In the U.S. Gas Prices Not All To-Do With Russia-Ukraine

In the United States gas prices are quickly rising at the pump, causing many Americans to have to rethink their budgets, especially in terms of discretionary spending that will now have to go to filling their tanks instead.

This comes especially hard at many businesses who have been enjoying at least some resurgence in customers post Covid shutdowns like restaurants, bars and other retailers.

The hotel industry and tourism may also be impacted as consumers will likely opt to forego some travel plans due to the higher cost of getting to their destinations.

Gas prices are currently at a 14-year high in the U.S. and all indications are that coming very soon to a gas pump near you will be record highs we have never seen before.

Some of the higher prices are due to higher demand, and of course reduced supply further exacerbated by the Russia-Ukraine conflict. But it is not the whole story.

The United States, prior to the current Biden administration, was in much better shape when it came to oil. And that was thanks in large-part to former president Trump's pro-energy policies which reopened exploration and drilling in the United States among other things. Policies which not only made the U.S. energy independent for the first time in decades, but also turned the United States into a major exporter of oil to other countries.

As a result of these policies gas prices fell to lows not seen for years, and helped to bring down cost for many other countries as well around the world as less control over pricing was left in the hands of OPEC and countries like Russia, who largely controlled the world's oil supply.

Almost immediately following Biden's signing of executive orders mere hours after taking his oath of office gas prices began to rise.

My commentary here is not to suggest that had Trump's energy policies remained in effect that due to the Russia-Ukraine conflict there would have been no impact on oil prices.

But certainly the United States would have been much better positioned to deal with the issues created by the conflict, and while gas prices would still have risen, the impact of the rising gas prices would have been significantly less.

Part of the problem is that while we have runaway prices at the pump, we also are experiencing runaway inflation at the same time. Some of the inflation is a direct result of the higher cost of getting raw materials and goods to market—a situation which can only presumably get much worse as gas prices may top $6 a gallon very soon.

To my mind there is only one solution right now when it comes to oil. Return to Trump's energy policy and do it immediately. Because the impact of rising oil prices and increased pressure on supply will not just be one felt by the United States. It's a world-over problem that will be felt by everyone that the United States actually has the ability to ease.

Lead image courtesy of Pixabay, user Matryx. Pumpjack Oil Petroleum - Free image on Pixabay