During his opening monologue on Wednesday’s All In, MSNBC’s Chris Hayes defended President Biden’s decision to raid the Strategic Petroleum Reserve because gas prices have to be lowered in order to save American democracy from Republicans and their allies in Saudi Arabia and the fossil fuel companies.
The SPR exists to provide an oil infusion in case of emergency, but for Hayes, it exists to save him from the consequences of his terrible energy policy and lack of diplomatic skill, “You know, there is not a lot that American presidents can do to control gas prices, even though their political fate often depends on whether they’re going up or down. They do have the one trick up their sleeve. ... It’s known as the Strategic Petroleum Reserves... a kind of emergency source to protect the U.S. from having to deal with a sudden supply crunch, which is basically what we’re dealing with now.”
Hayes blamed OPEC’s decision to cut production for the recent rise in prices, which coupled with Russia’s invasion of Ukraine, forced Biden’s hand, “And so, today, President Joe Biden decided to pull a lever. He announced he will release 15 million barrels of oil from the strategic reserves to bring down gas prices.”
Gas prices were raising well before February, but that excuse aside, Hayes admitted Biden’s move is completely political, “And yes, this is a pretty transparently political move on behalf of the President. That is because gas prices are and have historically been a driving factor in U.S. politics.”
After playing a montage of presidents of both parties being criticized for high gas prices, Hayes claimed Republicans actually want high gas prices, “Republicans for their part are pretty mad about Biden’s move because of course, they don’t want lower gas prices, they want to be able to attack Democrats on the price of the pump. And again, there’s good reason for that. There is really robust evidence the price of gas is one of the -- if not the most important factors in a President’s approval rating.”
No, Republicans are mad because Biden is using the SPR as his electoral plaything. At the same time, Hayes almost accidently stumbled into the truth, “And while Presidents of both parties have struggled with this problem, right, you’re held responsible for this thing you can’t control, it is much harder for Democrats to tackle it than Republicans... And that makes sense. Republicans are squarely the party of fossil fuels of oil companies and a drill baby drill... They don’t care about climate. They deny it. They hand waved away.”
Turning to the Saudis, Hayes contended that because Democrats care about Jamal Khashoggi and “wants to fight climate change, which means the ultimate abolition ultimately of fossil fuel burning. So, this is not a tough case, right? Oil companies, OPEC, Saudi is not exactly eager to make sure prices are low before an election where Democratic candidates are vulnerable. It’s also why Saudi Arabia might want to suddenly announce a cut in oil production right before the midterms.”
Given all these factors, Hayes declared that, “Of course, Democrats can’t just throw their hands up and say, oh, well, because the future of American democracy is in as we report night in night out on this program, real peril, existential peril. One of the two major parties is currently under the thrall of the guy who tried a violent coup unsuccessfully but has basically announced he’d do it all over again.”
Or maybe, if Biden had better energy policies and wasn’t a lousy diplomat, we could have lower prices without having to raid the emergency stockpile.
This segment was sponsored by Tide.
Here is a transcript for the October 19 show:
MSNBC All In With Chris Hayes
10/19/2022
8:01 PM ET
CHRIS HAYES: Good evening from New York. I’m Chris Hayes. You know, there is not a lot that American presidents can do to control gas prices, even though their political fate often depends on whether they’re going up or down. They do have the one trick up their sleeve. There’s an enormous stockpile of actual barrels of oil along the coastlines of Louisiana and Texas where there are hundreds of millions of barrels stored underground. It’s known as the Strategic Petroleum Reserves.
I think a lot of people have heard that and think it’s some accounting thing. It’s not. No, it’s literally a reserve of oil that we keep in caves. We started stockpiling barrels of oil after the Arab oil embargo in the early 70s, a kind of emergency source to protect the U.S. from having to deal with a sudden supply crunch, which is basically what we’re dealing with now.
Earlier this month, the Saudi-run oil cartel known as OPEC announced that it would slash production by two million barrels a day. Gas prices are already pretty high but that would result in further skyrocketing of prices, like the ones we saw right after the Russian invasion of Ukraine. And with 20 days before the Midterm Election, that of course can make a huge difference in the outcome.
The fate of American democracy hangs largely on these little digits you see at gas stations across the country, as wild as it is to say that, it’s basically true. And so, today, President Joe Biden decided to pull a lever. He announced he will release 15 million barrels of oil from the strategic reserves to bring down gas prices.
(BEGIN VIDEO CLIP)
JOE BIDEN: Gas prices have fallen every day in the last week. Let me repeat, gas prices come down and they continue to come down again. They’re now down more than $0.27 a gallon in Wisconsin this past week, $0.27 in Oregon, $0.16 in Ohio, $0.25 in Nevada, $0.17 in Indiana in just the last 10 days and that’s progress, but they’re not falling fast enough. When the price of gas goes up, other expenses get cut. That’s why I have been doing everything in my power to reduce gas prices.
(END VIDEO CLIP)
HAYES: And yes, this is a pretty transparently political move on behalf of the President. That is because gas prices are and have historically been a driving factor in U.S. politics.
(BEGIN VIDEO CLIP)
IRVING LEVINE [SEPTEMBER 25, 1979]: Senator Kennedy has said that the state of the economy will be a main factor in his decision on whether to challenge President Carter. Democratic officials say that today’s inflation figures may play into Senator Kennedy’s hand. Those figures include gasoline up 3.7 cents a gallon on average last month, up 28.2 cents a gallon so far this year.
REPORTER: Politicians smelled not fumes but opportunity. Republicans called for repeal of the 4.3 cents a gallon federal tax that the Democratic Congress imposed in 1993.
BOB DOLE [APRIL 29, 1996]: We need to find some way to help the driving public.
UNIDENTIFIED MALE [MAY 18, 2004]: For Democrats a coordinated attack on high gas prices and the President’s response.
JOHN KERRY [MAY 18, 2004]: Highest prices that we’ve had in this country on average ever and where’s the president?
TERRY MCAULIFFE [MAY 18, 2004]: It is now time to can Bush.
RAHM EMANUEL: July 2001, buck 33. It’s more than doubled in the five years that President Bush and Dick Cheney have been in government.
(END VIDEO CLIP)
HAYES: Republicans for their part are pretty mad about Biden’s move because of course, they don’t want lower gas prices, they want to be able to attack Democrats on the price of the pump. And again, there’s good reason for that. There is really robust evidence the price of gas is one of the -- if not the most important factors in a President’s approval rating.
One study from 2016 looked at data from 1976, through mid-2007, found "a ten cents increase in gas prices lead to a 0.60 percent drop in approval for the incumbent president. So, in other words, if gas prices go up by fifty cents, a President loses three points in approval. If gas prices go up, $1 that’s six points. That’s enormous in our polarized electorate, particularly elections are lost by six approval points. That’s the difference between, you know, 10 seats and 30, a bunch of Senate seats.
So, there’s a bunch of tangible evidence now that this is a major issue for President Biden. We’ve got analysis from the New York Times, the Washington Post, left-leaning pollster Data for Progress all finding a correlation between Biden’s approval rating and gas prices. And while Presidents of both parties have struggled with this problem, right, you’re held responsible for this thing you can’t control, it is much harder for Democrats to tackle it than Republicans. Because, well, for starters, the big oil companies love Republicans.
According to the organization open secrets which tracks money in politics, "since the 1990 election cycle, more than two-thirds of the energy sector’s contribution to candidates and party committees has gone to Republicans." And that makes sense. Republicans are squarely the party of fossil fuels of oil companies and a drill baby drill. They’re also the party of burning the planet to a crisp long with all the coal, gas, and oil underneath the ground. They don’t care about climate. They deny it. They hand waved away.
It’s also why Donald Trump’s Secretary of State Mike Pompeo was perfectly fine traveling to Saudi Arabia to clad hand and smile and joke with Crown Prince Mohammed bin Salman, MBS, two weeks after MBS ordered the murder of American newspaper columnist Jamal Khashoggi and his goons hacked up his body with a bone saw.
(BEGIN VIDEO CLIP)
MOHAMMED BIN SALMAN: How was your trip?
MIKE POMPEO: It was good. Uneventful.
BIN SALMAN: Good. I hope you don’t have jet lag.
POMPEO: In a little while, but so far, so good. And thank you for hosting me on such short notice.
BIN SALMAN: We are really strong and old allies. So, we face our challenges together. The past, the day of, and tomorrow.
POMPEO: Absolutely.
(END VIDEO CLIP)
HAYES: Just sitting here with a guy that just ordered him bloody murder because we got to get the oil flowing. The Saudis have a lot of control over gas prices, the biggest oil-producing nation. And for Republicans, that’s really all that matters. That means OPEC and the big oil companies, well, they’re inclined towards the Republican Party over the Democratic Party.
Remember, Democratic Party is the party that wants to fight climate change, which means the ultimate abolition ultimately of fossil fuel burning. So, this is not a tough case, right? Oil companies, OPEC, Saudi is not exactly eager to make sure prices are low before an election where Democratic candidates are vulnerable. It’s also why Saudi Arabia might want to suddenly announce a cut in oil production right before the midterms.
Of course, Democrats can’t just throw their hands up and say, oh, well, because the future of American democracy is in as we report night in night out on this program, real peril, existential peril. One of the two major parties is currently under the thrall of the guy who tried a violent coup unsuccessfully but has basically announced he’d do it all over again.
