Free Transcripts. Bannon’s War Room. Walsh: RINOs In Congress Voted To Sell Off Strategic Gas Reserves In American Northeast.

Topic: Energy. Guest Dave Walsh. July 3, 2024.

Transcripts from Bannon’s War Room on Rumble: Walsh RINOs In Congress Voted To Sell Off Strategic gas Reserves In American Northeast

July 3, 2024.

Dave Brat

The war room energy expert. And So, Dave, if you want to bring us up to speed on the latest in energy policy, what the Biden administration has wrought, what the Trump solution could be, and then tie that into some of the hot spots that you see around the world. How is energy tied into our geopolitical strategy and why are we paying such a price now and how can we get out of it? Dave Walsh take it away.

Dave Walsh

Dave, thanks for having me. You know, this week we had the announcement by the administration, their latest move to, put a shiny object out to attempt to win an election by appearing to do something for the American people and the price of gasoline at the pump announced the basically, the abandonment of the Strategic gas reserve in the northeast, 10 million barrels, or 42,000,000 gallons of gas he’s going to release. So, programmatically, they're saying release, it means sell. These are sold off.

We'll have no longer a gas reserve which was meant for a repeat of something like Sandy that occurred a couple of years ago or a military event that we need to support. We'll no longer have a gas reserve in the northeast for gasoline. And what that amounts to 42,000,000 gallons. We consume as a country 376,000,000 gallons a day.  42,000,000 gallons is 11% of 1 day’s consumption of gas in this country. So, we'll have an absolutely nominal to nil effect on pricing, even though they're broadcasting the shiny object that it will.

But I will remind everybody, and this is where we got to keep our guys honest in the in the RINO camp. We had back on March 22nd, 101 RINO congressman vote for the. This inside the bill to keep the government open and the budget and a majority of our Republican senators voted for to keep the government open, bill that included this as a line item selling off the gas reserve in the Northeast, just saying. So, the Republican hands are dirty with this also.  We have got to educate our RINO candidates and our RINO representatives on how energy works and how it's being used against the American people. We still got to work on that.

Globally, some shocking news through Reuters in the last few days, Russian pipeline gas coming into Western Europe has advanced by about 23% in June over June of last year. In May, it was up about 31% from May of last year. So Russian pipeline gas is finding its way back into Western Europe.  The entire time of this conflict, LNG has risen from Russia to Western Europe. LNG was a loophole in the boycott of Western Europe against Russia, wasn't included, was 13% of the LNG a year ago, was now 17 nearly 18% of the LNG being bootlegged into Western Europe is coming from Russia, to our supposed allies in this Ukraine activity, again proving that they're not really allies and Western Europe not really doing much in in the way of support to the $180 billion we've thrown into that conflict and also.

Dave Brat

Go over that one again.  Hey, Dave. Go over that one again. Just the conclusion, the bottom line.  So Europe to Russia energy implication for the United States go over that, just what at the crass level, what's the bottom line there? Where do we stand?

Dave Walsh

Well, we know we export 47% of the LNG coming into Europe comes from here, put some pressure on our gas prices, although they've been low. Natural gas prices generally last year have been low but also oil, crude and refined product ranges from 1,000,008 per day to 2.5 million barrels are exported from the US into Western Europe to augment the loss of crude oil from Russia into Western Europe, which does have an effect on boosting prices here. And that's what folks are seeing at the pump. You know, we're up to generally averaging about 3.75-3.80 across the country in in gas at the pump.

And this is we've had about 17% uptick in the Brent crude and West TX intermediate pricing in the last in the past year due to largely heavier exports occurring into Western Europe for us to support their lack of oil coming from Russia. But I'm saying at the same time LNG and natural gas continue to come into Western Europe from Russia in significant quantities. So, it’s kind of contradicting the complaints of the Europeans that they're helping us through being restricted on energy supply.  They continue to export import rather large quantities of LNG, about 18% of what they import comes from Russia. And a very large portion of their pipeline gas in the last two months is coming again from Russia. So, they're not great supporters of this war effort, the Western European so-called allies.

We've got about 100 billion now per year that we're exporting into Western Europe. Coal is 2½,  billion, natural gas, about 40 billion per and oil ballpark 50 billion in monetary value of exports into Western Europe, with this Ukraine activity restricting supply there and their own decisions in Western Europe, in the Groningen Gas Field and Holland in the North Sea by the UK and Scotland, the UK in terms of banning fracking and the Germans in terms of Lower Saxony where have plenty of natural gas exists to not harvest their own resources continuing and lots of exports from the US, buttressing their own lack of ability, willingness to harvest their own regional natural gas and oil resources. So still…

Dave Brat

Hey Dave, you can finish up on Europe, but I'm also interested in Colonel Mills. Everything's coming from China. That was a thesis statement no matter where you are, the Middle East, Europe, Latin America. Fentanyl. China, the second island chain. Everything.  Where do we stand? You've been great on that over the years. The horn around India, the sea routes, China is highly got some severe problems there in terms of their own internal energy needs. What is that looking like now? Does that impact their planning on Taiwan? Are they still vulnerable around those sea lanes in terms of getting the energy they need, or can they be cut off if they play hardball?

Dave Walsh

No. In the longer run they've, but this is probably a couple of years out, these construction projects been concluded. They've agreed with a pipeline from Siberia coming into China as part of their new alliance with China in the last two years that Biden has forced together, very unfortunately.  The Belt and Road initiative with Iran and Iraq have generated plans for pipelines, which again pipeline natural gas is far cheaper than LNG. We were a major exporter of LNG to China, but it's very expensive. 

The liquefaction and de liquefaction transport of it puts a massive premium on gas. But when it's pipeline based, it's far, far cheaper. So, they've kind of got that resolved between Iran, Iraq and Russia ready and moving forward direct pipelines into China, but that's going to be 3-4 years away. In the meantime, they have bought out virtually all of the boycotted supply of oil into Western Europe, which was about 3 million barrels a day. China consumes 2/3 of that, India about 1/3 of it. So, China's resolved in oil supply for the time being. So no, I don't see restrictions on energy right now being an impediment to aggressive actions they may take in the Philippines and in Taiwan.  They’ve done a very good job.  They've done what we never did.

They challenged OPEC by going ahead with Iran and Iraq on deals to buy oil from them for 20 years at Brent crude, -40%.  So, they're presently enjoying about $52 per barrel oil from Iraq and Iran, when the rest of the world is spending 86-87 bucks a barrel on Brent crude or 82 bucks a barrel on our Permian West TX intermediate crude. So they're on a cost basis, they're massively resolved on the energy cost issues and of course they've got 400 coal plants under permit and under construction being built in China as we speak, while they make solar panels and lithium-ion batteries for us. So, you know their energy picture is doing very the much the opposite of what they're selling us in equipment.

Dave Brat

Yeah. Give us a give us a 32nd tour de force on you and Steve have been great done US energy, full spectrum dominance. But then give us a couple of points, what would you advise President Trump when it comes to this geopolitics in terms of getting Europe to behave themselves? Any partnerships we still have at the end of this current administration, how would you advise him to pull together the world in addition to the US getting our own House in order? Dave.

Dave Walsh

Well, we can, you know, a lot of this political activity in Germany, Austria, England and France with Macron do relate heavily to energy costs in Europe and the people standing up against exorbitant energy costs that they've now experienced and the nakedness that's been exposed by Russia invading the Ukraine. Over here to support this and the move to be reactive to people and what people need to live and to have industry and commerce and jobs, incentivization of solar wind battery storage needs to end. Incentivization of nuclear power needs to end.

We don't need to incentivize any particularly inefficient resources, such as time constrained wind and solar to buttress our economy. We need full stop all in competitive on an economic basis, negative incentives again because incentives ruin fastidious behavior on the people being efficient.  When people don't see the real cost of energy, such as being hidden by 30-40% incentives on wind and solar, they're not inclined to be efficient.

This was one of the hallmarks of creating the DOE back in the Carter area, that people ought to be conserving ought to be efficiently you can't be if you're hiding massive cost of solar, wind and battery storage under incentives to make that cost a mask over, but also importing virtually all of that equipment, particularly solar and battery storage from China who are supporting Russia in this cause in Ukraine and supporting what's going on with Hamas and Hezbollah very clearly and you know with the bellicose threats continuing on Taiwan and their intent to move on Taiwan.  Not if, but when. So, we we've got to. We've got to take strides for energy independence here. We've got to.

Dave Brat

Dave Walsh, thank you very much. Fit in perfectly brilliant presentation following Colonel John Mills. Seamless. How do people reach you and what should they be reading on energy policy, Dave?

Dave Walsh

Thank you for what you're doing. Can't believe we're in this situation watching our second senior presidential advisor imprisoned by these guys now, with this penchant to take political prisoners. We're all blessed that you're doing this. We're thankful.  You can catch me now on the next and of course GETTR and true social all at Dave Walsh Energy. Thank you, Dave

Dave Brat

Good. Thanks for the kind words, Dave. God bless you, alright?