As to oil companies and refined fuel prices, additions to production and distribution infrastructure came under attack in January 2021. No new leasing of Federal lands and a de facto freeze on issuance of permits on already leased lands. Threats of an increase in corporate income tax of 33% from 21% to 28% and more recently threats of excess profits tax. The near disappearance of exploration and development expenses goes straight to the bottom line as a "windfall profit" as does increases in revenue from increases in global market prices before and after the invasion of Ukraine. So oil companies are suddenly rolling in the dough but are discouraged from spending it on increasing production from two directions: Stockholder demands for dividend payments rather than continuation of capital expenditures while looking down the barrel of production and distribution roadblocks led to cutbacks in investment in pursuit of production increases. Add the SEC chastising the capital markets in overt efforts to discourage equity and debt investments in the domestic oil and gas industry. Turn up the rhetorical heat, stir, and Viola, supplies are tightened in the face of level demand. The outcome is Econ 101, indeed.
Foy
