I see a lot of mixed opinions on the extravagant oil prices, whereas in the USA democrats and republicans have different views as usual. Here are some of the opinions I see a lot in the media: Opinion 1: USA oil prices are high as the US is no longer oil independent (due to the policy change Trump->Biden). Only partly true. Note that US prices are linked to world prices as it is has a free economy. Private US oil companies thus can benefit from high post-pandemic world prices just as they had to accept low world prices during the pandemic. The way to drive prices down is the US producing so much oil/gas, that we see a substantial rise in total world production. World prices would decrease including those in America. I don’t know if, hand over fist, the US can boost up enough additional quantity to drive down world prices by 1 or 2 dollars per gallon at the gas station, but it certainly would help if Biden did something in that direction. The other oil-producing countries increasing their oil/gas production would also drive world prices down with effect on US prices, even if the USA didn’t import such oil. Opinion 2: High oil/gas prices are mainly due to Putin’s war. I don’t think that this war explicitly lowered oil/gas production in the world. Speculation might have generated a short demand shock, but that is only temporary as also speculators are subjected to supply and demand in the longer term. If Putin continues his war, we might even enter an economic crisis, driving down energy demand, thus leading to bottom prices like during the pandemic. Opinion 3: High oil/gas prices are due to green energy. No, they aren't. Green energy development will drive down oil/gas demand and its prices. This however will be a long-term development not helping us with the current issue.
