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Ongoing turmoil in the Middle East could have less impact on Americans’ energy prices as the country turns more north.
Towards Alaska.
“Developing Alaska’s oil and gas reserves makes sense,” declared oil and gas expert Phil Flynn.
Recent policy changes by the Trump Administration have opened up the door to more energy development in Alaska, helped along by the Supreme Court’s recent verdict that cut back requirements under the National Environmental Policy Act.
That made the federal permitting process simpler for the development of energy resources.
“The lower inflation, the lower cost of regulation, that’s going to make it cheaper for U.S. producers to make oil,” Flynn explained. “They can start putting money into producing oil, instead of paying lawyers, which I think would be good for everybody.”
Flynn says the Biden Administration’s war on American energy producers stifled domestic energy production and left the country more vulnerable to overseas turmoil such as the fighting between Israel and Iran. Iran is a major oil producer itself and its threat to cut off the Straits of Hormuz threatened oil markets worldwide.
The answer, Flynn explained, has always been America producing more of its own energy.
“Now that we the chance to not have that threat overhanging our economy, that’s a huge positive thing,” he said.
Overseas threats to energy supplies aside, Flynn points out that developing dramatically more energy will be crucial to developing energy-hungry technologies of the future, such as artificial intelligence.
“We have to get back to common sense energy policies,” he said. “I think we’re on the right track, and we’re already seeing that show up in the price. Instead of prices going up, prices have been going down for oil.”