December 7, 2021
Kudlow: 'America has oil. Lots of it'

Kudlow: ‘America has oil. Lots of it’

President Biden spoke at the moment, promoting his new thought of placing 50 million barrels of oil from the Strategic Petroleum Reserve in the marketplace. That may cowl about three days’ price of oil consumption, plus some type of worldwide consortium of international locations making obscure guarantees and to this point producing just about nothing.

It is a horrible thought. Releasing 50 million barrels is like spitting within the wind. Now I’d such as you to listen to a key sentence within the president’s presser at the moment:

“The big part of the reason Americans are facing high gas prices [is] because oil producing countries and large companies have not ramped up the supply of oil quickly enough to meet the demand. And the smaller supply means higher prices globally – globally for oil. To address these issues, I got on the phone with leaders from other countries grappling with this challenge.”

Simply to repeat, as a result of “the big part of the reason Americans are facing high gas prices because oil producing countries and large companies have not ramped up the supply of oil quickly enough to meet the demand.”

Now, you realize what of us? President Biden is totally proper. There’s not sufficient oil manufacturing. Oil provides are too low in relation to rising oil demand. However there’s one factor he forgot.

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America has oil. Lots of it. In reality, pre-pandemic we have been producing over 13 million BPDs (barrels per day). When the economic system was closed, that slumped to 11 million BPD. However because the economic system has reopened with sturdy development, we’re nonetheless solely producing 11 million BPD. Why is that, Mr. President?

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As traditional, Mr. Biden is taking part in the blame recreation. Blame the Saudis. Blame OPEC+. Blame Russia. Blame fuel stations. After which blame America. As a result of in ‘Biden World, America must cease producing fossil fuels, like oil, with the intention to clear the way in which for local weather change reforms. So you’ll be able to’t have your cake and eat it too, sir.

If you happen to accurately determine insufficient oil manufacturing provides, then you have to come house to America and let our nice firms, giant and small, produce. proper? We want extra provides. proper? How about, America first. Drill, drill, drill. Do not forget that? Not spro, spro, spro, however drill, drill, drill. There is a distinction.

Your insurance policies are taxing fossil fuels, over-regulating fossil fuels, bad-mouthing fossil fuels, denying credit score to fossil fuels, appointing a banking commissioner who needs to bankrupt fossil fuels. You may do something you’ll be able to to cease the manufacturing of fossil fuels and but you say the issue is insufficient manufacturing.

Get it, of us? Make sense? In fact not. Not even remotely. No ANWR, no Willow, no XL pipeline, no Line 5, no nothing. So guess what? If you are going to penalize all the things they do, then producers will not produce. Is not that simply widespread sense?

Remember Mr. Biden and his cronies need to spend $550 billion to cease fossil fuels and subsidize renewables. That loopy thought is within the loopy finances, which, of course, should be killed.

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Now here is the most recent one: Two Republicans on the Federal Commerce Fee (FTC) requested the White Home to reveal any mounting proof of wrongdoing behind excessive fuel costs after President Biden urged the company to dig deeper into attainable unlawful conduct available in the market. The GOP commissioners wished the White Home to share the proof in order that we would take into account the right way to proceed.

Final week, Biden informed his new FTC chair, Lina Khan, that there was mounting proof of anti-consumer conduct by oil and fuel firms. Okay, present me. Present me the proof. Present me the cash. Hassle is, at the very least to this point, there isn’t a proof. And there isn’t any cash.

Right this moment, Mr. Biden accused oil firms of — maintain on a second — dododo — extra earnings! Why did I do know that was coming? Value gauging and extra earnings are at all times the rallying cry of the progressive left who hate earnings. Proper?

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Markets love earnings. Enterprise and the economic system develop by increased earnings. Earnings are the mom’s milk of shares and the lifeblood of the economic system.

However wait a minute. Here is our pal, Senator Elizabeth Warren, in a letter to the DOJ. A headline reads: “Sen. Elizabeth Warren calls for probe into turkey costs as prices soar.”

Warren accuses poultry business of extreme consolidation AND price-fixing. It’s important to find it irresistible.

That is, by the way in which, the identical one that referred to as all bankers “a-holes” the opposite day. And now she thinks that turkeys are colluding with each other to boost their costs.

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Or the NBC reporter who mentioned the way in which to chop prices throughout Thanksgiving is to not purchase turkey. Very intelligent. In its place, perhaps we should always all exit and purchase Large Macs and spoon heavy portions of cranberry sauce on them. Simply to maintain the Thanksgiving taste gobble, gobble, gobble.

So, of us, the spro thought is a non-starter. Sarcastically oil costs went up over $2 at the moment on the announcement. Sorry, Uncle Joe – not purported to occur huh?

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Wish to see gasoline again to $2 the place it was a yr in the past? Or crude oil again to $45 or $50 the place it was a yr in the past? Then drill, drill, drill. I by no means understood why the left doesn’t perceive provide and demand curves. It is the premise of microeconomics. It is referred to as value concept. It is not even political or ideological. Any outdated textbook will inform you that. 

However not within the Biden White Home. Save America. Kill the invoice.

This text is customized from Larry Kudlow’s opening commentary on the November 23, 2021 version of “Kudlow.”

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