At the end of 2022, OPEC+ countries cut oil production by more than 2 million barrels per day (bpd), bringing today’s total cut to 3.66 million bdp. “Biden has limited options to respond to OPEC+’s oil cut,” reported Bloomberg News. 

The Hill reported the following regarding the impact of the OPEC+ decision on consumers:

“The surprise oil production cuts announced by a group of oil producers known as OPEC+ is expected to drive up gasoline prices in the coming weeks, which could create practical headaches for consumers and political headaches for President Biden.”

Andrew Lipow, president of consulting firm Lipow Oil Associates, told The Hill in April that the national gasoline prices, which stood at about $3.50 per gallon, would rise between 12 and 16 cents per gallon. As predicted, as of May 2, the national average price rose to $3.610 per gallon, an 11-cent increase within a month.

Tom Kloza, global head of energy analysis at the Oil Price Information Service, predicted an “immediate increase” of 10 to 12 cents per gallon. He added that the cuts also have the potential to contribute to further increases later in the year. 

California has the manpower and resources to mitigate economic risks, enhance its energy security, reduce its carbon footprint, and create new economic opportunities. California must take decisive action to reduce its dependence on foreign oil and chart a sustainable energy future for generations to come. Otherwise, we will always be at the mercy of foreign oil producers.