Primarily for political reasons, President Biden decided to tap the Strategic Oil Reserve today, thereby hoping to check the recent rising price of gasoline and to combat inflation; the latter, of course, is expected as we recover from the economic impacts of the pandemic.
Most experts seem to believe that Biden's decision will have a minimal impact on the cost of gas, especially due to the increasing demand associated with travel during the Holidays. Some of us wonder why we are worrying about the price of oil at a time when we are attempting to reduce our dependence on fossil fuels.
Oil has an economic price but it also has an environmental one. If higher oil prices reduce its use, all the better. Furthermore, clean energy becomes more attractive as the price of oil rises. In the end, it is best for all of us if we reduce our use of fossil fuels; higher oil prices should incentivize that behavior.
