In this episode, we dive into the latest piece of propaganda produced by the White House. Building on her tweet storm from over the weekend, which was used in President Biden’s presser on banning Russian oil, Press Secretary Jen Psaki put out a video onto social media. The video is yet another attempt to absolve the administration and the Democrat party from any responsibility for the price of gasoline or energy. They want to place all of the blame at the feet of President Putin of Russia and the greed of Big Oil.
There is a massive problem with her facts and her oversimplification of how the energy sector works. She seems either clueless, which is her own fault, or is intentionally duplicitous, which is on us if we let her get away with it. There is more to drilling for oil or natural gas than getting a permit.
Of the 9,000 leases she keeps quoting as being “available,” over 2,200 are currently tied up in legal battles with environmental groups. Nothing can be done while cases are pending and these cases can take years to litigate. Also, just because a company has a lease to a piece of land, doesn’t mean they have the ability to implement horizontal drilling rigs, which means they need to acquire additional leases, which the government has stopped issuing when Joe Biden took office.
Add to this, lots of bureaucratic red-tape created by this administration through the National Environmental Policy Act or the NEPA, who has to conduct an environmental impact study before any drilling may occur. These also take years to complete. Right now, there are over 4,600 of those leases waiting on approval.
As for natural gas, let’s chat about the time it take to acquire the right-of-ways necessary to install the infrastructure necessary (e.g., pipelines) to transport the gas from the well to where it can be processed. A company may have a lease to a piece of land, but do they have the necessary right-of-ways to build a pipeline to that well?
If the President really wanted to help Americans, he could ask his agencies to stop stalling and get the approvals pushed through so drilling could begin. Instead, we know the Democrat party, along with radical environmental groups, is doing all it can to embrace anti-fossil fuel policies. They don’t really care to help people unless it’s to get re-elected and then they continue to wage war on the lifeblood of our economy.
Finally, we need to understand energy is a futures market. People bet on what they think will happen to the cost in the future, based on what may be happening today. Yes, Russia’s invasion into Ukraine causes market fear and so they bet on the cost of oil rising. How do you combat that in a futures market? You do things that calm the market by making it easier to drill or to provide more product to the consumer. If Joe Biden promised he would open the drilling and re-instate the Keystone XL pipeline, the price of a barrel of oil would immediately begin to drop based on his word alone. The market reacts to what it thinks will happen versus what is happening at the moment.
In closing, to bring another does of levity to the show, we are once again treated to another Deep Thought with Kamala Harris. She really is lost on the world stage and doesn’t even seem to see just how ill-prepared she is to discuss anything significant.