I never

 

really liked this guy:

Larry Kudlow

A lot of his prognostications have missed their targets by a long shot to say the least. (You can check out the Wikipedia article for those). But yesterday driving back from town and searching for something on the radio and they were talking about the Strategic Petroleum Reserve Drawdown so I listened in for a while and some of what he said was 100% correct.

"This is going to destroy the SPR."

He is absolutely correct about that, it most assuredly will and at the worst possible time.

Why six months for the drawdown? 

Is what keeps going through me head...Why? Does the White House not know about the steel shortage? That there aren't enough workers for the Permian and Bakken basins? That there is an ongoing commodities shortage besides steel?: frac sand, chemicals needed to open the shuttered wells and other essentials that are needed?

Steel Shortage Adds To U.S. Shale Drillers’ Woes

The U.S. Oil Industry Is Facing A Talent Crunch

(Thats a great website BTW)

That second article is from Sept of last year, but how much do you think has really changed since last September?

"...the Energy Workforce & Technology Council said in an analysis based on preliminary data from the Bureau of Labor Statistics (BLS). The council estimates a peak of more than 115,000 pandemic-related job losses. Since then, the sector has restored around 38,300 positions, bringing total pandemic employment losses to 76,800 jobs and $8.7 billion in annualized lost wages.

"...the next generation of employees, Millennials and Gen Zs, are not too keen to work in an industry they view as dirty, difficult, and dangerous. While salary is often the biggest draw for working in the oil industry, many young people would choose other industries with similar pay because of their perception that oil and gas is an industry of the past and one that does not represent their values.

There ya go. 

Everybody that can't wait to go to that area and work 7/12's  (seven 12 hour days) for months on end, doing dirty, dangerous work, while being exposed to the elements and sleep on a cot in a converted cargo container housing 4 individuals raise your hand. I didn't even mention anything about winter when it comes. 

"This record release will provide a historic amount of supply to serve as bridge until the end of the year when domestic production ramps up,” the administration said in a statement.

Right....

(Thats sarcasm BTW)

All of this is just going to solve itself in six months? The supplies and the worker shortages I mean. I wouldn't count on it. The supply lines were supposed to iron themselves out by now remember? And inflation is just gonna magically cure itself like it's never done in 70 years of record keeping as well.

1 Thessalonians 5:3 

The Day of the Lord

…For you are fully aware that the Day of the Lord will come like a thief in the night. While people are saying, “Peace and security,” destruction will come upon them suddenly, like labor pains on a pregnant woman, and they will not escape. But you, brothers, are not in the darkness so that this day should overtake you like a thief.…

If you're not in darkness? Then what would you be in?

Whats kinda been an ongoing theme with for a week or so now?

 Like I was saying yesterday, 

I would expect the situation to be worse in six months than it is currently...

So then what?