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Speaker 1: Let's get to Ellen Walt, president of Transversal Consulting, Ellen,

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Speaker 1: thank you for joining us. He's doing this, he's taking

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Speaker 1: my crewed out of the Strategic Petroleum Reserve. And the

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Speaker 1: thing is about that that that surely is only a

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Speaker 1: short term solution for this. Exactly, it's it's entirely a

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Speaker 1: short term solution. And the move today to basically UM

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Speaker 1: do another fifteen million barrel release, and as I understand it,

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Speaker 1: that's actually the final release of them on eighty million

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Speaker 1: barrel barrel release that was introduced last March, and that

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Speaker 1: what they're doing is just extending this particular release to

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Speaker 1: December instead of doing it in October. So basically they're saying,

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Speaker 1: we're not going to complete the releases before the November

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Speaker 1: midterm elections. We're going to complete them after. Who doesn't

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Speaker 1: coincide with the introduction of OPEQUE plus this new UM

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Speaker 1: two million barrel per day cuts, so UM, I think

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Speaker 1: it may kind of often the impact of that. But

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Speaker 1: like you said, this is a temporary fixed because the

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Speaker 1: United States cannot continue to play, you know, swing producer

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Speaker 1: with its SPR because it will be drained at some point.

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Speaker 1: And the SPR was never intended as a method of

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Speaker 1: uh stabilizing oil prices. It was intended as to be

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Speaker 1: an emergency reserve of oil in the event of an emergency,

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Speaker 1: and this is not an emergency. This is just prices

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Speaker 1: are too high for our comfort level. Well, but also

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Speaker 1: we're three weeks out from a midterm election, and I

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Speaker 1: think the administration is extremely sensitive to that, especially after

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Speaker 1: it was caught a bit flat footed by this production

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Speaker 1: cut put in place by OPEK. Plus let's look forward, though, Ellen,

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Speaker 1: we heard a couple of weeks back that the administration

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Speaker 1: was at least open to the possibility of trying to

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Speaker 1: find a way to bring Venezuelan crewed back to the market.

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Speaker 1: Do you think that is likely? I really don't see

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Speaker 1: that as any kind of legitimate possibility, because, first of all,

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Speaker 1: the administration's planned to depend on a basically political one

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Speaker 1: eight in Venezuela, which I don't see as as any

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Speaker 1: kind of likely option here. But also Venezuelan crew the

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Speaker 1: Venezuelan oil industry is basically in an incredibly incredible state

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Speaker 1: of disrepair, and the amount of investment and time and

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Speaker 1: money and expertise that will be required to really get

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Speaker 1: it back to a level where it can make an

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Speaker 1: impact globally, is much further out than the Mintum elections

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Speaker 1: are even a potential second term for the Biden administration.

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Speaker 1: He's the White House. Also, Joe Biden taking a swipe

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Speaker 1: at oil companies too. Yeah, this seems like a particularly

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Speaker 1: odd policy at a time when you're act that the

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Speaker 1: administration's claims they're trying to incentivize oil company is to

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Speaker 1: produce more oil. They said that they're going to they

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Speaker 1: want to begin, uh, you know, re repurchasing oil for

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Speaker 1: the spr when prices are between I think sixty seven

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Speaker 1: and seventy two dollars barrel, and that's supposed to somehow

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Speaker 1: incentivized oil companies. I'm not really sure how that's an incentive,

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Speaker 1: because oil companies could sell that oil on the market

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Speaker 1: for much higher price. But continuing to brate oil companies

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Speaker 1: for how they're doing business is really not an effective

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Speaker 1: way of um incentivizing your domestic oil industry. Besides the

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Speaker 1: fact that prices are not the factor that is hampering

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Speaker 1: American oil production at this point. If you just look

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Speaker 1: at the things that oil companies are saying, what's really

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Speaker 1: hurting them at this point are problems with the supply chain,

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Speaker 1: the cost of labor or the cost of supplies, regulatory

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Speaker 1: impediments that are making it more difficult for them to

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Speaker 1: acquire new leases and get production started. Um, they're they're

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Speaker 1: facing shortages in terms of parts of steel. Steel Harris

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Speaker 1: our major factor here, and some of these things that

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Speaker 1: Biden administration could make a difference on, but it seems

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Speaker 1: to be choosing to just um, you know, complain and

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Speaker 1: lay the blame at the oil companies for something that

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Speaker 1: is really not their fault. It's interesting today that the

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Speaker 1: government reported a drop in both domestic crewed and gasoline supplies.

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Speaker 1: One of the reasons that we had a rally in

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Speaker 1: New York crew today something north of three. Ellen. Very

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Speaker 1: nice to have you on the program and to benefit

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Speaker 1: from your insight. Ellen Wald is president of Transversal Consulting,

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Speaker 1: joining us from Jacksonville, Florida here on a daybreak. Asia