Biden's war on oil and gas industry costs U.S. over $250 billion, study finds

Experts say anti-energy policies enrich foreign oil producers and undermine U.S. economic growth.

Biden's war on oil and gas industry costs U.S. over $250 billion, study finds
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A recent study by the Committee to Unleash Prosperity has revealed that President Joe Biden's policies targeting the oil and gas industry have led to a loss of more than $250 billion in economic activity for the United States. The study, conducted by economists Stephen Moore and Casey Mulligan, found that U.S. oil production under the Biden administration has failed to maintain the growth rate achieved during former President Donald Trump's tenure.

While the U.S. is currently producing record amounts of oil, the production levels are only marginally higher than those in 2019, before the COVID-19 pandemic. The Energy Information Agency (EIA) had predicted that the U.S. could produce up to 15 million barrels of oil per day under previous trends. However, in the second half of 2023, the average daily oil production stood at 13.2 million barrels, close to the peak reached under Trump, the Daily Wire reports.

The study also highlighted that the average price of a barrel of oil has been significantly higher under Biden at $72, compared to $54 under Trump. Additionally, the productivity generated from each new well, which had surged by 23% under Trump, declined considerably after Biden took office in January 2021. This decline is attributed to increased regulation, tax hikes, and investor reluctance to fund petroleum companies.

According to the study, if the rate of production under Biden had remained the same as it was under Trump, the U.S. would have produced at least an additional 2.4 billion barrels of oil. The lost production and increased extraction costs have reduced cumulative GDP by approximately $250 billion.

The study's authors argue that anti-energy policies in the U.S. benefit major oil producers in Asia and the Middle East, some of whom use their wealth to fund terrorism. These policies not only contribute to higher global oil prices but also give OPEC more pricing power by undermining the U.S.'s ability to respond to production cuts with increases of its own.

Stephen Moore stated that the report clearly shows how Biden's policies are wounding U.S. national security, the economy, and global stability.

“This report makes it clear that the left’s radical agenda, led by Biden’s policies, are self-inflicted wounds that are directly contributing to the current economic challenges and rising energy costs hurting millions of working Americans across the country,” Moore said.

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