Western Standard - Will Trudeau follow Biden in attacking the oil sector？

00:00:00.000 I mean, the cognitive dissonance. It was stunning to behold as President Biden berated oil and gas

00:00:06.500 companies for their daring to make profits and apparently not investing properly into the USA.

00:00:11.420 This is in his own words. This is Biden. He said, the oil industry has a choice. Either invest in

00:00:16.260 America by lowering prices for consumers at the pump and increasing production and refining

00:00:20.580 capacity. That's a key part. Or pay a higher tax on your excessive profits and face other

00:00:26.200 restrictions. The gall is beyond the pale. Maybe it's not so much cognitive dissonance as

00:00:31.920 cognitive disability. That's an issue with Biden, leading Biden to chase oil companies for not

00:00:37.760 increasing production when he spent his entire presidency so far trying to force oil companies

00:00:42.840 to lower production. Biden's very first act in office was to shut down the Keystone XL pipeline

00:00:48.000 project. Billions of dollars had been invested in years dedicated to that line. It was killed by

00:00:52.380 the president with the stroke of a pen. Biden was making it clear then and there that he would not

00:00:57.540 fight, that he would fight, if not outright block any expansion of oil and gas infrastructure in the

00:01:02.320 United States. And now here he is pissing and moaning and threatening to punish oil and gas

00:01:06.000 companies for doing what he wanted them to. The idiocy of Joe Biden's approach runs deep and exposes a

00:01:11.660 total lack of understanding of basic economics on Joe Biden's part. Oil and gas companies took a beating

00:01:17.500 in the last decade. They lost billions of dollars while the oil prices were $10 and lower per barrel

00:01:21.900 and government regulations made production financially unviable. Now that they can finally

00:01:26.400 recoup some of those losses, Biden's threatening to steal those profits from them through taxation.

00:01:31.000 Now if Biden hits oil companies with a punitive tax, guess what's going to happen? Those companies

00:01:35.160 will reduce what expansion they're doing and they'll cut their production. Why should they risk more

00:01:39.780 dollars if the president's just going to steal the profit in any way? Investors of course flee. Our current

00:01:45.000 energy crisis is due to a lack of supply and Biden's taking an approach that would actually reduce supply.

00:01:50.840 Pouring more money into green renewables won't solve this problem. If that worked, Germany wouldn't be

00:01:54.680 moving back into coal today for their energy sources after they've spent billions of dollars on wind and

00:01:59.580 solar. Nationalizing the industry won't work. Just ask Venezuelans how that worked out. They have some of the 1.00

00:02:04.740 richest oil reserves on earth and are suffering under fuel shortages and rampant poverty of course.

00:02:09.700 Only government management of an industry can pull off such a disaster. They're literally ate their zoo

00:02:14.220 animals there guys. Governments need to get out of the way. They need to cut the onerous regulations

00:02:19.240 dumped on energy companies and make investors confident that capital projects will be allowed

00:02:23.360 to finish and that they can get a return on their investment. In other words, they need to do the

00:02:27.140 opposite of what Biden's doing. Now let's pivot to our own domestic idiot who has a deficit in economic

00:02:32.680 understanding as well. Yes, I'm talking about Prime Minister Justin Trudeau and he's an impressionable

00:02:37.480 little man he likes to follow. So rest assured he's watching Biden and thinking about how he could

00:02:42.460 implement a similar policy. Justin's father tried to take control of the energy sector with his

00:02:46.320 disastrous national energy program. The NEP caused thousands of bankruptcies while bleeding Alberta

00:02:51.280 of nearly a hundred billion dollars at the start of the 1980s. Justin would love to succeed where his

00:02:55.540 father failed when it comes to energy. Unfortunately, Justin can only replicate what his father did.

00:03:00.500 He can't make a national energy program work because the model is fatally flawed. Can we expect Trudeau to

00:03:05.280 realize this though? I wouldn't bet on it. Trudeau is still trying to borrow and spend Canada into

00:03:10.420 prosperity. Inflation is running rampant and the government's getting back into a corner as the

00:03:14.380 higher interest rates make servicing the federal debt untenable. Justin's going to be tempted to

00:03:18.500 make a grab for Western resources and he likely won't be able to resist himself. All we can do now

00:03:22.800 is hope somebody somehow talks some sense into Joe Biden and gets him to reverse course. Otherwise,

00:03:27.700 he and Trudeau will tag team to send North America energy capacity back into the dark ages as the

00:03:33.200 winter approaches. Here's today's ag report from Wintry Lethbridge. Cash barley straining at $4.55,

00:03:40.220 feed wheat is off a couple bucks at $4.73 and corn is lower at $4.75 for metric ton. In the milling

00:03:46.660 wheat markets, December Minneapolis futures dropped 41 cents at $9.48 with local harder at spring bid for

00:03:52.960 November-December movement at $12 per bushel. In the oil seeds, nearby canola futures are higher $7.70

00:04:00.000 at $8.91 per ton, with delivered values for December movement at $20 per bushel. In the pulse

00:04:07.300 markets, nearby red lentil prices are trading at $0.34 per pound and yellow peas remain at $13 per bushel.

00:04:14.060 In the cattle markets, December live cattle are lower $0.47.5 at $1.51.48 per hundred weight.

00:04:20.780 For more information on fob farm options, give me a call at 403-394-1711. I'm Matt Busiekum at

00:04:29.200 Marketplace commodities, accurate real-time marketing information and pricing options.

00:04:34.000 You can become a Western Standard member for just $10 a month or $99 a year for unlimited access.

Western Standard - November 02, 2022

Will Trudeau follow Biden in attacking the oil sector？

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