Former Shell Oil President John Hofmeister said last week that President Joe Biden's climate policies are responsible for soaring gas prices.
Former President Donald Trump predicted that Biden's policies would force gas prices to increase because they target domestic oil production. Biden, instead, has said he will prioritize renewable energy and calls the far-left Green New Deal "a crucial framework for meeting the climate challenges we face."
What are the details?
Considering that OPEC has raised oil production, one may expect worldwide oil prices to drop.
But Hofmeister told Fox Business host Maria Bartiromo that Biden's climate policies are offsetting the effects of the global oil market because they hamper domestic energy production.
"The reason gasoline is coming back up is we've been in a shutdown period for many of the refineries, and so that puts a squeeze on what's available in terms of final product," Hofmeister said.
"But there's something else that's going on that's more subtle. What that is, is that the industry, the producers, are practicing serious capital discipline and they're not roaring back to produce more oil. And also, they're getting squeezed by the administration," Hofmeister continued.
Hofmeister explained that Biden's policies have created an environment of fear that drives up oil prices.
"So the ban on leasing — the prohibition on new leases from the Biden administration — that's going to create a psychology in the industry of, 'There's going to be less available,' and the psychology drives the pricing as well," Hofmeister said.
"As long as we see this hostile administration, we're going to have a problem with prices," he added.
'Hostile' Biden administration will disturb gas prices: Ex-Shell Oil president www.youtube.com
What has Biden done?
Gas prices have skyrocketed nearly 40 cents per gallon compared to last year. Even in the last month, prices have increased more than 30 cents per gallon, according to AAA.
Energy analyst Patricia Schouker recently said the spike should be partially attributed to energy markets rebounding following their crash last year, which was triggered by the pandemic.
"US oil and gas stocks, by far the worst performers of last year, are standing out as the best in 2021," Schouker said. "A booming rally in oil markets has pushed crude prices to their highest levels since near the start of the coronavirus pandemic, powered by production curbs and recovering demand."
However, Biden has taken aggressive steps to fulfill his promise to focus America's energy future on renewable sources, not oil and coal.
One of his first actions as president included signing an executive order suspending "new oil and gas leasing and drilling permits for U.S. lands and waters," the Associated Press reported.
Texas Gov. Greg Abbott (R) responded to Biden's executive order with one of his own, directing Texas authorities to challenge Biden's directive. The issue is personal for the Lone Star State because a significant portion of Texas' economy is tied to oil production.