentiate between oil and natural gas production, agricultural emissions – about a third of US methane emissions – and landfill emissions – about a third of US methane emissions.

“And the measurements should be continuous – every day, 24 hours a day. Such a system does not exist and cannot be created in the foreseeable future either. “

Methane emissions are already heavily regulated. Because of American technological innovation, US natural gas production has lowered emissions, which has made the US the world leader in emissions reduction, industry leaders insist.

The Texas Independent Producers and Royalty Owners Association argues that the proposed industry taxes and fees “could paralyze small Texan oil and gas operators and place a heavy burden on American taxpayers.”

Additional taxes would “have a ripple effect across the US economy and negatively impact American jobs, domestic energy production, household energy bills and the cost of goods and services, including the price of gasoline,” said TIPRO President Ed Longanecker . “The US oil and gas industry has demonstrated its commitment to reducing emissions through innovation, collaboration and investment of hundreds of billions of dollars in greenhouse gas mitigation technologies along the entire value chain with quantifiable success.

“If we turn back the clock on carbon dioxide emissions and every other major air pollutant, natural gas leads the way,” he added. Increased natural gas production “through innovation and efficient practices brought back manufacturing jobs and saved American families $ 204 billion annually from lower electricity, oil and natural gas prices. That’s the equivalent of US $ 2,500 a year for a family of four. “

During the 2020 statewide shutdown, when the oil and gas industry experienced a “bloodbath” of losses, Texan companies still produced 43% of the nation’s crude oil and 26% of the natural gas marketed.

Nearly a quarter of the country’s operable refineries and a third of the US’s total refining capacity are in Texas, reports the Energy Information Administration (EIA), with 31 petroleum refineries combined processing nearly 5.9 million barrels of crude oil per day.

Texas also produces more electricity than any other state, EIA finds, generating nearly twice as much as Florida, the state with the second highest electricity production.

About a quarter of the United States ‘dry natural gas reserves and three-tenths of the United States’ 100 largest natural gas fields are located partially or entirely in Texas. In 2020, Texas produced a quarter of the country’s natural gas, with the majority coming from the Eagle-Ford Shale and Permian Basin in the past decade.

Democrats call on Biden to lower gas prices, support tax hikes, other regulations on the industry