President Biden Broke OPEC At Their Own Game. And He Can do It Again

Last week he took all my money, and it may sound funny, but I come to get my money back   Jim Croce   You don’t mess around with Jum

If you read me regularly, you know well my undying love for a good dose of irony, and I try to provide a dose whenver possible. But this story has a particular style and dose of irony that approaches biblical proportions.

Ever since the 1970’s OPEC has been a constant, nonstop pain-in-the-ass not just for the United States, but the entire free world. Like the California water wars of the 1940’s, OPEC has gleefully spent their time opening and closing the oil production spigot. Sometimes they spanked the US for our foreign policy positions, as in the Arab-Israeli war, and the Iranian Revolution, And sometimes just because they’re sick, sadistic pr*cks.

This saga revolves around the Covid crisis. It’s a good thing that the world basically went into lockdown, because with all of the oil refineries and processing plants being shuttered, the big oil producers couldn’t even supply the leager demand that there was. Gas prices dropped like a stone, because even if producers had stock to move, there was no demand for it. For couple of weeks there, oil companies were actually losing money for every barrel of oil they sold.

But like all bad things, the Covid lockdowns came to an end. As people started venturing out, demand for gas went up again. But restarting an oil refinery isn’t like flipping the master breaker switch after the power goes out to your house. It literally takes months to get a plant back fully on line. That’s why you see gas price spikes after a hurricane hits the Texas refineries, or offshore oil rigs.

Enter grand Master Petroleum Trader Joe Biden. At the time he did it, he caught a ration of sh*t big enough to fertilize the Midwest. He opened the gates and dumped some 200 million barrels of oil from the United States Strategic Petroleum Reserves. But he didn’t just funnel it to US petroleum producers. Instead he decided to sell it on the world market, and convinced other countries like Canada, Mexico, Great Britain and France to do the same.

Biden made it clear to OPEC at the time that he would continue to dump US oil reserves into the market until the prices came down to a realistic level. At the time Biden started funneling US oil reserves into the world market, the average going price was about $97 a barrel.

But that well timed infusion got the globe over the hump. Within a couple of months, the oil refiners were back online, and ramped up production lickety-split to start making money again. And as a result, whether Saudi Arabia and OPEC liked it or not, the prices started falling like a stone.

Which is when Biden brought the hammer down on the Saudi’s and OPEC. With the global price at about $67 a barrel, The United States started buying oil in order to bring their reserves back up to snuff. And if you look at some 200 million barrels at an average $30 a barrel, by the time he was done, Biden had returned about a hefty $600 million profit to the United States Treasury.

There are so many reason s why this was such a brilliant play, but here’s the one nobody ever thinks about. Whether it’s stored in individual barrels or huge tanks, crude oil doesn’t have a shelf o lofe of forever. Sooner or later it starts to degrade, sludge forms, and it has to be disposed of. The US Strategic reserve is estimated at about 600 million barrels. In one fell swoop, Biden not only ditched our 200 million oldest barrels of crude, he turned around and replaced them, and at a $600 million profit to boot.

But here’s the McGuffin. In one master stroke, Biden just made it loud and clear to OPEC that there’s a new Sheriff in town. Biden had already ramped up crude oil excavation and refining. During the Covid crisis, with that 200 million barrel dump, the United States became the largest oil producing country in the world. And having countries like Mexico, Canada, Great Britain and France in the game, the dent in OPEC’s wallet got even deeper.

And Biden, or any other American President can always do it whenever he wants! We have the resources, we have the capacity, we have the production and distribution base, and most importantly, we have another 400 billion barrels in our Strategic Reserve that we can dump right back into the global market any time OPEC wants to f*ck around, update our reserves, and make a tidy bundle doing it.

OPEC’s stranglehold on the world market is broken, and most importantly, so is Russia’s. Remember this. One of the reasons for the severity of the oil crisis during Covid was the oil embargo restrictions that the free world had imposed on Russia for their attack on Ukraine. The free world’s oil dump made it possible to isolate Russia from making money off of their oil. And should it become necessary, they can always do it again.

This needs to be front and center in the 2024 campaign. So much for Sleepy Joe. In his first flier as a glo oil trader, Biden, obviously with the best minds available, avoids a global oil shortage, puts OPEC firmly back in its place, and walks away with a cool half-a-billion profit. And the most stable genius real estate mogul can’t even run a f*cking casino, a legal cash printing press, at a profit. So much winning.

I thank you for the privilege of your time.