So president biden just sent out a letter to the oil companies saying that they have well above normal profit margins, and that is unacceptable. Now, if you actually read the letter, it should blow your mind. So, let's go through the actual letter itself and let's do it together. So president joe biden on wednesday called on u.s refining companies to produce more saying, they need to help alleviate the burden of high prices on consumers.

Okay, let's keep reading and i'll. Tell you what i think about it. A time of war historically high refinery profit margins being passed directly onto american families are not acceptable. The president said in the letter to all companies, including exomobile and chevron, companies must take immediate action to increase the supply of gasoline diesel and other refined product.

The letter added biden's call comes as sky-high. Energy costs add to inflationary concerns across the economy, the national average for a gallon of gas across five dollars over the weekend. For the first time, according to aaa, the national average is now at 5014, which is 54 cents more than a month ago and 194. More than last year, biden said that the administration is prepared to use all reasonable, inappropriate, federal government tools and emergency authorities to increase refinery capacity and output in the near term.

Refining capacity has dropped since the pandemic too cold, which is a factor in the rapid advance of fuel prices. Demand has returned to it, returned as economic restart and people travel again, but supply remains tight. Loss of russian refined products has excess, exacerbated exacerbated exact. I can't say this: i'm too russian for this award come on.

Give me a break. Let's just read it like the way i can. Loss of russian refined products has made worse the imbalance with europe now looking elsewhere for fuel refiners can't just ramp up output and utilization rates are well above 90. Additionally, some of refineries are now being reconfigured to make alternate products like biofuel biden's noted in his letter that the refining shortages is a global challenge and a global concern, with around 3 million barrels per day of global capacity offline since the restart of the pandemic.

Since they started pandemic that, i don't think that's number is accurate. Okay hold on there's so much to talk about here. Still he pointed to the unprecedented disconnect between the prices of oil and the price of gas. Since the beginning of the year, refiners margins for refining, gasoline and diesel have tripled and are currently at their highest levels, he said he also sent it out to bp shale marathon and a bunch of other old producers.

The crunch that families are facing deserves immediate action. Your companies need to work with minorities to bring forward concrete, near-term solutions that address the crisis. Biden said now my thoughts about what we just heard number one. This could have came from stalin, lenin, karl marx name, a communist.

This is the most commonest i've ever heard in my life, so the government is now saying that the evil industrialists are making money of the poor americans and they need to be punished by reducing their margin. Ain't that a kick in the nuts. This is like super ultra common. As that i never expected the u.s president to see talk about.

You know free markets for economy now. The problem is that, beyond the fact that this is super, ultra commonist there's also a lot of inaccuracies here. So let me explain what happened with the oil companies. So if you remember uh, just a couple of days ago, we had the ceo of chevron actually come out and say: hey.

I don't think we will ever build a new refinery in the us. So the reason he said that is because the us governments generationally over the past couple of decades have been kicking the oil companies in the nuts. It ain't nothing new. It was made worse more recently, especially with this administration going ham on esg and absolutely you know trying to destroy oil companies.

Let me just remind you that even yesterday, the secretary general of the un came out and said that all companies are evil and we should not support them and we should just go all in 100 of renewables and investing in oil capacity is pure delusional. That's how we put it so these companies have been beaten, down, abused and absolutely annihilated throughout the past couple of years intentionally by the government, because they went on this esg scam, trying to push out something that wasn't yet ready and i'm all for renewable energy. I'm all, for you know, sustainable energy problem. I i'm a huge tesla bull, but they tried to push it out too early and in the process they've completely demolished the oil companies, their profit margins, went to.

They were not making any money for years, then the pandemic came and absolutely destroyed. Whatever was left of them all went negative. Remember that some post-apocalyptic nonsense now, for the first time i think, in a lot of years, these companies are actually making money. Now, beyond the fact that it's super communist to come in and say hey, this is something that the government should set the price of of oil and you guys are making too much money.

That's not very capitalist, but let's put it to the side for a second. The problem is that the prices of oil are global. Prices of crude are global, it's not about u.s production. So what you did here is essentially, as the government, you discourage investment capital investments in the oil industry, to create this capacity by the way, i'm not sure how much capacity they have immediately to give i'm not sure if they, if they even have any right now To give more capacity because of this lack of investment now, if these companies that have been beaten down for years are looking at the situation, saying hey, if i invest now hundreds of millions into developing capacity and by the time i'm actually going to be making money, This is going to be 2027 2028.

By that time, this crisis is going to be over. This government is not going to need me anymore and they're absolutely going to go at me again, destroying my business. I'm not going to invest now hundreds of millions into into making more capacity. I mean it's just too dangerous, it's too risky.

It's too unstable. I don't trust this government instead, i'm just gon na milk, whatever i can out of this, because we need the money because i mean we're getting destroyed regulatory wise and we just need to milk it out as fast as we can now. It's actually infuriating to me where the way he puts it in the letter is shifting blame in such a horrendous way. So he's saying that the crunch families are facing it's their fault, it's excellent, mobile and chevron.

Now, i'm not an exxon, mobile or chevron fan i've. Never invested in the oil companies ever before. I i couldn't give less about them, but here's the truth. So this government decides to go in on esg, destroy capacity and in the process sanction russia on oil, which the only thing it did, and i agree that russia should have been punished and putin should have been punished 100 percent.

What they did was horrible. What he's still doing is horrible, he needs to be you know, put in his place, but i mean when you said: hey we're not going to buy your oil. The entire western world is not going to buy your oil, then what you did is you basically allow the situation when russia is still selling the same amount of oil to india, to china, to brazil? There's still plenty of shoppers for russian oil. It's just.

We can't have it so you eliminated. I think the number that they said here with 3 million barrels. That's what they're missing! I think that's erroneous. I think the real number is about 10 or 11 million barrels.

That's the real shortage, because this is what russia used to make and now they don't make it anymore. At least it goes elsewhere to china to india. So it's you eliminated rush out of the game for us as a place to buy oil. That added to the situation of being oil being so expensive globally and the main thing about it is that, on top of it all and again the audacity is like you have destroyed the relationship of the us with the only country that could solve the demand problem Or rather the supply problem, which is saudi arabia, so saudi arabia is the country that controls pretty much opec.

That decides where opec is going, opec being the cartel responsible for the production of global oil supply. For years, the previous administration had the terrific relationship with the saudis, because it was a good business. You know ever since this administration took office. Basically and again, it's not a political view.

It's just a pragmatic view. They basically said: hey, we don't care about you, we're not going to help you we're not going to support you. In fact, biden is on record saying that he wants to make saudi arabia pariah for the alleged assassination of a journalist in turkey. So i understand morals and i understand doing the right thing, but as a president, you got to look at strategic pieces, so you go and you absolutely beat up the local oil companies.

You go and you close down the shop where you're supposed to buy and other people can still buy in it, which is china and india, and you go and absolutely beat up the other dealer at the end of town, which also can give you more of whatever It is you're trying to buy so you've done all this, and now you look at all the people who can't buy oil and say hey yeah, it's the fault of the local suppliers, which you also kind of destroy. I think it's hypocritical. I think it is inaccurate. I think it's commonest borderline marxist - and i think it's just factually as as erroneous as saying that gm and maribara led the eevee revolution, which is also something this administration said before now again, i think that anybody with a little bit of a common sense can read This letter and decide for themselves if this is or legit you know my opinion, in my opinion, that this is just inaccurate, incorrect and complete.

Now, i'm not going to be bullshitted by anybody, definitely not by politicians, and i suggest you do the same i'll see you next video. This is some kaka. Maybe nonsense!.