Canary CEO and energy commentator Dan Eberhart warned that the price of gas is poised to further increase.
In an interview with Fox Business anchor Neil Cavuto, the oilfield drilling executive said that “the market overreacted to the omicron demand destruction.”
“OPEC is supposed to add 400,000 barrels a day a month. They’re struggling to do that right now,” Eberhart explained. “And on top of that, we’ve got an inflationary economic environment, so I think oil is headed higher.”
Eberhart added, however, that Biden’s “policies are pushing gas pricing up.” He said that the administration “doesn’t care for the price for energy that consumers are paying,” and pointed to the revoking of the Keystone pipeline permit and other restrictions on drilling.
“I think what [Biden] is showing is he cares more about hurting oil companies in general and he cares more about pushing a progressive kind of Green New Deal type agenda than he does about energy prices,” Eberhart argued. “That is what I am seeing if you look at the policies.”
Between November 2020 and November 2021, the average cost of gas increased from $2.01 to $3.40 per gallon. Despite the precipitous rise in prices during his presidency, Biden’s Democratic allies have been emphasizing the smallest available signs of momentary cost savings. For instance, the Democratic Congressional Campaign Committee shared a graph on Twitter showing that gas prices had dropped two cents.
Allies in the media have followed suit. CNN host Don Lemon celebrated the fact that gas prices have fallen by roughly $0.09 from last month.
“A big economic relief for millions of Americans who have been dealing with soaring energy prices,” Lemon said on Tuesday. “Cost at the pump, finally easing up. With the national average for a gallon of regular falling to $3.35. The lowest since October. Just look at that.”
Lemon then welcomed Austan Goolsbee — former chairman of the Council Of Economic Advisors under President Barack Obama and economics professor at the University of Chicago’s Booth School of Business — to drive home the point.
“Can we just celebrate this some good news just for a minute? I’ll take it where I can get it,” Lemon told Goolsbee.
“Yeah,” Goolsbee responded. “I’m kicking myself because I filled my tank just a few days ago, 64 bucks, when I filled up my tank and I should have waited.”
Amid the rising gas prices, the Biden administration announced plans last month to tap 50 million barrels of oil from the United States Strategic Petroleum Reserve. According to the United States Energy Information Administration, however, the United States consumed roughly 18 million barrels of petroleum per day in 2020 — meaning that the release of 50 million barrels would only mean 2.5 days’ worth of consumption.
Nevertheless, Amos Hochstein — the White House’s Senior Advisor for Energy Security — said in an interview that releasing oil from the reserve “is a tool that was available to us and will be available again.”