While there has been both instances of bipartisan support and bipartisan opposition to various state- and federal-level gas tax holidays, Center for Strategic & International Studies analyst Kevin Book said a 3-month federal holiday would relieve 0.0005% of the average American’s disposable income.
“[W]hat we’ve seen is about 1.9% increase in the gasoline share of disposable income over President Biden’s term. So it is a small thing relative to the gains so far,” Book said.
“I think for some people, in some places it might matter. But ultimately, you don’t balance markets by making it easier to consume. It’s painful. But markets balance on price.”
While oil prices have slackened slightly over the past week, “Special Report” anchor Bret Baier asked about Biden’s repeated point that there are 9,000 unused permit sites on which oil companies can speculate for fuel extraction.
Book said leases are simply “contracts with the government” and that not every lease will result in a drill site – and not every drilling site will result in striking oil or natural gas.
“Not all leases are on land that you want to drill on. Not all permits are on top of what oil industry experts would call prospective areas,” he said.
“So you don’t necessarily see the drilling just because you have leases and permits. You continue leasing, you continue granting permits: you get more options, you get more production.”
Book said a lot of the consternation surrounds Biden’s ulterior message to the oil industry that they face a “short lifetime” if he is able to realize his green agenda – which leads investors to be wary in both New York City and the oil fields themselves.
“The funding that comes from Wall Street is concerned about stranded asset risk: The idea that putting money into the ground today won’t come out tomorrow. So that could be a big deterrent,” he said.