Average national gasoline prices have soared to a record high of $5 a gallon. The price of natural gas, which heats many homes in America, has roughly tripled over the last year. And electric grid monitors nationwide are warning of blackouts and brownouts this summer. These effects on ordinary residents’ living standards require an immediate national environmental policy rethink, reflecting a new appreciation of cheap, reliable energy.
While Russia’s war on Ukraine and easy monetary policy have contributed to rising energy prices, policymaker opposition to traditional energy production and distribution is also a big reason for price increases. The Biden administration canceled the Keystone XL pipeline, banned oil and gas leases on federal land, and implemented numerous new burdensome regulations on production. Last year’s federal infrastructure legislation created a state carbon dioxide reduction mandate. Net-zero requirements at all levels of government and from many institutions reject traditional energy.
This matters because the price of energy is ultimately a function of supply and demand. On the same basis, however, policymakers can immediately help lower energy costs by reversing costly green policies. They should strongly champion oil and gas development and distribution.
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