Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Time for today's Q and A of the day about
the US Strategic Petroleum Reserve. This is brought to you
by Melissa Ashes Checkmark Collections. Each day I feature a
listener question sent by one of these methods. You may
email me Brian mud at iHeartMedia dot com, head me
up on social at Brian led Radio, get her Parlor Twitter.
(00:20):
You may also use the iHeartRadio talk back feature. Just
go to WJNO inside of the iHeartRadio app, tap on
the microphone button. You may lay down your message right there,
perhaps for a future Q and A Today's note. This one, Hi, Brian,
I want to run something by you. The US government
has been selling millions of barrels of oil in order
(00:41):
to soften the worldwide price increase. I'm estimating that the
sales will produce about fifteen to twenty billion dollars approximately
two hundred and fifty million barrels sold and increased revenue.
Shouldn't this money be returned to the people whose money
was used to purchase it, ie taxpayers. It's not a
large amount for taxpayer, but I feel that the principle
(01:04):
requires it to be returned to us who funded the
original purchase. Okay, right, So there are many considerations in
play as we evaluate President Biden's most recent announcement on
oil releases. This week is the president's announcement of the
release of fifteen million barrels ahead of his previously announced schedule,
(01:26):
purely a political play, three weeks in advance of the midterms.
Will it really have a meaningful impact at the pump anyway?
As US national security compromised with the lowest oil reserves
since nineteen eighty four, And you've introduced another one, where
does this money go once the oil is sold? And
addressing each of these questions, which are part of the
(01:48):
overall story, there are clear answers to these questions save
one the first. Yes. President Biden said on Wednesday that
this most recently time to announcement, just three weeks before
election day, wasn't political, that it was just his latest
(02:08):
effort to push to push on what he's been pushing on.
But apparently what he's been missing is is salt and
pepper and Joel, you want to do anything here?
Speaker 2 (02:22):
No, it's all you. You don't feel inspired, all you.
Speaker 1 (02:26):
You don't want to push it real good? No, all right,
I'm disappointed. So yeah, Biden hasn't learned to do it
real good, so apparently that he needs he needs somebody
else other than Joel in his life. Again, you can
certainly make your own assessment about what's going on here
(02:47):
from a point of political expediency. On the question of
whether it'll have an impact at the bump, that one
has been consistently clear. I'm going to take you back
to my initial reporting on Biden's releases in late March,
after the announcement that he would be releasing a million
barrels of oil per day starting May first, and my
story entitled oil releases have had no impact on today's
(03:11):
prices and why they don't work? I said this, I
could give you a detailed historical perspective of how this
policy has failed previously. However, you need to look no
further than the most recent one, which will illustrate the
point with an example that's fresh in your brain. On
November twenty fourth, President Biden announced the release of fifty
(03:31):
million barrels of oil from the reserve to attempt to
achieve lower prices. The price of US crewed was seventy
two dollars at the time he released the oil. On
December sixteenth, The fifty million barrels represents the equivalent of
fifty days worth of releases under the policy, which starts
next month. Fifty days from the release in December was
(03:52):
February third. The price of oil on February third was
ninety dollars, a twenty five percent price increase in fifty days.
With fifty million barrels of oil being released from the
reserve by the Biden administration. I'll spare you any additional
macroeconomic discussion by leaving it there. The example speaks for itself.
(04:12):
The bottom line is Biden is doubling down on bad
policy that's already failed under his administration. As long as
the US is importing millions of barrels of oil per
day from often hostile foreign actors, will remain at the
mercy of their actions at least as much as our own.
And so to the very facts in points which I
illustrated in that story over six months ago, when President
(04:35):
Biden began drawing down on our strategic reserves, oil was
at seventy two dollars per barrel. Today, eleven months after
releases began, it's at eighty seven dollars. Any questions, and
then there's the question as to whether the US is
compromised by the huge drawdown on our reserves, which exists
(04:56):
for the sole purpose of having the needed energy on
hand in the event of a national emergency. The answer
is overwhelmingly yes, and at least to the extent that
oil factors into our national security. It's been widely reported
that the Strategic Petroleum Reserve is being drawn down to
the lowest level since nineteen eighty four. However, that's only
part of the story. In nineteen eighty four, the United
(05:17):
States averaged oil consumption of fifteen point six million barrels
of oil per day. Most recently, we're using nineteen point
eight million barrels per day. In other words, while our
reserves are back to eighty four's levels, our consumption is
twenty seven percent higher today, making the eighty four comparison
not at all applicable. The drawn downs relative to US
(05:40):
consumption are the lowest since the United States first fully
established the Strategic Petroleum Reserve. In fact, while the United
States is the third most populist country in the world
with the highest oil consumption in the world, our reserves
are now only the eleventh eleventh highest in the world.
The United States is now as energy venerable as we've
(06:03):
been post World War Two. And then there's your question today,
where did the proceeds from these sales go. It'll probably
not surprise you to know that the federal government, which
has over thirty trillion dollars in debt, is quick to
spend these related proceeds. In fact, last year's infrastructure law
included partial funding from the sale of the Strategic Reserves.
(06:24):
As part of that law, money from future sales was
also to be used to modernize the spr That's the
other dirty little secret about these oil sales. The record
spending by Congress over the past couple of years has
banked on steady sales of oil. In many instances, these
oil sales aren't just part of Biden's effort to attempt
to temporarily manipulate energy prices here at home while limiting
(06:48):
our country's ability to produce and distribute energy within it.
It's been funding in small part is broader political agenda.
Speaker 2 (06:56):
When you started this Q and A today, what did
you say, President I was trying to do. It's apropos
because Republicans are pushing back after the CDC recommended COVID
vaccine shots. I'm going to play it under the headlines
you could you follow along, right, folks and follow along?
Speaker 1 (07:16):
Yeah, finally rock and roll Joel stepping up to the
plate here.
Speaker 2 (07:20):
This was a personal favorite of mine right around the
end of high school. I think it's about eighty eight ish.
I finished eighty second.
Speaker 1 (07:26):
Fairs right in your wheelhouse and you left me hanging.
Speaker 2 (07:29):
Today, I know the song's been in my head almost
like for the second part of the week.
Speaker 1 (07:35):
Yeah, because ever since I brought it up.
Speaker 2 (07:37):
Yes,
Time for today's Q and A of the day about
the US Strategic Petroleum Reserve. This is brought to you
by Melissa Ashes Checkmark Collections. Each day I feature a
listener question sent by one of these methods. You may
email me Brian mud at iHeartMedia dot com, head me
up on social at Brian led Radio, get her Parlor Twitter.
(00:20):
You may also use the iHeartRadio talk back feature. Just
go to WJNO inside of the iHeartRadio app, tap on
the microphone button. You may lay down your message right there,
perhaps for a future Q and A Today's note. This one, Hi, Brian,
I want to run something by you. The US government
has been selling millions of barrels of oil in order
(00:41):
to soften the worldwide price increase. I'm estimating that the
sales will produce about fifteen to twenty billion dollars approximately
two hundred and fifty million barrels sold and increased revenue.
Shouldn't this money be returned to the people whose money
was used to purchase it, ie taxpayers. It's not a
large amount for taxpayer, but I feel that the principle
(01:04):
requires it to be returned to us who funded the
original purchase. Okay, right, So there are many considerations in
play as we evaluate President Biden's most recent announcement on
oil releases. This week is the president's announcement of the
release of fifteen million barrels ahead of his previously announced schedule,
(01:26):
purely a political play, three weeks in advance of the midterms.
Will it really have a meaningful impact at the pump anyway?
As US national security compromised with the lowest oil reserves
since nineteen eighty four, And you've introduced another one, where
does this money go once the oil is sold? And
addressing each of these questions, which are part of the
(01:48):
overall story, there are clear answers to these questions save
one the first. Yes. President Biden said on Wednesday that
this most recently time to announcement, just three weeks before
election day, wasn't political, that it was just his latest
(02:08):
effort to push to push on what he's been pushing on.
But apparently what he's been missing is is salt and
pepper and Joel, you want to do anything here?
Speaker 2 (02:22):
No, it's all you. You don't feel inspired, all you.
Speaker 1 (02:26):
You don't want to push it real good? No, all right,
I'm disappointed. So yeah, Biden hasn't learned to do it
real good, so apparently that he needs he needs somebody
else other than Joel in his life. Again, you can
certainly make your own assessment about what's going on here
(02:47):
from a point of political expediency. On the question of
whether it'll have an impact at the bump, that one
has been consistently clear. I'm going to take you back
to my initial reporting on Biden's releases in late March,
after the announcement that he would be releasing a million
barrels of oil per day starting May first, and my
story entitled oil releases have had no impact on today's
(03:11):
prices and why they don't work? I said this, I
could give you a detailed historical perspective of how this
policy has failed previously. However, you need to look no
further than the most recent one, which will illustrate the
point with an example that's fresh in your brain. On
November twenty fourth, President Biden announced the release of fifty
(03:31):
million barrels of oil from the reserve to attempt to
achieve lower prices. The price of US crewed was seventy
two dollars at the time he released the oil. On
December sixteenth, The fifty million barrels represents the equivalent of
fifty days worth of releases under the policy, which starts
next month. Fifty days from the release in December was
(03:52):
February third. The price of oil on February third was
ninety dollars, a twenty five percent price increase in fifty days.
With fifty million barrels of oil being released from the
reserve by the Biden administration. I'll spare you any additional
macroeconomic discussion by leaving it there. The example speaks for itself.
(04:12):
The bottom line is Biden is doubling down on bad
policy that's already failed under his administration. As long as
the US is importing millions of barrels of oil per
day from often hostile foreign actors, will remain at the
mercy of their actions at least as much as our own.
And so to the very facts in points which I
illustrated in that story over six months ago, when President
(04:35):
Biden began drawing down on our strategic reserves, oil was
at seventy two dollars per barrel. Today, eleven months after
releases began, it's at eighty seven dollars. Any questions, and
then there's the question as to whether the US is
compromised by the huge drawdown on our reserves, which exists
(04:56):
for the sole purpose of having the needed energy on
hand in the event of a national emergency. The answer
is overwhelmingly yes, and at least to the extent that
oil factors into our national security. It's been widely reported
that the Strategic Petroleum Reserve is being drawn down to
the lowest level since nineteen eighty four. However, that's only
part of the story. In nineteen eighty four, the United
(05:17):
States averaged oil consumption of fifteen point six million barrels
of oil per day. Most recently, we're using nineteen point
eight million barrels per day. In other words, while our
reserves are back to eighty four's levels, our consumption is
twenty seven percent higher today, making the eighty four comparison
not at all applicable. The drawn downs relative to US
(05:40):
consumption are the lowest since the United States first fully
established the Strategic Petroleum Reserve. In fact, while the United
States is the third most populist country in the world
with the highest oil consumption in the world, our reserves
are now only the eleventh eleventh highest in the world.
The United States is now as energy venerable as we've
(06:03):
been post World War Two. And then there's your question today,
where did the proceeds from these sales go. It'll probably
not surprise you to know that the federal government, which
has over thirty trillion dollars in debt, is quick to
spend these related proceeds. In fact, last year's infrastructure law
included partial funding from the sale of the Strategic Reserves.
(06:24):
As part of that law, money from future sales was
also to be used to modernize the spr That's the
other dirty little secret about these oil sales. The record
spending by Congress over the past couple of years has
banked on steady sales of oil. In many instances, these
oil sales aren't just part of Biden's effort to attempt
to temporarily manipulate energy prices here at home while limiting
(06:48):
our country's ability to produce and distribute energy within it.
It's been funding in small part is broader political agenda.
Speaker 2 (06:56):
When you started this Q and A today, what did
you say, President I was trying to do. It's apropos
because Republicans are pushing back after the CDC recommended COVID
vaccine shots. I'm going to play it under the headlines
you could you follow along, right, folks and follow along?
Speaker 1 (07:16):
Yeah, finally rock and roll Joel stepping up to the
plate here.
Speaker 2 (07:20):
This was a personal favorite of mine right around the
end of high school. I think it's about eighty eight ish.
I finished eighty second.
Speaker 1 (07:26):
Fairs right in your wheelhouse and you left me hanging.
Speaker 2 (07:29):
Today, I know the song's been in my head almost
like for the second part of the week.
Speaker 1 (07:35):
Yeah, because ever since I brought it up.
Speaker 2 (07:37):
Yes,
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