Build Back Better bill could have huge impacts on energy industry, but likely unrelated to drop in oil prices

Prices are stabilizing after a year of steadily rising. European COVID-19 lockdowns are likely one contributing factor.

By Alexandra Hart & Caroline CovingtonNovember 22, 2021 10:31 am, ,

Oil prices are dropping after almost a year of steadily rising.

Matt Smith, lead oil analyst for the Americas at KPLER, tells Texas Standard that several factors are contributing to the decrease, including recent European COVID-19 lockdowns. That means lower prices for consumers at the gas pump in the coming weeks.

And the recent passage of President Biden’s Build Back Better bill in the U.S. House of Representatives would also have a major impact on the oil and gas industry if signed into law. But Smith says it likely isn’t a factor in the recent drop in oil prices. Listen to the interview with Smith in the audio player above to learn more, including about implications for holiday travel.

Highlights from this interview:

– Three things are likely causing the drop in oil prices: European COVID-19 lockdowns, the potential release of the United States’ petroleum reserves and a stronger dollar amid concerns about inflation.

– AAA forecasts Thanksgiving travel to return almost to pre-pandemic levels. Gas prices in Texas are expected to go below $3, but not until December.

– Biden’s Build Back Better plan allocates almost a half-a-trillion dollars to respond to climate change. That includes money to address damages caused by extreme weather. It also includes tax credits for consumers who buy electric vehicles and install solar panels.

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