Even with Biden releasing some of the strategic oil reserves to the public, the price of gas is still soaring! Will the anticipated price dip last?


A few years ago I was driving one of my favorite cars…

It was a 2011 Dodge Ram 1500, it was fire-engine red, and I absolutely loved that car. 

However, I had bought it used and driven it for seven years, and things were starting to break down. Since I’m not particularly handy, I thought it would be prudent for me to trade it in and get something new. 

So, I did…

I traded Burt (we named the truck Burt after BRT, “Big Red Truck”) in for a brand new 2018 Honda Fit that I immediately named Pam Belam (after the Ram Jam song “Black Betty”).

Woah Black Betty (bam ba lam).”

Now, going from a rather large truck to a tiny Honda Fit was almost culture shock, but if there was one thing that made it all worthwhile, it was the fact that I could fill the Fit’s ENTIRE tank for a third of what it took to fill Burt’s tank. 

Unfortunately, I got T-boned in Pam Belam a short time later and got a new Fit–this time named GiGi for “Gray Ghost”–and I then proceeded to trade that in for Pam Belam II, a black Kia Soul.

And all of them get WAY better gas mileage than Burt could ever dream of.

That’s the abbreviated history of my last decade of car ownership…and looking at gas prices right now, if I hadn’t stopped driving a big ol’ truck back then, I’d certainly be making that change now.

Say Goodbye To Burt And Hello To Pam Belam II

Of course, the government is doing what it can to combat high gas prices…but it hasn’t been enough. 

The demand is outpacing the supply…so what can they really do? 

Luckily, there is some relief coming…potentially.

We saw a small dip in price this week following news from the White House that President Biden will soon be releasing 1 million barrels of crude oil from the US Strategic Oil Reserve per day for the next six months to help alleviate some of the costs at the pump. 

At an expected 180 million barrels total, this is the largest release EVER from the US reserves. 

Is it a good move? 

Well, in the short term, yes. Americans need some help at the pump, and the release of the reserves will give them some relief–but will it be enough? 

Many experts say no. The release of the reserves does not do anything to combat the biggest issue at hand: our demand is outpacing our supply. 

Is There An Answer?

So while the release from the reserves will help in the short term it won’t be enough.

Eventually, that six-month release window will close, the demand will still not be met, and those reserves–originally intended for use during emergency situations–will still have to be replaced. 

The long-term answer, the best possible solution for moving past this, is the solution that no one in power seems willing to consider…

We need to up the supply.

The only way for us to get some REAL relief over the next six months is for President Biden to rescind, even if only temporarily, his executive order that bans fracking on federal land. 

While it’s true that there are thousands of oil leases yet to be used, none of them can be used for fracking. Traditional oil drilling could take upwards of two years to see any yield of oil, while fracking can have us humming again in just a few months.

Whether the Biden administration will pursue this route remains to be seen, but in the meantime, investors who want to take advantage are investing in oil and EV companies–because those markets are heating up faster than Usain Bolt’s shoes. 

Oil and gas companies have been KILLING it during the shortage…and right behind them is the EV industry. 

This is why I’ve been telling our readers that there’s no reason to freak out if there’s a bear market or a recession.

Money is still going to be spent on certain things–and if you know where that money is being spent, you can reap the rewards by investing in those areas. 

It’s not rocket science. 

Just takes a shift in our attitude and trading strategy. 

One thing’s for sure, though: if oil prices keep climbing, I won’t be driving around in Burt, Pam Belam, or Gigi…

I’ll be peddling around on my Midnight Rider.

“Oil is like a wild animal. Whoever captures it has it.” – J. Paul Getty