Will Trudeau follow Biden in attacking the oil sector？
Episode Stats
Words per Minute
196.04471
Summary
Joe Biden is mad at oil and gas companies for not making more profit in the USA and threatens to punish them for not doing what he wants. The idiocy of this approach runs deep and exposes a total lack of basic economic understanding on the part of Joe Biden.
Transcript
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I mean, the cognitive dissonance. It was stunning to behold as President Biden berated oil and gas
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companies for their daring to make profits and apparently not investing properly into the USA.
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This is in his own words. This is Biden. He said, the oil industry has a choice. Either invest in
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America by lowering prices for consumers at the pump and increasing production and refining
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capacity. That's a key part. Or pay a higher tax on your excessive profits and face other
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restrictions. The gall is beyond the pale. Maybe it's not so much cognitive dissonance as
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cognitive disability. That's an issue with Biden, leading Biden to chase oil companies for not
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increasing production when he spent his entire presidency so far trying to force oil companies
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to lower production. Biden's very first act in office was to shut down the Keystone XL pipeline
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project. Billions of dollars had been invested in years dedicated to that line. It was killed by
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the president with the stroke of a pen. Biden was making it clear then and there that he would not
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fight, that he would fight, if not outright block any expansion of oil and gas infrastructure in the
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United States. And now here he is pissing and moaning and threatening to punish oil and gas
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companies for doing what he wanted them to. The idiocy of Joe Biden's approach runs deep and exposes a
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total lack of understanding of basic economics on Joe Biden's part. Oil and gas companies took a beating
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in the last decade. They lost billions of dollars while the oil prices were $10 and lower per barrel
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and government regulations made production financially unviable. Now that they can finally
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recoup some of those losses, Biden's threatening to steal those profits from them through taxation.
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Now if Biden hits oil companies with a punitive tax, guess what's going to happen? Those companies
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will reduce what expansion they're doing and they'll cut their production. Why should they risk more
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dollars if the president's just going to steal the profit in any way? Investors of course flee. Our current
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energy crisis is due to a lack of supply and Biden's taking an approach that would actually reduce supply.
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Pouring more money into green renewables won't solve this problem. If that worked, Germany wouldn't be
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moving back into coal today for their energy sources after they've spent billions of dollars on wind and
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solar. Nationalizing the industry won't work. Just ask Venezuelans how that worked out. They have some of the
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richest oil reserves on earth and are suffering under fuel shortages and rampant poverty of course.
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Only government management of an industry can pull off such a disaster. They're literally ate their zoo
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animals there guys. Governments need to get out of the way. They need to cut the onerous regulations
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dumped on energy companies and make investors confident that capital projects will be allowed
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to finish and that they can get a return on their investment. In other words, they need to do the
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opposite of what Biden's doing. Now let's pivot to our own domestic idiot who has a deficit in economic
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understanding as well. Yes, I'm talking about Prime Minister Justin Trudeau and he's an impressionable
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little man he likes to follow. So rest assured he's watching Biden and thinking about how he could
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implement a similar policy. Justin's father tried to take control of the energy sector with his
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disastrous national energy program. The NEP caused thousands of bankruptcies while bleeding Alberta
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of nearly a hundred billion dollars at the start of the 1980s. Justin would love to succeed where his
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father failed when it comes to energy. Unfortunately, Justin can only replicate what his father did.
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He can't make a national energy program work because the model is fatally flawed. Can we expect Trudeau to
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realize this though? I wouldn't bet on it. Trudeau is still trying to borrow and spend Canada into
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prosperity. Inflation is running rampant and the government's getting back into a corner as the
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higher interest rates make servicing the federal debt untenable. Justin's going to be tempted to
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make a grab for Western resources and he likely won't be able to resist himself. All we can do now
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is hope somebody somehow talks some sense into Joe Biden and gets him to reverse course. Otherwise,
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he and Trudeau will tag team to send North America energy capacity back into the dark ages as the
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winter approaches. Here's today's ag report from Wintry Lethbridge. Cash barley straining at $4.55,
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feed wheat is off a couple bucks at $4.73 and corn is lower at $4.75 for metric ton. In the milling
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wheat markets, December Minneapolis futures dropped 41 cents at $9.48 with local harder at spring bid for
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November-December movement at $12 per bushel. In the oil seeds, nearby canola futures are higher $7.70
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at $8.91 per ton, with delivered values for December movement at $20 per bushel. In the pulse
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markets, nearby red lentil prices are trading at $0.34 per pound and yellow peas remain at $13 per bushel.
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In the cattle markets, December live cattle are lower $0.47.5 at $1.51.48 per hundred weight.
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For more information on fob farm options, give me a call at 403-394-1711. I'm Matt Busiekum at
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Marketplace commodities, accurate real-time marketing information and pricing options.
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