Odograph shared this surprising graphic about expectations of future gas prices from the Energy Information Administration in the comments section yesterday. Some of us were skeptical and today the oil industry says biofuel push may hurt prices at the pump:
Some executives warn that current fuel shortages could become a long-term problem, leading to higher gas prices.
The oil industry wonders why they should invest in more refinery capacity (i.e., supply) today if the US government will subsidize or mandate renewable substitutes in the future. One thing missing from the oil industry's assertion is that if renewable fuels fill the gap, supply of gas will increase and price will fall. The oil industry might be guilty of a bit of disingenuity on this one. Just a bit.
Note: this has nothing to do with today's high prices, as the article title and some in Congress might suggest.