The Peter Zeihan Podcast Series - The Biden Admin Liquidates Northeast Gas Reserves || Peter Zeihan

Episode Date: May 29, 2024

If you're planning a coast-to-coast road trip through the US, you might want to wait until the Biden administration can liquidate the northeast gasoline reserves, here's why... Full Newsletter: https://mailchi.mp/zeihan/the-biden-admin-liquidates-northeast-gas-reserves

Hey everybody, Peters I here, come with you from a train and trance, which I thought would make a great backdrop to talk about U.S. gasoline. What's hand-in at the moment is the Biden administration is of the process of liquidating the Northeast Gasoline Reserve. Now, this is something that was built of a little over a decade ago to make sure in its seasonal demand surges, especially in the summer, don't pause market problems or, God-permitted, have shortages. Tullull. We'll be back. for back. Anyway, that was the end of the system. Now, Congress has recently passed a law basically mandated and the

limitation of the reserve because storing fuel is expensive and dangerous, certainly more expensive and dangerous to the story crude oil, and the United States now has the world's largest refining capacity. So over the course of the last 10 years, we've kind of gone through the second phase of the Shale Revolution, where it's not so much

about oil or natural gas now, was starting to process all the stuff that were producing. So the United States, states in the last 25 years has dropped in the world's largest consumer of oil, a lot of import oil, largest import refinery products, now the largest export of all of those studies. In addition to electricity, in addition to natural gas and in addition to the propane and puetate, in addition to pretty much every energy and processed energy product

on the planet. And so this reserve just isn't necessary anymore, it's an unnecessary expense. So, you know, totes parade. There's also, of course, a little bit of fluff, and you'll not remember. This is a commercially mandated thing that the Biden administration is doing, but the Biden administration to traverse as the executive has the ability to micromanage how it is done. So the reserve, which is about a million barrels of gasoline or about 40 million gallons of gasoline, anyway, so the Biden administration can decide how and when and where it is released.

Well, it's the Northeast, all the fuels in the Northeast, so that's kind of spoken for. As for the wind, the release will be between the 1st of July and Memorial Day, So right in the heart of the driving season, if the United States would demand happens to be at the highest, the United States has happened in issue with inflation right now. It's something the Biden administration is worried about for its own survival. And so taking some of the sting out of energy prices, out of time on going on, the energy prices,

it was gasoline prices for the highest, makes a lot of sense. So, and if that is what is going on, and I'm going to go out of it for something.