October 26, 2021
Addressing Oil Prices
Over the past year, the global market for oil and gasoline has experienced rapid shifts in demand paired with slower-moving adjustments in supply. As a result, throughout the past year the price of oil has risen over 125 percent domestically and gasoline prices have risen over 50 percent. In a new insight, Director of Energy Policy Ewelina Czapla considers the potential impact of the Biden Administration’s efforts to address high prices in the United States.
The Biden Administration is reportedly considering a variety of policy changes to reduce prices, but none is either timely or quantitively important enough to have any substantial impact. The policies are either too slow-acting – reversing the moratorium on new oil leases on federal lands – or too small – releasing oil from the Strategic Petroleum Reserve (SPR) – or misguided – banning exports – to be effective.