Boneless Wings #34

**NOTHING HERE SHOULD BE CONSIDERED INVESTMENT ADVICE**

Good morning to all my wingmen and wingwomen out there. Here are a few noteworthy and tasty bites worth digesting. Enjoy!

Largest release ever….

Last Thursday, President Biden announced the largest release from the Strategic Petroleum Reserve (…or SPR) in the tune of 180 million barrels, or 1 million barrels per day for 6 months. Interesting facts about the SPR…..

• The US SPR currently has just under 570 million barrels total.

• These 180 million barrels represents the largest ever release since it was created back in 1974.

• These 180 million barrels are about 2 days’ worth of global supply.

• This release marks the third time in the Biden administration has tapped the SPR in the last 6 months.

The President says he’s doing this to help tackle raging inflation (….brought on by tighter supplies given the Russian led Ukraine tragedy that continues to unfold) and reduce the “pain at the pump” that Americans are facing….referring to gasoline prices. Gasoline prices have climbed over the past year with the average price today ~$4.22/gallon vs ~$2.81/gallon a year ago. Given this isn’t the first time they’ve released barrels from the SPR and gas prices have continued to climb…..it’s obvious this move isn’t guaranteed to lower gas prices. However, many predict we should see national gasoline averages below $4/gallon in the short term.

The President has also taken aim at US oil companies challenging them to drill baby drill (….kinda ironic and funny to hear this administration saying that now) to increase supply and help reverse the inflation impact.

Unfortunately, it isn’t that easy. These are public companies operating in the free market……and they answer to their shareholders, not government ridicule. Over the past few years, these investors have voiced concerns over chasing production at all cost and have made it clear they seek fiscal discipline that benefits shareholders….in the form of share buy backs (…..increasing the per share value of the stock) and dividends (…..increasing the dollar bills in investors pockets).

As mentioned in Boneless Wings #19, I still believe there are ways oil companies can improve production outside of just drilling new wells. Although, I also believe the federal governments needs to take a more proactive and friendly approach with the industry. Regardless of how you look at it, there’s too much on the line....including national security.

Puff puff pass[es] the House.

Cannabis is an interesting industry from an investment standpoint. There are a significant number of legitimate Cannabis companies that have been established over the last handful of years. And given that it has been federally illegal for 88 years now, last week’s bipartisan House majority vote to decriminalize marijuana was a big step forward in legalization. That said, it doesn’t have a high (….no pun intended) chance of passing the Senate……at least for now. Still, in my mind things are clearly progressing on this front.

If Chef Tasty was asked to weigh in, I’d likely vote with Snoop D O double G. No, I’m not a user and may not be a great spokesperson for it…..but, I don’t see it being an issue, personally. In fact, I think there are plenty of reasons one could argue it’s less destructive than alcohol (….yes, Chef Tasty can speak to this vice) and likely has a fraction of the negative downsides that come with alcohol including health, crime and associated deaths.

But even if it does find a path towards legalization at the federal level, it will still be up to each State to decide. Most states have begun to decriminalize over the last decade, but not all States have decided to light up (….pun intended). And until that happens, it will still create some headaches for companies trying to take part in it across the U.S. Generally, a business that can’t operate across State lines creates red tape and hangovers, and headaches for those involved (….again, pun intended). That said, it hasn’t stopped people from partaking in the opportunities that this natural herb has presented……including some who have spent their careers fighting against it……like former Republican House Speaker Jim Boehner.

As far as I’m concerned, I don’t believe the Boehner’s of the world should be the only ones able to profit off this after spending a career in opposition to it. It’s likely time everyone should just chill and puff puff pass this into law (….you already know, pun intended).

Here’s a good visual I found on the topic named A Guide to Cannabis in the U.S. And here’s to hoping my mother isn’t reading this!

Not so Strawberry Pop-Tarts

Wait, you’re trying to tell me there aren’t significant amounts of real strawberries used to make Strawberry Pop-Tarts……??? Say what?!?!? #blasphemy

Deuces. ✌️

- Chef Tasty