Breitbart Business Digest
June 24, 2022
How the Corporate Greed Narrative Hurts Energy Production
Catherine Rampell of the Washington Post makes an important point about how the Biden administration's war on U.S. businesses is hampering its attempts to bring down gas prices:
Ramping up drilling and refining requires big, expensive investments that firms worry won’t pay off if (when) oil demand eventually falls again. A lot of companies went bust in 2020, when oil prices briefly went negative. The long-term outlook for fossil fuels isn’t great. One solution might involve insuring companies against some “downside risk.” For example, the government could guarantee some minimum level of future prices or profits.
But that would be politically toxic. How can Democrats guarantee profit levels, when they’ve convinced their voters that these greedy firms are already “profiteering”? Progressives have effectively boxed themselves in.
It's even worse than that. The Biden administration is not only prohibited from helping refiners by its "corporate greed" narrative. It is also blocked by its attachment to green energy and its pledge to end fossil fuels. On Thursday, when Treasury Secretary Jennifer Granholm was holding an emergency meeting with representatives from all the top oil companies, Biden was meeting in the White House with wind energy people. This tells you everything you need to know about who is really running the show in the administration, and it is not the people who want cheaper gasoline.
– Alex Marlow & John Carney
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