Page 50 - Nigeriaone mag 2 edition en

This is partly due to gas companies underestimating the speed with which demand would rebound from
pandemic lows. As gas prices rise, experts predict that they will remain high. “This supply/demand dynamic,
combined with volatile crude prices, will likely continue to keep upward pressure on pump prices”, AAA said
in a statement.
The public protest over this expensive commodity prompted a response from the US government. In late
March 2022, when the Russia/Ukraine conflict disrupted oil supply, President Biden announced a record-
setting release of 180 million barrels from the US Strategic Petroleum Reserve. The initiative, however, was
just a temporary fix to a continuing oil crisis. Energy Secretary Jennifer Granholm said the president is
focused on bringing down the sky-high gasoline prices, although she acknowledged that even the most
powerful person in the world does not have unlimited influence. During her interview on CNN on May 24,
2022, she stated “He is obsessed with the fact that gas prices are so high and people are hurting.” According
to her, Biden has already used the " biggest tool" at his disposal in addressing the energy crisis by unleashing
unprecedented amounts of oil to ease strains due to the war in Ukraine. The fact that Biden has taken an
aggressive stance on climate change since the election should not be overlooked. Biden jumped right into
addressing the climate crisis after being elected.

Now that the world is facing an energy crisis, Biden
administration officials are openly pleading with
Big Oil to pump more, not less, and urging OPEC to
boost supply. "Biden is responding to the current
situation," the Energy Secretary said when asked if
this is an awkward juxtaposition. She stated “The
fact that we are paying these outrageous prices is
almost an exclamation point on the fact that we
need to move to clean energy so we are not in this
position in the future.”
The energy crisis has become a political issue, with
some legislators proposing a temporary ban on US
oil exports. Many industry experts, however, fear a
ban on US crude exports will only result in higher
pump prices, which are based on the price of
crude.
In addition to the federal government's active
efforts to alleviate consumer burdens and deal with
the energy crisis, some states are also taking
measures. To help consumers, Connecticut,
Maryland, and Georgia have suspended state gas
taxes. At least 20 other states are considering
similar steps.
Interestingly, this increase in oil prices is in favor
of the big oil companies. When oil prices crashed
in 2020, the industry lost a lot of money. Now it has
become a cash cow and is returning billions to
investors through dividends and share buybacks.

Oil well, illustrative image

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