By Duncan Smith
It sure was a pleasure to be able to fill our vehicles on gas that cost a buck-fifty, to a buck-seventy during the Trump oil boom years, wasn’t it?
Well, get used to paying more, and in a quick hurry, thanks to several factors, not the least of which is the fact that Joe Biden’s Marxist handlers told him to ditch al of Donald Trump’s energy policies, which made American energy independent for the first time since the Osmonds and the Jackson Five were just getting started.
From a Bank of America report titled “Oil’s ALL About The Benjamin”:
.. analyst Francisco Blanch laid down the strongest call yet among major forecasters for an oil price return to triple digits, writing that oil may surge to $100 a barrel next year as travel demand rebounds, and as global oil consumption continues to outstrip supply in 2022 as the economic recovery from the pandemic boosts fuel consumption, while investment in new production is crimped by environmental concerns, the bank said in a report.
Summarizing this super bullish thesis, Blanch writes that “a combo of factors could push oil to $100/bbl (a 'Benjamin') next year, mostly on three key demand and three key supply factors.”
- First, there is plenty of pent up mobility demand after an 18 month lockdown.
- Second, mass transit will lag, boosting private car usage for a prolonged period of time.
- Third, pre-pandemic studies show more remote work could result in more miles driven, as work-from-home turns into work-from-car.
At the same time, on the supply side BofA expects…
- government policy pressure in the US and around the world to curb capex over coming quarters to meet Paris goals.
- Secondly, investors have become more vocal against energy sector spending for both financial and ESG reasons.
- Third, judicial pressures are rising to limit CO2 emissions.
In short, demand is poised to bounce back and supply may not fully keep up, placing OPEC in control of the oil market in 2022.
Trump got us out of the Paris Climate Accords because the world’s two biggest polluters, China and India, would remain the world’s two biggest polluters — as the U.S. economy ‘complied’ and then contracted thanks to our inability, legally, to utilize our vast energy resources.
Mind you, policies that create higher oil — and then higher gas — prices amount to what is an avoidable tax on every single American earner. Oil doesn’t just end up in gas tanks; it is used in just about every consumer good.
If we don’t get these Democrats out of office, they’re literally going to ruin our economy and, thus, our country.
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