Is Biden To Blame For High Gas Prices? Here's What Oil Execs Say

Gas prices recently hit all-time highs in the United States as pressures from the Russian invasion of Ukraine pushed the cost of oil higher.

Oil and gas companies like Chevron Corporation (NYSE: CVX) and Exxon Mobil Corp (NYSE: XOM) have benefitted from this rise in oil prices, with stock prices following suit.

Many people have blamed President Joe Biden and his administration for the high prices. So is it really Biden’s fault that gas prices are so high? 

Not Exactly: The Dallas Federal Reserve recently surveyed more than 100 executives from different oil and gas firms. The Dallas Fed asked the executives why publicly traded oil producers are restraining growth despite high oil prices, and the results are surprising. 

More than half of the 132 executives said that investor pressure to maintain capital discipline was the top reason that the oil and gas companies are not expanding production. This means that investor pressure is causing the companies to be more conservative in terms of growing production. 

Only 6% of respondents said that government regulations were holding the oil and gas companies’ production back. Eight percent of the executives said that lack of access to financing was the reason that production is not being increased, while 11% cited environmental, social and governance issues. To see the full results of the survey, visit the Dallas Federal Reserve’s website here. 

Since hitting highs of more than $130 a barrel, crude oil prices have moved lower and are now around $115 a barrel. Still, if oil prices stay elevated, gas prices will remain high. 

One thing that could bring gas prices lower would be expanding the production of oil in the United States. Even JP Morgan Chase & Co (NYSE: JPM) CEO Jamie Dimon has pressured Biden to increase energy production. But, according to the Dallas Fed’s findings, it may be investors holding the oil and gas companies back, not the government.