What Effect Do U.S. Presidents Have on Gas Prices?

A reader reacted to my recent post centering around energy analyst Robert Rapier’s explanation of the role that U.S. presidents play in determining the price of gas.  She writes: “I am sure the price of gas is a complicated issue, but it does seem to me that Biden’s actions [gas line from Canada] and general negative attitude toward fossil fuel production must play a part.”

You bring up interesting points.  I would agree that putting a spear through pipeline projects could affect the long-term price of gasoline.

It’s unclear (at least to me) what the transition away from fossil fuels will do.  First, let me point out that this is happening very slowly, due to the extremely powerful influence that Big Oil has on our world.

Eventually, the phase-out will lower demand, which would actually lower prices, as alternative/competitive solutions come on line.  However, at the same time, it will reduce supply, raising prices, because the market will get smaller and therefore less attractive.  But again, the significance of these factors will play out over a period of decades rather than months.