Biden’s Energy Policies Result in $250 Billion GDP Loss for U.S.

President Joe Biden’s aggressive stance against the oil and gas industry has cost the United States over a quarter of a trillion dollars in lost economic activity, according to a new study released by the Committee to Unleash Prosperity. The study highlights the significant economic and national security repercussions of Biden's energy policies.

The study, conducted by Stephen Moore, Co-Founder of the Committee to Unleash Prosperity, and Casey Mulligan, Ph.D., Professor in Economics at the University of Chicago, points out that U.S. oil production under Biden has not matched the growth trajectory seen during former President Donald Trump’s administration.

While the U.S. is producing more oil now than ever before, the increase is marginal compared to the production levels in 2019, before the COVID-19 pandemic. “The Energy Information Agency had predicted that the U.S. could produce as much as 15 million barrels of oil under current trends,” the study found. However, in the second half of 2023, U.S. daily oil production averaged only 13.2 million barrels, close to the peak under Trump but not significantly higher.

• The average price of a barrel of oil has been $72 under Biden, compared to $54 under Trump, indicating higher costs for consumers.

• Productivity per new well surged by 23% under Trump but declined significantly once Biden took office in January 2021.

The study attributes this decline to “rising extraction costs, increased regulation, tax hikes, and investor reluctance to fund petroleum companies.” The impact of these policies has been substantial, with the U.S. producing at least 2.4 billion barrels less than it could have if production trends had continued as under Trump. This shortfall, combined with increased extraction costs, has reduced the cumulative GDP by about $250 billion.

Furthermore, the study underscores the geopolitical and national security implications of Biden’s policies. “Anti-energy policies in the United States enrich the major oil producers in Asia and the Middle East, some of whom use their wealth to fund terrorism,” the report states. The reduction in U.S. shale activity has given OPEC more pricing power, limiting America's ability to counteract OPEC production cuts with its own production increases.

Stephen Moore emphasized the broader consequences of these policies. “This report makes it clear that the left’s radical agenda, led by Biden’s policies, are self-inflicted wounds that are directly contributing to the current economic challenges and rising energy costs hurting millions of working Americans across the country,” he said.

The findings of this study highlight the urgent need to reassess and reform U.S. energy policies to ensure economic stability, national security, and the welfare of American citizens.

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