WASHINGTON - Gas prices are not going up because of the Keystone Pipeline cancelation or because the Biden administration paused oil extraction permits.
The real reasons are more complicated than that.Last year, with the U.S. and much of the world shut down for the pandemic, driving and travel cratered – and with it, the demand for oil and gas.
Gas prices sharply dropped, so the oil producers cut way back on production.The U.S. reduced production by a million barrels a day, and OPEC Plus nations reduced production by 10 million barrels a day.
Then, as the pandemic eased and people who had saved up their money were hungry to travel after being pent up for so long, demand shot way up.