Remember the outrage when a handful of U.S. oil refineries closed in 2020?

If you don’t, that’s because there wasn’t any outrage. Oil and gasoline prices were blissfully low and the COVID-19 pandemic dominated the news. Hardly anybody noticed.

Energy investors certainly did, however, because 2020 was one of the worst years in history for energy producers. Exxon Mobil notched the first loss in its history, a gigantic $22 billion write-off. The five biggest U.S. oil refiners — Marathon Petroleum, Valero Energy, Exxon Mobil, Phillips 66, and Chevron — lost a combined $43 billion as COVID shutdowns worldwide produced an epic plunge in oil prices and energy demand.

This data on expected global demand for oil versus the actual demand shows how badly the oil industry crashed in 2020:

These days, many Americans blame President Biden for soaring gasoline and household energy prices because he has trash-talked fossil fuel energy as part of his push for a green energy transition. But economics, not politics, explains most of the current price surge, and the 2020 energy wipeout set the stage for painfully high prices now.

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Biden himself seems to lack a solid understanding of the economic fundamentals determining prices now. On June 15, he sent strongly worded letters to seven big oil refiners — the five biggest plus BP and Shell — complaining about the record profits they are now notching in addition to a tripling of profit margins during recent months.

“Your companies and others have an opportunity to take immediate actions to increase the supply of gasoline, diesel and other refined product,” Biden wrote. “Your companies need to work with my administration to bring forward concrete, near-term solutions that address the crisis.”

Exxon issued a terse statement in response to Biden’s inquiry, saying it has continued modest investments in refining capacity. It also said Biden could ease some regulations on an emergency basis, which would make it easier to move fuels around in the refining process. Exxon also encouraged “clear and consistent policy” on energy resources, a reference to permitting, leasing, and regulatory policies that change from president to president and discourage investors who don’t want to get trapped in a stark policy shift.