June 18, 2022 - Is $6 a Gallon Gasoline Next?

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June 18, 2022

Is $6 a Gallon Gasoline Next? by The Editorial Board
Appeared in the Wall Street Journal on June 15, 2022

Gina's Thoughts

Perhaps the subheading of this article is more telling than the headline. It reads, "The assault on fossil fuels has shrunk US refining capacity." The decade-long divestment movement has indeed been an assault on fossil fuels and has led to a chronic undersupply issue due to lack of investment in the sector. A major culprit is US government policy and this applies equally to Canadian government policy. "Refineries are shutting down or being repurposed for renewable fuels because the stated policy of the US government is to reduce demand for the products that refiners produce." Trying to force a shift away from fossil fuels is not helping the supply issue. The US, Canada and the world still need oil and gas and as demand continues to rise, investment in the sector needs to rise with it.

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