THE TRUTH IS, IT TAKES MONTHS,
NOT DAYS FOR COMPANIES TO
INCREASE PRODUCTION.
THAT'S WHY THE NEXT PART OF MY
PLAN A SO IMPORTANT.
TODAY, I'M AUTHORIZING THE
RELEASE OF 1 MILLION BARRELS
PER DAY FOR THE NEXT SIX MONTHS
OVER 180 MILLION BARRELS, FROM
THE STRATEGIC PETROLEUM
RESERVE.
THIS IS A WARTIME BRIDGED
INCREASE OIL SUPPLY UNTIL
PRODUCTION RAMPS UP LATER THIS
YEAR.
>> MAYBE SOMEDAY THE ANSWER ONE
BE OIL, BUT PRESIDENT JOE BIDEN
ANNOUNCED THAT HE WILL BE
RELEASING OIL FROM THE COUNTRY
STRATEGIC PETROLEUM RESERVE,
QUOTE, ORDERING THEM TO RELEASE
UP TO 180 MILLION BARRELS OF
OIL, MAKING THE LARGEST RELEASE
FROM THE RESERVE AND ITS NEARLY
50 YEAR HISTORY.
THAT ANNOUNCEMENT CAUSED OIL
FUTURES TO FALL ABOUT FOUR AND
A HALF PERCENT TODAY, THOUGH
THE ADMINISTRATION HOPES FOR A
MORE SIGNIFICANT DROP TO
TRANSLATE INTO LOWER GAS
PRICES.
SECRETARY OF ENERGY JENNIFER IS
PART OF THE ORGANIZATION, AND
SHE JOINS ME NOW.
MADAM SECRETARY, OF COVERED
ENERGY POLICY FOR A WHILE, AND
WHAT ALWAYS HAPPENS IN THESE
SITUATIONS IF GAS PRICES GO UP,
THERE'S DISCUSSION OF ACCESSING
THE STRATEGIC PETROLEUM
RESERVE.
WHEN'S UP HAPPENING, AS THEY DO
A LITTLE BIT OR THEY DON'T DO
IT BECAUSE I'M ON THE YACHT TO
PUT ON THE MARKET TO GET
APPRECIABLE DECLINES IS SO
LARGE.
WHY WILL THIS WORK?
GIVEN THAT IN THE PAST, WE'VE
DECLINED TO DO IT.
>> FIRST OF ALL, I THINK IT'S
IMPORTANT TO REALIZE THAT HE
ANNOUNCED WAS A BRIDGE.
THIS WAS MAKING SURE THAT WE
CAN REPLACE THE OIL THAT HAS
BEEN TAKEN OFF OF THE MARKET,
AT LEAST A PORTION OF IT
BECAUSE OF THE WAR, WHILE WE
EXHORT THE DOMESTIC OIL AND GAS
PRODUCERS TO UP THEIR SUPPLY.
BECAUSE RIGHT NOW, WE HAVE A
SUPPLY MISMATCH.
SO THIS IS A SIX-MONTH BRIDGE
TO BE ABLE TO GET TO THE POINT
WHERE THE OIL AND GAS COMPANIES
HAVE HAD ENOUGH TIME TO BE ABLE
TO INCREASE SUPPLY.
>> SO, THE IDEA IS THAT WE'VE
GOT A BUNCH OF --
THERE'S A LOT OF SUPPLY THAT'S
NOT ONLINE.
THAT HAS TO DO WITH CAPITAL
INVESTMENT.
THE FOSSIL FUEL INDUSTRY WILL
SAY IT HAS TO DO THE REGULATION,
THAT'S LARGELY NONSENSE.
IT'S CAPITAL DISCIPLINE, PEOPLE
HAVE LOST THEIR SHIRTS AND
PASSED BOOM AND BUST CYCLES,
ESPECIALLY IN THE SHOW
DRILLING.
ON THE PLAY WHEN YOU HAVE TO
SAY ABOUT THE USE IT OR LOSE A
POLICY, AND HAVE YOU EXPLAIN
WHAT THAT MEANS ON THE FLIP
SIDE, TAKE A LISTEN.
>> SOUTH EXECUTE THIS FIRST
PART OF MY PLAN, I'M CALLING
FOR USE IT OR LOSE IT POLICY.
CONGRESS SHOULD MAKE COMPANIES
PAY FEES ON WELLS ON FEDERAL
LEASES THAT THEY HAVEN'T USED
IN YEARS.
AND THE ECHOES OF PUBLIC LAND
THEY ARE HOARDING WITHOUT
PRODUCTION.
COMPANIES THAT ARE ALREADY
PRODUCING FROM THESE WELLS
WON'T BE AFFECTED.
BUT THOSE SITTING ON UNUSED
LEASES AND IDLE WELLS WILL
EITHER HAVE TO START PRODUCING,
OR PAY THE PRICE FOR THEIR
INACTION.
>> SO, HOW WOULD THAT WORK?
>> FIRST OF ALL, IT'S IMPORTANT
TO KNOW THAT THERE ARE 9000
PERMITS THAT HAVE BEEN ISSUED
THAT THE COMPANIES ARE NOT
USING.
AND THAT'S WHAT HE'S REALLY
TALKING ABOUT.
OVER 12 MILLION ACRES OF LEASES
THAT HAVE BEEN ISSUED THAT ARE
NOT BEING USED.
AND A LOT OF THAT IS DUE, AS
YOU SAY, TO THAT FISCAL
DISCIPLINE THAT WALL STREET HAS
ASKED OIL AND GAS COMPANIES TO
EXERCISE.
WHICH MEANS THAT THEY BASICALLY
DON'T HAVE TO INVEST IN CAPITAL
TO TURN ON RIGS.
BUT THEY CAN BENEFIT FROM THE
VERY HIGH PRICES OF GAS RIGHT
NOW.
SO THE PRESIDENT IS SAYING,
DON'T JUST SIT ON THAT STUFF.
USE IT TO PRODUCE MORE SUPPLY
SO THAT WE CAN GET TO THAT
POINT WHERE WE'VE REPLACE THAT
MILLION BARRELS A DAY FROM THE
STRATEGIC PETROLEUM RESERVE
WITH THE OIL THAT THEY SHOULD
BE PRODUCING SO THAT THEY CAN
MEET DEMAND.
>> SO, IF I WERE THE PRESIDENT
OF THE UNITED STATES, I'LL BE
DOING SOMETHING SIMILAR.
AND WASN'T YOUR POSITION, I'LL
BE DOING SOMETHING SIMILAR.
BUT THE FACT OF THE MATTER IS,
WHERE DEPENDENT ON OIL IN THIS
COUNTRY.
THAT'S WHAT PEOPLE GET AROUND,
THEIR CARS.
HUGE INCREASES OF THAT PRICE
REALLY HURT PEOPLE IN THEIR
ECONOMIC LIFE.
AT THE SAME TIME, IT JUST SEEMS
SO DEPRESSINGLY INSANE THAT WE
ARE HERE IN 2022 AND IT'S LIKE,
LET'S DRILL, LET'S GET MORE ALL
ON THOSE MARKETS, THIS IS THE
SOLUTION.
AND IT'S, LIKE IT'S ALWAYS THE
NEXT CIGARETTE THAT WE ARE
GOING TO GIVE UP, BUT FOR NOW
WE NEED TO BUY ANOTHER CARTON.
WHY SHOULD I NOT BE DEPRESSED
BY THIS?
>> NO, I TOTALLY GET IT, CHRIS,
BELIEVE ME.
I THINK A LOT OF THIS CAME IN
HOPING THAT WE WILL FOCUS
SOLELY ON CLEAN ENERGY
SOLUTIONS, RENEWABLE, MAKING
THAT TRANSITION, BUT WE DIDN'T
ANTICIPATE THAT VLADIMIR PUTIN
WOULD WAGE WAR ON UKRAINE AND
CAUSE THESE MARKETS TO GO OUT
OF CONTROL.
AND SO, THAT'S WHY THE
PRESIDENT SAID THIS IS A
TWO-STEP SOLUTION.
ONE IS, LET'S INCREASE SUPPLIES
RIGHT NOW BECAUSE WE'RE ON A
WARTIME FOOTING.
WE WANT TO REDUCE PEOPLES PAIN
AT THE PUMP.
AND SAFEGUARD THEM AGAINST THIS
INCREDIBLE VOLATILITY.
BUT SECOND, WE HAVE GOT TO USE
THIS REASON TO BECOME ENERGY
INDEPENDENT WITH CLEAN ENERGY.
WE DON'T WANT TO BE RELYING
UPON FOSSIL FUEL MARKETS THAT
ARE INCREDIBLY VOLATILE.
OR FROM COUNTRIES THAT DON'T
HAVE OUR INTERESTS AT HEART.
SO ULTIMATELY, THE BEST
SOLUTION IS TO GO QUEEN.
AND THAT'S WHY THE SECOND PART
OF WHAT HE ANNOUNCED WAS
EVOKING THE DEFENSE PRODUCTION
ACT TO HELP INCREASE THE
BUILDING OF BATTERIES FOR
ELECTRIC VEHICLES IN THE UNITED
STATES.
HE ALSO REFERRED TO THE
WEATHERIZATION PROGRAM, WHERE
WE RELEASE 3.2 BILLION DOLLARS
TO THE STATE TO MAKE SURE THAT
PEOPLE DON'T USE AS MUCH ENERGY
AS THEY ARE RIGHT NOW, BECAUSE
THEIR HOMES MAY BE LEAKY.
WE WANT TO INVEST IN RENEWABLES,
WE WANT TO INVEST IN THE
TECHNOLOGIES THAT DECARBONIZE
THE FOSSIL FUEL INDUSTRY.
AND THAT'S WHY THE SECOND PART
TO BECOME ENERGY INDEPENDENT
WITH CLEAN ENERGY, IS THE
MEDIUM TO LONG TERM STRATEGY.
>> WHAT'S THE BENCHMARK FOR
SUCCESS HERE?
AGAIN, TO GO BACK TO THE ESPY
ARE, STRATEGIC PETROLEUM
RESERVE.
THERE'S ALWAYS THIS WORRY ABOUT
FIRING THAT BULLET, IT'S NOT
WORKING.
SO WHAT'S YOUR BEST MARK FOR
THE NEXT SIX MONTHS?
>> WELL, WE WANT TO DO IS SEE
THE PRICE OF GAS AT THE PUMP
REALLY STABILIZE.
WE KNOW THIS VOLATILITY BECAUSE
WE DON'T KNOW HOW MUCH MORE OIL
WILL BE ABLE TO PUT ON THE
MARKET, NOT JUST US IN THE
UNITED STATES, BUT GLOBALLY WE
DON'T KNOW WHAT OTHER COUNTRIES
WHO ARE PRODUCERS WILL DO, LIKE
OPEC.
WHICH HAD A MEETING TODAY, AND
DID NOT INCREASE SIGNIFICANTLY
THEIR SUPPLY.
BUT, THE BENCHMARK IS REALLY A
STABLE OIL MARKET, BUT REALLY,
A MOVE TO CLEAN ENERGY.
THIS IS WHY THE UPTICK IN
DEMAND FOR ELECTRIC VEHICLES IS
A GOOD SIGN.
I KNOW ELECTRIC VEHICLES CAN BE
EXPENSIVE AT THE DEALER, BUT
IT'S ONE OF THE REASONS THE
PRESIDENT WANTS TO SEE THOSE
TAX CREDITS TO BRING DOWN THE
PRICE AT THE DEALER, SO THAT
PEOPLE CAN BUY ELECTRIC
VEHICLES AND DON'T HAVE TO EVER
WORRY ABOUT GOING TO FLIP UP AT
THE GAS PUMP.
AND CAN I JUST SAY, ONE OF THE
THINGS I THINK IS A REALLY
GREAT EXAMPLE OF THIS IS THAT
IF YOU FILLED UP YOUR 15 GALLON
TANK TODAY, WE PAYING ABOUT 62
BUCKS TO GO 300 MILES.
IF YOU PLUGGED IN AN ELECTRIC
VEHICLE IN YOUR GARAGE WITH
YOUR THREE PRONGED PLUG, YOU'D
BE PAYING ABOUT TEN BUCKS.
SO, TEN BUCKS, VERSUS 62 BUCKS.
THAT'S 50 BUCKS YOU'RE SAVING
EVERY TIME YOU PHILIP!
THAT'S A HUGE SAVINGS FOR REAL
PEOPLE!
SO THE QUESTION IS, HOW DO YOU
BRING BACK THE COSTS OF THOSE
CVS, THERE'S GONNA BE NO
QUESTION THAT PEOPLE WILL
PREFER ELECTRIC VEHICLES.
>> AND UNDERAPPRECIATED PART OF
ELECTRIC CARS, IT'S JUST A MUCH
MORE EFFICIENT FROM
THERMODYNAMICS, BECAUSE IT'S
NOT CREATING HEAT AS A
COMBUSTION ENGINE.
ALL THAT HE GOES OFF EVERYWHERE,
YOU HAVE TO GET RID OF IT.
ALL THAT IS WASTED ENERGY.
IS JUST A MUCH MORE EFFICIENT
MACHINERY.
SO, THAT'S PART OF THAT.
>> SO MANY IF YOU ARE MOVING
PARTS.
>> EXACTLY.
E I JUST WANTED TO SAY, THE
WEATHERIZATION ASSISTANCE
PROGRAM, IT'S THE NERDY THING
IN THE WORLD, BUT IT'S A HUGE
DEMAND FOR IT.
YOU SHOULD GOOGLE IT.
IT'S A REALLY GREAT PROGRAM.
THERE IS A WRAP SONG BY CARDI B