"KUDLOW" IS NEXT.
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LARRY: HELLO, EVERYONE, WELCOME
TO "KUDLOW," I’M LARRY KUDLOW.
SO WHY ARE GASOLINE PRICES
HITTING NEW RECORD HIGHS ON A
DAILY BASIS?
WHY ARE DIESEL PRICES DOING THE
SAME THING?
GAS AT THE PUMP TODAY HIT $4.91.
THAT IS MORE THAN DOUBLE THE
$2.40 ON PRESIDENT JOE BIDEN’S
INAUGURATION DAY A YEAR AGO,
JUNE OF 2021, GASOLINE WAS 3.05
AND DIESEL WAS $3.20.
YOU GET THE PICTURE.
MOTORISTS, TRUCKERS ARE GETTING
KILLED.
SO ARE MIDDLE, LOWER INCOME
CONSUMERS WHO GET HARDEST BY
INFLATION TAX.
BY SOME ESTIMATES TYPICAL FAMILY
IS GOING TO PAY $3500 MORE FOR
ENERGY COSTS IN THE NEXT YEAR.
OTHER ESTIMATES GO ABOVE $5,000.
75% OF THE GOODS AND PRODUCTS
DISTRIBUTED IN THE U.S. ARE
SHIPPED BY TRUCK.
SO THOSE RECORD DIESEL PRICES GO
RIGHT INTO THE COST OF
EVERYTHING INCLUDING AND
ESPECIALLY FOOD.
NOW IF YOU THINK THERE IS NO END
TO THIS YOU MAY BE RIGHT.
ACCORDING TO THE ENERGY
INFORMATION ADMINISTRATION
RIGHT, EIA, ENERGY DEPARTMENT,
GASOLINE INVENTORIES ARE GOING
DOWN WHILE DEMAND IS GOING UP.
TOTAL DOMESTIC STOCKS FELL BY
700,000 BARRELS LAST WEEK WHILE
GAS DEMAND PICKED UP BY OVER A
MILLION.
SO THAT SUPPLY DEMAND IMBALANCE
IS VERY BULLISH FOR GAS PRICES
BUT FRANKLY BEARISH FOR JUST
ABOUT EVERYTHING ELSE.
NOW I HAVEN’T MENTIONED NATURAL
GAS WHICH IS PROBABLY THE MOST
IMPORTANT ENERGY SOURCE OF ALL
AND THE CLEANEST OUTSIDE OF
NUCLEAR.
THE LATEST QUOTE FOR NAT-GAS IS
$9.34 PER MILLION BTUs.
THAT IS ABOUT DOUBLE FROM A YEAR
AGO.
NAT-GAS COOLS AND HEATS HOMES
AND OFFICES AND FACTORIES AND
POWER GRIDS, YOU NAME IT.
IT IS A DOUBLE IN PRICE.
THE WORLD PRICE OF OIL IS
RUNNING ABOUT $120 A BARREL
RIGHT NOW.
THAT IS UP 50 BUCKS FOR THE
YEAR.
UP 70 BUCKS SINCE JOE BIDEN TOOK
OFFICE.
NOW I KEEP HEARING ABOUT
SOMETHING CALLED PEAK INFLATION.
COLOR ME VERY SKEPTICAL ABOUT
THAT.
WIDELY FOLLOWED COMMODITY
CHARTS, BLOOMBERG COMMODITIES
AND GOLDMAN SACHS COMMODITIES,
HAVE JUST HIT NEW PEAKS FROM
ENERGY AND FOOD.
SO I WOULDN’T BE SO SURE ABOUT
INFLATION PEAKING.
IF AND WHEN IT DOES, IT IS GOING
TO BE VERY STICKY ON THE WAY
DOWN.
BUT EVEN WITH THE HIKE IN OIL
PRICES AND NAT-GAS PRICES, BAKER
HUGHES RIG COUNT FLATTENED OUT.
DESPITE RECORD HIGH PRICING Y IS
THAT?
IF YOU TALK TO OIL EXECS THEY
WILL TELL YOU BECAUSE THEY’RE
VERY UNCERTAIN ABOUT THE FUTURE,
RIGHT?
GIVEN ALL THE ANTI-FOSSIL
POLICIES COMING OUT OF TEAM
BIDEN, EVEN IF YOU GET A LEASE
SOMEPLACE YOU PROBABLY WON’T GET
A PERMIT.
THE EPA ENERGY DEPARTMENT AND
INTERIOR DEPARTMENT HAVE ALL
RADICALLY TIGHTENED THEIR
ENVIRONMENTAL TESTS, FOR OIL,
FOR GAS, FOR REFINING, LNG
PIPELINES, EVERYTHING.
NOT ONLY HAVE THEY RADICALLY
TIGHTENED THEIR ENVIRONMENTAL
RESTRICTIONS THEY HAVE ALSO
DESTROYED THE PERMITTING
REDUCTIONS FOR NEW PROJECTS THAT
WERE PUT IN PLACE BY PRESIDENT
TRUMP A COUPLE YEARS AGO.
NEPA RULES HAVE BEEN TOSSED OUT
THE WINDOW.
ONE FEDERAL DECISION OUT THE
WINDOW.
BAD ENOUGH THE WOKE BIDENS
RELIED ON NUTTY IDEAS LIKE THE
SOCIAL COST OF CARBON BUT THEY
HAVE ADDED STATES AND COUNTIES
AND NATIVE TRIBES INTO THE
DECISION-MAKING PROCESS.
BY THE WAY WE SHOULD PROBABLY
ADD TRIAL LAWYERS AS WELL
BECAUSE THEY’RE GOING TO HAVE TO
FIELD DAY WITH THIS SO BASICALLY
NOTHING IS GOING TO GET DONE.
SO THAT’S ONE BIG REASON THE RIG
COUNT HASN’T RESPONDED TO RECORD
HIGH ENERGY PRICES.
CALL IT THE REGULATORY TAX OR
THE UNCERTAINTY TAX.
WHY SHOULD THEY INVEST IN THE
FUTURE WHEN THERE MAY NOT BE A
FOSSIL FUEL FUTURE?
ANOTHER REASON, INCIDENTALLY, IS
ALL THIS ESG INVESTING STUFF
WHERE FOSSIL COMPANIES HAVE HAD
DIFFICULTY IN SECURING FINANCE
FOR THEIR PROJECTS.
ESG IS THE HOLY GRAIL OF THE
ENTIRE BIDEN ADMINISTRATION.
IT IS RIGHT UP THERE WITH
ANOTHER FALSEHOOD CALLED
EXISTENTIAL IMMEDIATE CLIMATE
RISK.
THIS IS ABOUT LEFT-WING
PROGRESSIVE IDEOLOGY, NOT FACTS.
THERE YOU HAVE IT.
THE BIDEN WAR AGAINST FOSSIL
FUELS, NO WONDER DEMAND
CONTINUES TO EXCEED SUPPLY AND
PRICES CONTINUE TO GO UP EVEN
NOW.
OIL PRODUCTION THROUGH THE END
OF MAY IS STILL, GET THIS,
1.2 MILLION BARRELS PER DAY LESS
THAN THE 13.1 MILLION REACHED
PRE-PANDEMIC.
CAN YOU BELIEVE IT?
SO WITH ALL OF THIS GNASHING OF
TEETH ABOUT HIGH INFLATION AND
BIDEN FEELING YOUR PAIN ABOUT
COSTS AT THE PUMP FOR ORDINARY
FAMILIES, ALL THE EXCUSES AND
ALL THE APOLOGY TOUR, WE, U.S.,
IS STILL SIGNIFICANTLY
UNDERSUPPLIED OIL EVEN AT THIS
LATE DATE.
UNDERSUPPLIED OIL MEANS HIGH
PRICES AT THE PUMP AND
EVERYWHERE ELSE.
THIS HERE IS A HOMEGROWN
PROBLEM.
SELF-INFLICTED.
AND THE ROOT CAUSE OF THIS
ENERGY PROBLEM IS NOT VLADMIR
PUTIN.
FACTUALLY I WILL CONCEDE SINCE
FEBRUARY OR SO PUTIN’S WAR HAS
CONTRIBUTED BUT FROM DAY ONE OF
THE BIDEN ADMINISTRATION, INDEED
EVEN DAY ONE AFTER THE BIDEN
ELECTION ENERGY PRICES HAVE BEEN
RISING BECAUSE OF BAD
ANTI-FOSSIL WOKE POLICIES AND A
COMMAND CONTROL CENTRAL PLANNING
APPROACH TO IMPLEMENTING THESE
POOR POLICIES.
BUT YOU KNOW WHAT, FOLKS?
I’M NOT SO PESSIMISTIC BECAUSE
THE CALVARY IS COMING.