by Daniel Stefanski | Dec 15, 2023 | Economy, News
By Daniel Stefanski |
On Wednesday, Republican lawmakers held a press conference to announce their plan to “ease the financial burden hitting hardworking Arizonans when they fill their gas tanks…by addressing fuel blend requirements in Arizona.”
The fuel blend issue at Arizona pumps has long been a point of contention between legislative Republicans and the Hobbs’ administration, leading to this proactive attempt at a solution on the lawmakers’ side. According to the press release issued by the State Senate Republican Caucus, “Arizona is required to provide drivers in Maricopa County a specific fuel blend for cooler season months and a different fuel blend specific for warmer season months.” The blend employed by the state during spring and summer is “Cleaner Burning Gas” (CBG) – a boutique blend dictated by statute and procured from outside the state, which can lead to shortages and higher prices for consumers filling up their tanks at critical times of the year.
Faced with this issue of a very limited set of approved fuel blends, Arizona legislative Republicans announced that they had “identified eight comparable blends” in their free-market proposal to allow “as many fuel blends as possible.”
“We believe the EPA can and should approve those blends for use, as they provide nearly identical clean air benefits as CBG,” said Senate President Warren Petersen. “Providing multiple fuel options allows the market to compete during unexpected shortages and helps keep gas prices low for Arizona drivers.”
Senator Justine Wadsack, the bill’s sponsor, added, “The Legislature was not made aware of the shortage until after it had happened. As part of our plan, we’re proposing the Legislature be immediately notified if a waiver is requested by refineries, and that the Senate President and House Speaker are provided the authority to file a waiver request directly with the EPA. Hardworking Arizonans are struggling in this economy. Turning a blind eye to crippling gas prices is like throwing salt on their wounds. As lawmakers, we should do everything in our power to improve the lives of our citizens who elected us to represent them.”
The issues raised by Wadsack refer to previously induced information this year that the Governor’s Office was convinced by the EPA not to submit a waiver for an “alternative fuel type to provide an adequate supply for drivers and preventing a hike in gas prices,” despite oil companies warning state officials of significant refinery shutdowns and past Arizona Governors applying for and receiving that opportunity. According to Senate Republicans, “this catastrophe reduced the supply of the CBG (fuel blend).”
In an exclusive statement to AZ Free News, Representative Austin Smith said, “I applaud my fellow freedom caucus colleagues, Kolodin and Wadsack, for being the leaders on this issue. Every Arizonan, specifically in Maricopa County, has felt the pain at the pump under the Biden administration. Katie Hobbs could have led on this issue with requesting a waiver from the EPA, but failed to do so. As Vice Chairman of the House Energy committee, I look forward to seeing the proposals come forward this upcoming session. It’s the upmost importance to deliver real solutions to working Arizona families where we can.”
Earlier this year, Senator Jake Hoffman unleashed a blistering rebuke of Hobbs’ reported failure “to do the right thing by requesting this waiver to allow prices at the pump to drop.” Hoffman’s statement followed the aforementioned accounts of a letter that had been sent to Hobbs in March by independent petroleum refiner HF Sinclair, warning the state’s chief executive “of a critical supply shortage in Arizona due to an unexpected equipment failure stopping the production of CBG required by the Biden Administration in Maricopa County, as well as parts of Pinal and Yavapai Counties.”
At the time, Hoffman said, “Katie Hobbs’ incompetence as Arizona’s Governor continues to take center stage, and hardworking Arizonans are paying the price for it. The average price for a gallon of gas right now in Maricopa County is a full $1 higher than the national average. This is extra money that could help with groceries, medications and other necessities many of our taxpayers are having a difficult time affording because of the Biden Administration’s reckless policies leading to historic inflation.”
Senator Shawnna Bolick, who also attended the Wednesday press conference, told AZ Free News that “earlier this year, a proposed waiver that would have helped Arizonans save millions at the pump was rejected by an unelected government bureaucracy. During the critical supply shortage of CBG this spring it would have been invaluable to have this legislation to increase the availability of multiple gas blends instead of the current monopoly. It is time to remove unnecessary excessive red tape and open the market to competition to help Arizonans counter the Biden inflationary economy.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
by Corinne Murdock | Dec 5, 2023 | Economy, News
By Corinne Murdock |
Rep. Eli Crane (R-AZ-02) says that President Joe Biden’s energy policies are to blame for the burgeoning energy and national security crises.
Crane linked the crises to “idiotic” actions by the Biden administration, citing the cancellation of the Keystone XL pipeline, ban on drilling on federal lands, and the resulting depletion of the Strategic Petroleum Reserve (SPR).
“The Biden Admin has sabotaged American energy & compromised our national security,” said Crane. “Not to mention, these idiotic moves impose crippling costs on Americans.”
Gas prices in Arizona average about $3.40, a decline from last year’s average of $3.90. The national average was lower as of the latest federal data, at about $3.20. Arizona’s average gas price reached a record high last March, surpassing the previous high set in June 2008.
Biden canceled the Keystone XL pipeline on his first day in office by revoking the permit necessary for the pipeline’s completion through executive order. About a week later, Biden issued another executive order paving the way for a ban on new oil and gas leases on public lands and waters. That ban has not come to fruition, though the administration has added other burdens to the oil industry.
In July, the Biden administration announced new rules that would increase the cost that oil companies must pay to drill on public lands by over 16 percent — ending a century-long rate of about 12 percent — and end the renewal of unused permits.
When the Russo-Ukrainian conflict escalated last year with Russia’s invasion into Ukraine, the Biden administration began tapping into the SPR to mitigate the resulting rise in oil prices.
The strategy resulted in a 40-year record depletion of the reserve, at 180 million barrels. Last week, the Department of Energy (DOE) reported that it bought back nearly nine million barrels.
According to the U.S. Energy Information Administration (EIA) monthly data, domestic crude oil production increased at a greater rate under Trump than the past two years under Biden.
Under Trump (thousand barrels):
- 2017 produced 3.4 million; by September produced 2.5 million
- 2018 produced 3.9 million; by September produced 2.9 million
- 2019 produced 4.4 million; by September produced 3.3 million
- 2020 produced 4.1 million; by September produced 3.1 million
From 2017 to 2018, there were over 581,000 more barrels produced. From 2018 to 2019, there were over 496,000 more barrels produced. 2020 marked a decline, with about 351,000 less barrels produced. The first three months of 2020, prior to the pandemic’s likely impact, reflected record productions of crude oil that were higher than the first three months of this year’s production levels.
Under Biden (thousand barrels):
- 2021 produced 4.1 million; by September produced 3 million
- 2022 produced 4.3 million; by September produced 3.2 million
- Amount in 2023 produced so far (as of September): nearly 3.5 million
From 2021 to 2022, there were 234,000 more barrels produced. So far this year, there have been about 281,000 more barrels produced.
The Biden administration has made clear its commitment to swapping oil for total electrification. Their goal aligns with a globalist commitment to achieve net zero emissions by 2050.
Over the weekend, the Biden administration announced a new rule to reduce methane emissions from oil producers.
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
by Daniel Stefanski | Dec 5, 2023 | Economy, News
By Daniel Stefanski |
Another economic boon is coming to Arizona.
On Thursday, it was announced that Amkor Technology would be bringing a multi-billion-dollar campus to Peoria in the next few years. The company will be partnering with Apple to package and test silicon.
The new Amkor campus is expected be a $2 billion investment and create 2,000 jobs. The Peoria City Council will have to approve the development agreement in 2024.
The Chief Operating Officer for Apple, Jeff Williams, also noted the announcement in a press release for his company. Williams said, “Apple is deeply committed to the future of American manufacturing, and we’ll continue to expand our investment here in the United States. Apple silicon has unlocked new levels of performance for our users, enabling them to do things they could never do before, and we are thrilled that Apple silicon will soon be produced and packaged in Arizona.”
Governor Katie Hobbs weighed in on the news for her state, stating that this project would “be one of the most significant semiconductor investments in the U.S.” and that it would “solidify our state’s leadership in the semiconductor industry – reshoring an essential part of our supply chain to the United States.”
“Expansion of a US semiconductor supply chain is underway, and as the largest US-headquartered advanced packaging company, we are excited to lead the charge in bolstering America’s advanced packaging capabilities,” said Giel Rutten, Amkor’s president and chief executive officer. “Semiconductor companies, foundries, and other supply chain partners understand the need to strategically broaden their geographic footprint. The announcement of our new advanced packaging and test facility in Arizona is a clear signal of our intent to help our customers ensure resilient supply chains and be a part of a strong American semiconductor ecosystem.”
According to Amkor’s press release, the company has “secured approximately 55 acres of land with intent to build a state-of-the-art manufacturing campus with more than 500,000 square feet of clean room space.”
The announcement from Amkor follows a years-in-the-making project for the Taiwan Semiconductor Manufacturing Company’s (TSMC) construction of a facility in north Phoenix, just outside of Peoria. TSMC’s investment is $40 billion and is expected to create thousands of additional jobs for the area. The facility is expected to start production of the semiconductor chips, that will be then tested and packaged by Amkor, in 2025, providing the company fills its quota of workers.
Peoria Mayor Jason Beck welcomed the announcement from Amkor and Apple, saying, “It is no secret that our nation is reshoring its advanced manufacturing industries. We are proud of Peoria’s global leadership in this movement, and the significant capital investment and quality jobs that it brings to our community. This tremendous announcement is a credit to the City Council’s commitment to economic development, and staff’s hard work and dedication on this project.”
This facility won’t likely be the last significant business and investment coming to Beck’s city. The Mayor’s TYR Tactical is one of Peoria’s largest employers, and he used that experience to shape his economic development vision for Peoria’s future. He campaigned on the construction of a city owned airport “that will create thousands of jobs and billions in economic impact” for Peoria, as well as the “creation of culture that is not only Pro Business but moves at the speed and efficiency of business.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
by Daniel Stefanski | Dec 4, 2023 | Economy, News
By Daniel Stefanski |
Americans are paying the price for an economy seemingly in decline.
A recent study, released by CBS News, showed that “the typical American household must spend an additional $11,434 annually just to maintain the same standard of living they enjoyed in January of 2021, right before inflation soared to 40-year highs.”
These numbers showed that Arizona has experienced the high-end of inflation and added cost-of-living expenses for residents. On average, Arizona households must spend $13,329 more than they did in January 2021. Only two states, Utah and Colorado, are ahead of Arizona.
One of the contributing factors to the higher costs of living in the Grand Canyon State might be the prices at gas pumps, which have consistently been more than many other states in America. Throughout 2023, Republicans at the Arizona Legislature have attempted to get to the bottom of the reasons for the above-average prices for gas. Earlier this fall, the Joint Legislative Ad Hoc Study Committee on Air Quality and Energy convened to hear from Michelle Wilson, the Regulatory Compliance Administrator for the Arizona Department of Weights and Measures.
After the hearing, the Committee issued a press release to publicize that Wilson “admitted the Hobbs Administration was passive when oil companies in March warned of refinery shutdowns,” adding “that according to Wilson, for the first time in five years, the Governor’s office received a request from refineries to ask the EPA for a waiver, allowing for an alternative fuel type to provide an adequate supply for drivers and preventing a hike in gas prices.” Yet after the Governor’s Office “had conversations with the EPA about submitting a request for a waiver, … the EPA convinced Hobbs to not submit one.”
“Rather than making a case on behalf of Arizonans struggling to fill their tanks with prices hitting $5 per gallon, Governor Hobbs chose to not push back against the EPA and was complicit with the Biden Administration’s pro-inflation, radical environmentalist agenda,” said Senator Sine Kerr, the Committee’s co-chair. “As a result of Hobbs’ inaction, Maricopa County drivers were forced to shell out an extra several hundred million dollars just to get to their destinations during this supply disruption.”
The national average for gas prices, as of November 29, is $3.246 for a regular gallon of gas, which is down from last year’s average of $3.521 at the same time. Arizona clocks in at above average at $3.490, down from $4.055 at this time in 2022.
The state’s cost of living is regarded as one of the country’s highest, regardless of the study used to compute the ranking. The MERIC 2022 Cost of Living Index shows Arizona as 37th (out of 50) while RentCafe has the state’s costs at six percent higher than the national average.
Arizona’s housing market is also a contributing factor to the state’s high cost of living. According to Redfin, the median sale price in Arizona is $438,000, compared to $414,633 for the entire U.S. market (as of October 2023).
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
by Daniel Stefanski | Nov 20, 2023 | Economy, News
By Daniel Stefanski |
The state of the United States economy continues to concern experts and Americans alike.
Earlier this week, the latest Consumer Price Index (CPI) from the Bureau of Labor Statistics noted that the American economy had experienced a 3.2% increase in inflation over the past year.
EJ Antoni, a public finance economist for the Heritage Foundation, reacted to the revelation, saying, “October was the fourth consecutive month of inflation outpacing monthly earnings growth. For 27 of the last 31 months, prices have risen faster than annual earnings. This decline in real earnings coupled with elevated borrowing costs from today’s higher interest rates have cost a typical American family the equivalent of about $7,400 in annual income under the Biden administration.”
A recent poll from Global Strategy Group, which was conducted for the Financial Times and the University of Michigan’s Ross School of Business, showed that 61% of respondents disapproved of the way Biden was handling the economy, while 55% believed that they are worse off since the start of his presidency. The largest concern of the group appeared to be with price increases to food (74%), and 75% believed that rising prices would pose the most significant threat to the American economy over the next six months.
The White House broadcasted a different perspective to the most recent report from the Bureau, stating that the numbers show “more progress bringing inflation down, with annual inflation now down by 65% from the peak.”
President Biden added, “Inflation has come down while the unemployment rate has been below 4% for 21 months in a row—the longest stretch in more than 50 years—while wages, wealth, and the share of working-age Americans with jobs are all higher now than before the pandemic.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
by Daniel Stefanski | Nov 18, 2023 | Economy, News
By Daniel Stefanski |
Americans are still paying a lot of money for their Thanksgiving meals this year.
This week, the American Farm Bureau released its report on the annual cost of Thanksgiving dinners. The numbers showed that the average cost in 2023 was $61.17, which was down slightly from 2022’s value of $64.05 – yet significantly higher than 2021 ($53.31) and also 25% more than 2019.
American Farm Bureau Federation President Zippy Duvall said, “While shoppers will see a slight improvement in the cost of a Thanksgiving dinner, high inflation continues to hammer families across the country, including the nation’s farmers. Growing the food families rely on is a constant challenge for farmers because of high fuel, seed, fertilizer and transportation costs, just to name a few.”
Duvall added, “While high food prices are a concern for every family, America still has one of the most affordable food supplies in the world. We’ve accomplished that, in part, due to strong farm bill programs. Although our focus is sharing time with family and friends this Thanksgiving, our thoughts also turn to encouraging Congress to double down on a commitment to passing a new farm bill with a modernized safety net to support those who raise the crops and livestock that supply Thanksgiving dinner and every dinner.”
The items comprising the makeup of this Thanksgiving dinner were turkey, stuffing, sweet potatoes, rolls with butter, peas, cranberries, a veggie tray, and a pumpkin pie with whipped cream.
According to the Bureau, the average prices of 16-pound turkeys fell 5.6% year-over-year to $27.35. A pack of one dozen dinner rolls was up 2.9% from 2022 to $3.84, and the cost of a 30-ounce can of pumpkin pie mix had increased 3.7% to $4.44.
The Bureau also expanded the menu for another cost estimate, adding boneless ham, Russet potatoes, and frozen green beans. This menu experienced a $23.58 price increase from the standard fare to top out at $84.75.
Where Americans live in the country also affects the prices they will pay for their Thanksgiving meal. Those in the western part of the nation experience above-average costs at $63.89 for the standard meal, while the expanded offering comes in at $87.75.
Prices for this survey were computed November 1-6, and were gathered from each state plus Puerto Rico.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
