Folks, you are being screwed up the Wazoo and in today's video, I'm going to show you exactly how big oil failed, government energy policies and price fixing oil cartels that were supposed to bow to at every point because oh ho ho they're so fancy I'm going to show you exactly how they are running with every dollar they can and taking as much advantage of this crisis as possible. It's quite frankly a disaster and every single time I Read a report it's always from a political standpoint of oh, are you Pro or against Green energy when quite frankly in fact, it has little to do with green energy and whether or not you're pro-it it has everything to do with correct energy policy implementation. There's a lot going on behind the scenes here, and it explains a lot of what we have seen in this inflation battle, what we are seeing in terms of consumers eroded purchasing power, and where it went, What we are seeing in terms of how much small businesses and large businesses are having to pay on their supply chain to get their goods and services transported around, and so this is an incredibly important issue that you need to pay attention to. So I Want to go ahead and start with who profited from this.

First, we have the biggest oil company in the world Saudi Arabia and basically Government oil company or Ramco. They reported 156 billion dollars of profit for Q3 of 2022, and this is up from 108.1 billion in profits in the same period a year ago. So that is a 44 increase in profits year over year next. Exxon During Q3 Exxon reported 19.7 billion dollars in profits, but in the same quarter of 2021, Exxon reported just 12.9 billion dollars in profits.

That's a profit increase of 52 percent. Keep in mind that this was for a quarter where oil prices were going down from Peaks. That means that they weren't lowering gas prices at the pump, even though their input costs had gone down dramatically. so they were able to pocket more and more money.

Hey, I'm pro-capitalism It does beg the question of how they were able to get away with this if they weren't working with other parties. In my opinion. I'm not saying anything. Seems to me if you had a true free market with this industry, you'd have other gas stations going and undercutting them.

You'd have other parties going and undercutting them. But not in this one. Not in this one. Uh-uh Chevron As of the last report for Q3 Chevron profited 11.2 billion, their second highest quarterly profit ever in the same quarter.

A year earlier, they profited just 6.1 billion. That's an 83 increase in profits 83. Shell just reported 9.45 billion in profit for the third quarter. This is compared to 4.13 billion in profits in the same period a year ago.

That's a 128 percent increase in profits. Chachinga Valero Just reported 2.82 billion in profits for the third quarter, but a year ago, they reported just 463 million. Their profits are up 509 percent Marathon Petroleum reported 4.48 billion in profits. This is up from last year's 694 million.

Their profits are up 545 percent 545 PBF Energy a lesser-known petroleum Refinery Company just reported 1.06 billion in profits. same quarter Last year, they reported only 59.1 million. If you do the math on that, that's an increase of over 1700 percent in profit. during a year where everything else in the economy slowed down.

next. BP at the latest earnings report, BP reported 8.2 billion in profits its second highest on record, its first being the quarter directly before, and it reported more than double what it had brought in in Q3 of 2021.. So where did these profits come from? Well, you already know they came from you. Whether that's directly through oil and gas and other energy that you need, or whether that's indirectly through businesses and services that you transact with that also need oil and gas.

And keep in mind that it's not just these companies that benefited, but entire countries, entire institutions in massive oil producing countries like Iran Iraq Saudi Arabia Libya and Venezuela who were able to offload their own oil at multiples of previous prices. The point, though, is that usually when you have profits to the tune of hundreds of percentage points, it's it's because you've created a new good or service, or innovated in some way, or at least figured out some new way to reduce costs. In this case, that is not what happened. Instead, they got a windfall because of the geopolitical crisis, the war in Ukraine and the resulting sanctions, and because of government and cartel reduced production constraints.

But the fact of the matter is that despite how much people were getting destroyed by these price hikes, guess what? This was very, very profitable for Big Oil And those who set these prizes in the first place and even when oil prices fell from Peaks, most in Big Oil continued to rake in record dough. Charlie You are an idiot and you are wrong. This is capitalism. This is the free market.

and when you have a functioning Market that means that if an oil company is charging above market value, somebody could just go and undercut them. Let me stop you right there. If you were somebody that believes that big oil and oil cartels play by the free market, well, I've got a bridge to sell you. So why specifically, has this year been so profitable for big oil, well, think about this.

If you are an oil company that drills your expenses to drill Maybe fluctuated five to ten percent, but oil prices fluctuated 2X or more. Oil prices went from 52 bucks a barrel at the beginning of 2021 to 120 bucks in Q3 of 2022.. that's an almost 130 percent increase. so you're making a lot more money on the same oil than you did ever before.

And from your own perspective, it's not that much more expensive to drill it now. Of course, in down periods like 2020, you also can get punched in the face, but you can cut down your expenses a lot during that period of time by cutting production. and most of the time, oil prices are very high anyways because of price fixing, so it more than makes up for it. So you basically get huge windfalls for doing nothing.

And in a country like the US which sometimes produces more oil than it consumes and certainly does have the capacity to produce more oil than it consumes, There's a little extra hassle for oil drillers if something bad happens on a global stage, but they can get away with charging significantly more simply because Global prices are benched more tired. So essentially for Big Oil Foreign invasions and oil price fixing cartels. whether or not you have an influence in them, Well, they basically give you constant windfalls for doing nothing. And of course, there's other parts of the supply chain: the refineries that actually turn the oil into usable forms of energy, the storage companies, the transportation companies, and then the actual gas stations.

Many of these supply chain components are in one or two companies, and in many cases, companies that had a ton of oil already in storage, bought or drilled at much lower prices. All of a sudden saw that inventory double or triple in dollar value, so you could see that how all these old companies, despite not having to do anything, have made out like bandits in this crisis. Now I Know what you're going to say: Charlie We should love, We should love oil and gas companies. We all dreamed as kids that we would grow up to be oil drillers and take oil baths.

They make us tingly tingly so Charlie Why are you hitting on them for making a profit? This is capitalism and they're just trying to maximize the returns for their shareholders. You can understand that right? Charlie I Mean after all, on a micro scale, every single individual oil company and oil seller is a price taker, not a price. Setter Price prices are set on a global stage, right? If I go and I sell my house at current market prices that may have gone up 30 percent in my area the last few years. Am I really to blame for elevated prices I didn't set the market prices I just take them right.

They could have just as easily gone the other way and I could have gotten screwed right. While it's a little bit more mixed when it comes to Big Oil Here's another analogy. So if somebody lets a wild, vicious dog out of his cage in a crowded area and the dog bites someone who is to blame, Well, technically both parties, but the vicious dog is going to do what the vicious dog always does. fight, That is the natural programming and Instinct of a vicious dog.

similar to how oil companies natural instinct is to make as much money as possible for their shareholders, which again, I support as a capitalist. but of course you have to have the right environment right. and you can't have certain people going and intervening and setting market conditions and creating entire markets unfairly. it is the person or people rather who let the vicious dog out of the kennel in the first place that allowed the bite to happen and set the inappropriate conditions.

And that's the situation that we are in. Who are these people that let the vicious dog out? Woof woof. Well, cartels. Namely, OPEC Plus and then you have the flawed energy and foreign policy decisions of the US and European and other Western governments.

And obviously, in some cases, the Vicious Dog and the Big Oil cartels are the same entity. So this isn't the Perfect Analogy. But the point is, they are letting the Vicious Dog out and the Vicious Dog is biting people. And yes, prices are going down right now, but it's going to continue to try to bite people as much as possible.

Oil prices would be a lot lower right now if they weren't cutting production. and that brings us to the main way of how they are letting the dog out. with production limits despite demand skyrocketing OPEC and oil cartels have refused to meaningfully boost it. CNBC Reported that OPEC Plus agreed in early October to reduce production by 2 million barrels per day from November and there are expectations that they will continue cutting massively into 2023..

at the same time, overly optimistic green energy policies in Europe and to some extent in the U.S have reduced incentives to produce and even punished companies that over the last two decades would have invested in more reliable power infrastructure. So instead what did they do? They decided to keep production low and prices. High The way that energy policy works in the West is: we're going to go ahead and we're going to phase out proven, reliable but dirty forms of energy. We want to phase it out as fast as possible.

so we're going to go ahead and push the phase it out without worrying about whether or not stopping is available to replace that same energy demand that it was servicing. And if you disagree with that policy, it's simply because you hate the Earth you hate it Foreign Policy.com reports Europe's crisis has been two decades in the making. Aiming to engineer a fast transition from fossil fuels and nuclear energy to renewable sources. European Policy makers forced profound changes in the energy.

Supply At the same time, they ignored projections for continued demand for oil and natural gas as well as the need for a reliable base load fuel source to backup inter immediate solar and wind. Many EU member states cut back domestic production of fossil fuels and constrained Imports with the notable exception of gas from Russia of course, because they're so environmentally friendly Germany which has significant gas deposits of its own banned fracking as did France and other countries over the past decade. European Domestic production of natural gas has halved and today Imports make up 83 percent of Europe's gas consumption. It gets crazier, believing it will soon be able to do without gas.

Europe has also blocked long-term contracts for imports with the result that Europe is starving for gas even though it is surrounded by some of the world's largest gas reserves. Again, this is an example of I'm going to go ahead and I'm going to gut dirty energy before having something to replace it with, or at least having something that is reliable to replace it with. They've also gutted some pretty clean and efficient energy sources if they're properly controlled, like nuclear energy. Under the pressure from activists in green parties, Germany and several other countries also chose to phase out carbon-free nuclear power despite an impeccable safety record.

So in popular culture, I Understand it: you are either for or against Green energy if you are for it. We are told by the media who travel in private jets everywhere that you must. You must be willing to send humans back to the Stone Age so that we can transition as fast as possible. And if you are against it, you aren't even allowed to acknowledge that eventually.

Once green energy does develop and actually becomes cheaper and more efficient than dirty forms of energy, then it's going to be a lot more sensible to choose the green energy. Like most issues, this is a very moronic way of looking at things and it creates bad decision making. You can be for green energy and green energy development and also acknowledge that the tech isn't exactly there yet and you still need some backup sources of energy. If you have transitioned over, Nobody that is buying energy from Russia cares about the the environment Because guess what? Russia doesn't care about the environment.

Russia is not a clean energy source and quite frankly, they are using that money to destroy environments in Europe And even before they did that, they produced it with much less regulatory standards. If anything, any country, any politician who says they care about clean energy and then supports supports countries that produce dirty energy and destroy the environment is just lying. They just don't want them to produce it at home because oh, it looks bad personally. I Support green energy.

We've talked about many green energy companies, but this is not the way to do it. It's not the proper way to do it. You first develop the Technologies you phase it in as you get the Technologies appropriate to do so and that's how you change things. You don't jump the gun before the industry can take it.

and then finally, you have to think about this from a big Oil Company perspective. If you're an oil company or an investor in oil, and you're being told by politicians for decades that oil is in a sunset industry and government is going to get more and more hostile towards it, well, what do you you got to do? Are you going to invest tons more money into building more infrastructure? Or are you just simply going to milk the current infrastructure that you have already built for all that it's worth? And then during the next Crisis when the government comes and yells to them to build more production capacity, what are they going to say? Well They're once again going to go ahead and flip them the middle finger. Oh, you want us to build more production capacity now? but you were screwing us the last 20 years. Hey, screw you.

We're not going to produce anything else and we're going to milk you. We're going to milk you like cows. And I don't know folks. I Mean sure, you can demonize.

Big Oil They've profited greatly, but at the end of the day, there's a lot of different parties here to blame. Why would big Oil be incentivized to invest a ton more into the economy when in a few years the government's just going to go ahead and reverse and start slapping them in the face again. When in 10 or 20 years, the government's probably going to force a complete sunset on the industry they're not going to. They're going to milk everything for what it is now because that is the environment that the government has set up and on a broader scale.

Price fixing oil cartels are making sure that prices remain elevated anyways. And because of this, I mean oil production is essentially held in its own captivity. It can decide tomorrow to run and throw that chair swinging, but the players make tons and tons of money keeping production low, and governments and activists want to brag about how virtuous they are for saving the planet while also arming countries that are literally destroying the planet. And so everybody except for the average everyday person is happy with the status quo.

We are told every day by media and politicians that we must. We must demand all dirty energy production be completely shut down today, and we can ask questions tomorrow on how we're going to replace it. But it all needs to be shut down today. We shouldn't focus on the phasing out.

We shouldn't focus on the process at all. Those things don't matter. What matters is that we gut everything today. Who we hurt in the process, what countries we arm in the process, what geopolitical.

and National Security we get rid of in the process. Those things doesn't matter because the temperature is going to go up in a few years and one of the ways to fight this is to stay informed and not deal with the brainwashing that is going on right now. When anybody tells you that something is black and white, you have to look at them and say you're lying, you're a liar and you have some ulterior motive. Hopefully we're able to paint a bit more color into this picture so that you're a little bit more informed.

but I Do recommend doing some more research because this is a big issue. Anyways, let us know your thoughts down below and make sure to hit that ravishy like button and subscribe and we will see you in the next one.