Back in March, when reading the mammoth, 1050-page bill that was meant to avert government shutdown, but was yet another pork filled free-for-all bonanza authorizing $1.7 trillion in in discretionary spending, we stumbled upon something that was truly shocking: after Biden singlehandedly drained half of the US strategic petroleum reserve to avoid obliteration for Democrats in the 2022 midterm elections, Congress has snuck in a provision that would sell off and shutter the Northeast Gasoline Supply Reserve, a move that while perhaps keeps gas prices lower for a day or two, would also leave the entire continental northeast defenseless to any true environmental catastrophe or shock. We were so dismayed by the inclusion of this particular text, we wondered if it hadn’t been put there solely for the benefit of America’s enemies…
The entire US 1 million barrel Northeast Gasoline Supply Reserve will be required to be sold and closed in fiscal 2024, according to bill text of government funding legislation unveiled Sunday
Did China write this bill? https://t.co/d8qLXZ5Gi6 pic.twitter.com/8B2flG0CZw
— zerohedge (@zerohedge) March 3, 2024
… because surely nobody in their right mind, not even the illegitimate senile occupant of the White House, would ever pursue such short-term gains at the expense of potentially disastrous long-term consequences to the entire nation.
We were wrong: earlier today, just two months after the bill was signed by Biden into law, the panicking administration announced that it would sell the nearly 1 million barrels of gasoline in the US managed stockpile in northeastern states, the Department of Energy said, effectively closing the reserve.
The department created the Northeast Gasoline Supply Reserve (NGSR) in 2014 after Superstorm Sandy left motorists scrambling for fuel. But, according to some megabrains hoping to justify the dumping of gas so its price drops for a few weeks ahead of the summer and avoid even more anger aimed at the president, storing refined fuel is costlier than storing crude oil, so closing the reserve was included in U.S funding legislation signed by President Joe Biden in March.
Bids to buy the gasoline located at the two NGSR storage sites in Port Reading, NJ (900,000 bbl) and South Portland, ME (98,824 bbl), are due on May 28 and the Treasury Department’s general funds gets proceeds from the sale. Incidentally, the proceeds from the reserve liquidation – which will amount to roughly $125 million gross (and far less net) – is roughly how much the government spends every 15 minutes!
So is it better to have a gasoline reserve for unexpected events, or to fund a quarter hour of US government’s spending? Don’t answer that. Of course, the answer is neither – the whole point of selling the gasoline is to depress prices at the pump if only for a few days to help Americans forget about the great inflationary nightmare they have been in for the past 3 years.
The volumes will be allocated in quantities of 100,000 barrels with each barrel containing 42 gallons, the department said and said it would require that fuel is transferred or delivered no later than June 30. That will ensure the gasoline can flow into local retailers ahead of the Fourth of July holiday and that it will be sold at competitive prices. Translation: Biden just drained the Northeast strategic gasoline reserve to push gas lower by a few cents on July 4.
For context, gas prices at the pump this Memorial Day will be the second most expensive in a decade – dramatically above the ten-year average of $2.91…
“By strategically releasing this reserve in between Memorial Day and July 4th, we are ensuring sufficient supply flows to the … northeast at a time hardworking Americans need it the most,” Energy Secretary Jennifer Granholm said in a release.
“The Biden-Harris administration is laser-focused on lowering prices at the pump for American families, especially as drivers hit the road for summer driving season,″ Energy Secretary Jennifer Granholm said in the statement. “By strategically releasing this reserve in between Memorial Day and July 4th, we are ensuring sufficient supply flows to the tri-state (area) and Northeast at a time hardworking Americans need it the most.”
White House Press Secretary Karine Jean-Pierre said release of gas from the Northeast reserve builds on actions by President Joe Biden, a Democrat, “to lower gas and energy costs — including historic releases from the Strategic Petroleum Reserve and the largest-ever investment in clean energy.″
Biden significantly drained the Strategic Petroleum Reserve in 2022 following Russia’s invasion of Ukraine, dropping the stockpile to its lowest level since the 1980s after selling about 280 million barrels to keep prices low. The election year move helped stabilize gasoline prices that had been rising in the wake of the war in Europe but drew complaints from Republicans, and frankly anyone with half a brain, that the Democratic president was playing politics with a reserve meant for national emergencies.
The Biden administration has since very theatrically begun refilling the oil reserve, which had more than 364 million barrels of crude oil as of last month, by purchasing a couple million barrels every other month or so, setting it on pace for refilling some time in the 2100s.
“While congressional Republicans fight to preserve tax breaks for Big Oil at the expense of hardworking families, President Biden is advancing a more secure, affordable, and clean energy future to lower utility bills while record American energy production helps meet our immediate needs,” Jean-Pierre said.
As for the real reason behind the latest myopic decision by the Biden admin, today we learned that Trump’s lead over Biden has widened to 13pp in the betting market, the largest difference since mid-March. Meanwhile, political event prediction website PredictIt places higher betting odds on Trump than Biden for the first time since March.
Trump is also leading in the latest polls of all swing states.
Trump is leading by 2% in the latest polls in Pennsylvania. If Biden loses Pennsylvania but wins Wisconsin and Michigan, he then at least needs to win one state from Georgia and North Carolina in addition to one state from Arizona and Nevada to secure a second term.
Meanwhile, closing arguments in Trump’s “hush money” case in New York are set to being on May 28. If the jury finds Trump guilty, it is possible for the former president to receive prison time, and judging by how weaponized the “legal system” of the current fascist regime has become, we would not be surprised if Biden goes there.
Tyler Durden
Tue, 05/21/2024 – 14:45
