If the Omicron variant doesn't result in another round of lockdowns, some experts say Americans can expect to see gas prices nearing $4 a gallon in dozens of states this year.
– Americans across the country have been paying higher prices at the pump. And if the Omicron variant doesn’t result in another round of widespread lockdowns or crackdowns on social gatherings, some experts say Americans can expect to see gas prices nearing $4 a gallon in dozens of states this year.
Many have blamed President Biden for the higher energy prices. Yes, he revoked the permits for the Keystone XL pipeline, which would have moved more Canadian oil from Alberta to Nebraska. But existing pipeline expansion projects have and will move more Canadian crude to the US. Biden’s war on carbon may impact prices, but not until the second half of his term. Once the country really starts moving away from fossil fuels, it will be expensive and painful.
Each spring, the US gasoline industry must flush out winter gasoline and replace it on the fly with summer blends. That’s because some of the cheaper ingredients that can be used in colder weather wreak environmental havoc in warm weather months. This “rinse-and-replace” cycle takes place against the backdrop of refinery maintenance and daily consumption of more than 300 million gallons.
Some unprofitable Gulf Coast plants were shut down last year after Hurricane Ida. Other refineries are being converted to manufacture biofuels from vegetable and animal oils. And others have closed down in California, Wyoming and Newfoundland to make way for new state-of-the-art plants coming onstream in the Middle East, Southeast Asia and Nigeria.
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