neil: all right, top of the 1:00 p.m. hour on the east coast of

the united states and we have a little bit of sell-off going on right here. the president is about a half hour away from outlining his plan to tap the strategic petroleum reserve yet again. this time, to facilitate decline in energy prices. its been all over the map when it comes to oil right now, but might be helping the president in the overall scheme of things is a slowdown in the global economy, that is, sort of sap ping that demand right there so maybe this isn't necessary? depends on who you talk to. the president thinks it's very necessary, but the boost is obviously affecting a lot of different markets including the yield on the 10 year, which has been inching up right now, to multi-year highs yet again, and that is buffeting stocks particularly in the technology side. more coming up in a moment but to edward lawrence first on what we can expect out of the president. edward? reporter: yeah, neil, the president, president joe biden, about 15 minutes or so, is going to highlight his plan now. the last of the release from the 180 million-barrels that he had previously announced from the strategic petroleum reserve.

the president is also going to specifically call out and pressure gas and oil companies to just lower prices. now, here are the list of dates from the releases under this president. you can see it all adds up to 260 million-barrels. now the chief executive at the canary, one of the largest oil field services companies questions all of this. >> administration has to refill this at some point, right? so we'll need 200 million-barrels that the administration will have to buy. now they are saying they do that when oil hits $72 a barrel. what does that mean? that means consumers are not going to get to benefit if oil falls below 72 because the government is going to be in the market competing with them to buy the same barrels so to me it's completely unstrategic. reporter: so president biden will also again layout the plan to refill the reserve when the price hits between $67 and $72 a barrel. now, if the biden administration can buy all of the oil, the president released back at $67 a barrel, that's

$17.4 billion to $18.7 billion if it's at the $72 mark. former president donald trump tried to put 3 billion in the cares act to refill the strategic petroleum reserve at $24 a barrel. senator chuck schumer championed the cause against the money and got it removed. in a letter to democrats at the time, the senate majority leader said he eliminated a $3 billion bailout for big oil, but if democrats had failed at preventing the release and the buying of that oil at $24 a barrel you're just talking about $6.2 billion less than half, much less than half of what president biden could potentially spend to refill this on taxpayer money. no word from senator schumer on if that plan is a bailout to oil companies. back to you. neil: i think the big story here , edward, is i don't hear that vacuum thing, that i did the last few days. there's a subtle tone of

something, but you're weathering it just fine. what's going on? >> it's the union lunch break. it's back there. neil: you've got, all right, roc co online 1 from the union wanting to talk to you thank you very much my friend. connell mcshane is here, right now. i could say that because i'm italian. it goes with the territory. connell, it's interesting here because we're talking already about how do you help americans out with the higher price the president wants to tap the reserve but even the irs is pitching in here right? connell: yeah, doing their part, but at some point, they had to or somebody had to give on some front with inflation, and the irs was the latest example, we saw this with social security as well cost of living increase 8.7% and now we have changes to the tax code which amount to about a 7% change from where we are to where we're going. we'll go through it in detail to give you an idea what to expect with the irs putting out its parameters for 2023. we saw standard deduction go up, we also have the thresholds for the tax brackets going up, so on the screen, we'll look at

the individual filers. these salary numbers be higher for a married couple but you get the idea. the top rate, tax rate on the federal income tax is still at 37%, but now, that applies to an income over 578, 125, for an individual. that's where you have a 7% increase from where it was. you go down the list here 35% is around 230 grand and 32% 182000, so on and so forth, so the lowest rate of 10% which is incomes 11,000 or below so all that goes up. next the standard deduction if you don't itemize this is what you would subtract from your income before income taxes applied so that's also a 7% increase numbers wise it's just under 28,000 compared to just under 14,000, or you know, for individuals and married couples it's now just under 14 for individuals, so that 7% increase would help ease the pain a bit from inflation as well. we looked on a chart to give you an idea or a little bit of perspective on the standard deduction. big increases at the end of this

chart, and if you think about it inflation right now is higher than its been in 40 years , so these adjustments they have to make at the irs, percentage wise they are pretty hyatt least by their standards as well, because of that. the tax code started to be indexed to inflation back in the 80s, 1985 and the change we just showed you, this automatic adjustment, is the largest we've seen to the standard deduction since then. now its changed other times as well. you know, when they had the tax law in 2017, for example, but this is the largest automatic increase we've seen, which gives you an idea of how much inflation is hitting things. final point here to make. this effects a lot of people in terms of flexible spending for healthcare. they have increased the cap there as well from just over 2,800 to just over $3,000. what we haven't seen yet, neil, is how much the thresholds might go up for people contributing to their 401 (k) plan or other retirement accounts hasn't been released but you'd think if they are moving in this direction that probably will increase too, so, yes, inflation still hurts but maybe this helps a little bit.

neil: and we should stress as you point out it doesn't make people whole here. connell: no. neil: just makes them less in the tank, right? connell: right if you have the inflation running at 8 point some-odd percent you try to keep up with a little bit but a lot of people are getting hit harder as we report everyday on so many other everyday items but again something had to give. they had to do something. neil: indeed. and as connell was speaking he has this magic touch where the dow was doing fine until he got up here and started doing his report. we're down over 260 points i wondered i'm making the leap here, another key minister, the second as many weeks, has left the liz truss government, a lot of people are interpreting that as a sign that if you think england has been sort of banged around all over the map between its currency and its markets and its guilt or bond market, this is another reminder that a conservative government could be collapsing as we speak. the likelihood of that and the fear that it is going to happen sooner rather than later is the latest catalyst for this sell-off. no doubt, those developments,

including talking two more ministers are thinking of doing the same, not good right now. it is about five hours ahead in britain, so that would put us around 6:07 p.m. a number of ministers talked about the possibility of addressing the press later tonight, whether they choose to follow their two colleagues, is anyone's guess, but again, does not look good for liz truss or for that matter the markets as a result of this perceived instability. scott hodge is with us right now , scott of course the tax foundation president, senior policy advisor. you know, scott, if we ever needed reminders how globally we're linked and of course remember this date 35 years ago where we were all the world's markets were in a bit of a free fall, it comes back to this notion of whether governments are in a bind, and just flailing here. do you think that's behind a lot of this , that we're flailing globally? >> well, when it comes to liz truss, i think in many respects

she had the right idea. great britain needs capital investment and their tax laws are very unfriendly, if you will , to capital investment, especially things like factories and machinery and that sort of thing, and she was trying to do the right thing to bolster that by preventing tax increases. here in the united states, i would say the biden administration has turned over the keys to the economy to the federal reserve and said it's up to you to fix the economy and to stem inflation. neil: they are the only game in town, right? i mean whether you like the federal reserve or not, they are the only ones really controlling the levers here. >> oh, no, i wouldn't agree with that, because the fiscal side of the budget, the spending side of the budget, is out of control, and that's also contributing to inflation. you know, inflation -- neil: but what i'm saying, scott , is they're not doing anything to ease that, so we put the pressure on the federal

reserve to do what it can to mitigate that, right? >> yeah, fair enough, but we do need to reign in spending, and the national debt, and right now , of course, the biden administration has thrown trillions of dollars out there and is flooding the economy and i think that that's contributing to inflation, so until we stem the spending side of the federal budget, i think we're going to see this picture extend well into next year and beyond. neil: you know, scott, you mentioned liz truss and her problems as well. what was ironic about her present conundrum was that the markets rebelled against her , that she was advocating the kind of things markets would like, tax cuts and that kind of stuff, but they recoiled at the prospect that she had no way to pay for them, or no clear plan it seemed to pay for them, and i'm just wondering if republican s were to take hold of washington, to take the house, maybe even the senate if you buy this real clear politics

prediction, would republicans be under the same gun? if you're going to cut taxes or employee tend the trump tax cuts, are you going to pay for them? i mean, would it be on a short leash, in which they be? >> it really depends upon the type of taxes we're willing to cut. for instance, bonus expensing, the immediate expensing of capital investment, which was a key part of the tax cuts and jobs act begins to phase out next year. now, we can prevent that from happening, simply by changing the law. now, that's not really a tax cut that's preventing the actual tax increase on capital investment and that's a smart thing to do to keep the economy going, to keep the predictability of capital investment going, and to prevent this sort of tax increase, if you will, on capital investment. that's a smart thing to do. now, if we were to just go back to what we did last year and that is hand out huge child tax credits, that's a bad idea,

especially if done by debt financing like we did, and so it really depends upon the type of taxes whether you're increasing capital investment and productivity in the economy or just simply transferring wealth which then people go out and spend willy-nilly. neil: well said, scott, thank you very much. i just want to turn your attention again to scott was speaking had nothing to do with anything scott said by the way of the free fall in the dow down about 267 points the latest catalysts seems to be developments ink across pond if you will in england where british prime minister liz truss who described herself in a rare appearance before parliament as a fighter not a quitter, she might be both but right now her own party seems to be turning on her. home secretary braverman said she resigned after sending an official document from her personal e-mail account in the resignation letter and she was also critical of some of the directions the party had taken. keep in mind that last week it

was the treasury chief which is their version of the treasury, who had resigned, was actually fired and has been replaced by a guy now whose going to raise taxes in britain to make up for the bad and ill-will greeting this new government, but it occurs at a time when we're told that two other ministers are considering doing the same. they've been very very critical of a lot of liz truss' actions. she's been prime minister now for what, about a month but she could be on her way out and the markets are reading in stability into that and any and all plans that seem to be hanging on a vine here, tax cuts didn't help, because they weren't paid for and talk of tax increases are alienating liz truss' own party, that hasn't really found that to be for everything they stand for and there she is in the middle getting pelted and maybe soon, gone. we'll have more, after this.

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neil: all right, from over there , over here, the same implications for the markets a sell-off going on right now with the dow down about 269 points we told you about developments in britain where the liz truss governmental about a month-old is hanging by a vine, as another key parliament member or key cabinet member i should say has resigned. of course this barely a week after the chance letter of the ex-checker also resigned, actually was forced out. the latest catalyst though on this side of the globe seems to be some comments coming out of neil kashkari, a non-voting member at least this year of the federal reserve open market committee, he will be a voting member next year bemoaning the fact that right now, he's seeing really no slowing in consumer demand. some pockets of that, but it's interpreted to mean that the labor market remained very very strong in his eyes, and people would pounce on that to say that's a clear sign as any that the federal reserve will continue its tightening moves, the betting seems to be

on a three-quarter percent hike in fed funds rate next month and maybe another such hike in december. too soon to say but we're following it. in the meantime, following how all of this is sorting out, in key races ink across country, as interest rates continue backing up, 10 year note now all the way up to around 4.12%, dan springer following the fall out right now in oregon. dan? reporter: yeah, who would have t hunk it, neil. when was the last time we said people around the country were following the oregon governors race but it's getting national attention. over the weekend president biden was here campaigning with and for the democratic candidate and last night, virginia governor glenn youngkin was here for the republican candidate and the gop has a real shot to win this state for the first time in 40 years as christine drazen has a slight lead in the polls in a three person race. youngkin has been doing campaign ing for republican candy candidates leading to

speculation he's testing the water for a presidential run in 2024. >> what i'm seeing all over is the issues are the same everywhere we go. inflation, crime, schools, everywhere we go, and that is what we're focused on. reporter: in oregon the races tight in this reliably blue state partly because of the well funded independent candidate betsy johnson whose a democratic state legislator for 20 years, but has been hammering democrat tina kotek relentlessly. >> the spoiler in this race is tina who spoiled my state and ran me out of my party. i am not the spoiler. if it were a two person race tina be measuring the drapes for our governor's mansion. reporter: as i said, kotek got a campaign stop from president biden over the weekend on policy , kotek is in lockstep with outgoing governor kate brown who tracking poll show is the least popular governor in the country right now. other polls show homelessness is the number one issue for voters

followed closely by speaking crime. >> there's no greater indictment of tina kotek's leadership as speaker of the house than the homeless crisis on our streets. she personally is responsible. reporter: and the youngkin visit here comes at a very critical time in this race. tonight is the third and final debate for these three candidate s. ballots go out to voters today in the mail, and i tell you, neil, this is a race that the republicans are feeling very confident they can end a decades -long losing streak. neil? neil: who would have thought crime be maybe the deciding issue thank you very much, dan springer in portland. my next guest knows of what dan just reported quite closely, loretta guzman is the coffee shop owner with a good idea to have a coffee event with a cop and then came, well, you guessed it, the crime. loretta, tell us what happened. >> the day before i took in and

posted that i was hosting coffee with a cop, because a lot of the community members, customers , they have a lot of questions and they feel like they aren't being heard, so when i was approached by the sergeant and asked would i be willing to host coffee with a cop as i have in the past i said yes and that might i got a lot of backlash and i was woke up and in the middle of the night, all my front windows were busted out and paint was sprayed throughout my whole shop, and so i came right over and my windows were still cracking at the time when i came up to the shop. neil: wow, and it was in response, you think, to this coffee with a cop plan of yours? >> well, i never had anything happen to my building before, or to my business, so this was like the very first time. neil: how did you feel about that? i mean, you're trying to do something good. you're trying to keep your customers safe. obviously yourself safe, in an environment right now, where

crime depending on the city, depending on the region, if it's anything like we're experiencing now in new york, is kind of out of control. what do you do? >> well, i still continued with the event. i still did it that day. i got behind the counter, started cleaning right away. i had customers and just people off the street and family and friends come in and just start helping to get it cleaned up, and i was able to still use my walk-up window and host the event so we still went forward with it, but we do have a lot of crime, a lot of drugs. we have a lot of stuff going on right now. neil: do you think, loretta, if there was more funding for police or at least no talk of defunding police, this would not have become the issue, its apparently become? >> probably. you don't see them as much on the streets as you used to, so i mean, you used to see them just driving and checking out the neighborhoods but it's like you don't hardly see them any

more. neil: meanwhile, are you still planning this event? >> oh, we still did the event. neil: oh, you did? >> that day. neil: and how did it go? >> it was good. we got a really big turnout, so customers came. they said when they started seeing backlash they said they got scared. they wanted to attend but they said they got scared just watching it, and then they were happy that i still was able to do it and they did show up, so they were like thank you for still doing the event, because i was able to come. neil: well good for you, loretta , you're a brave woman and you did a lot of good there. we appreciate and hope everything comes back to normal here, loretta guzman, the bison coffee shop owner, again dealing with something we're seeing happen all over the country but not recoiling from it or hiding from it. continuing to try the good deed of trying to make sure it doesn't happen again. we've got the dow jones industrial sliding, interest rates backing up and concern that some fed officials are very much on the inflation watch, and

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neil: all right, the president is going to the reserve again, tapping the strategic petroleum reserve announcing in the white house. let's listen in. >> 30% from the summer highs. now, it's down about $1.15 a gallon from their peak during the summer. gas prices have fallen everyday in the last week. let me repeat. gas prices come down and they continue to come down again. they are now down more than $ 0.27 a gallon in wisconsin in this past week, $0.27 in oregon, $0.16 in ohio, $0.25 in nevada, $0.17 in indiana, and just the last 10 days. that's progress, but they're not

falling fast enough. families are hurting. you've heard me say it before but i get it. i come from a family if the price of gasoline went up at the gas station we felt it. gas prices hit almost every family in this country and they squeeze their family budgets. where 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 since putin's invasion of ukraine cause these price hikes, these prices to spike and rattle international oil markets. i focused on how we can protect american families from that spike and give folks just a little bit of breathing room as my dad would say. today, i'm announcing three critical steps that my administration will take to reduce gas prices at the pump. first, the department of energy will release another 15 million- barrels from the strategic petroleum reserve, extending our previously- announced release through the month of december.

independent analysis, excuse me, independent analysts have confirmed that drawdowns from the reserves so far have played a big role in bringing down oil prices, bringing them down, so, we're going to continue the responsible use that national asset. right now, the strategic petroleum reserve is more than half-full with about 400 millio. that's more than enough for any emergency drawdown. with my announcement today we're going to continue to stabilize markets and decrease the prices at a time when the actions of other countries have caused such volatility, and i've told my team behind me here to be prepared to look further, look for further releases in the months ahead if needed. we're calling it a ready and release plan. this allows us to move quickly to prevent oil price spikes and respond to international events. secondly. we need to responsibly increase

american oil production without delaying or deferring our transition to clean energy. let's debunk some myths here. my administration has not stopped or slowed u.s. oil production. quite the opposite. we're producing 12 million- barrels of oil per- day and by the end of this year, we will be producing 1 million-barrels a day more than the day in which i took office. in fact, we're on track for record oil production in 2023, and today, the united states is the largest producer of oil and petroleum products in the world. we export more than we import and i still heard from oil company and i've heard from oil companies that they're worried that investing additional oil production today will, in case demand goes down in the future, and they're not going to be abe to sell their oil products at a competitive price later.

well we have a solution for that today, i'm announcing i plan to refill the strategic petroleum reserve, oil reserve in the years ahead at a profit for taxpayers. the united states government is going to purchase oil to refill the strategic petroleum reserve when prices fall to $70 a barrel that means oil companies can invest to ramp up production now , with confidence they will be able to sell their oil to us at that price in the future, $70 refining and refilling the reserve at $70 a barrel is a good price for companies, and it's a good price for the taxpayers, and it's critical to our national security. to put it in context, since march, the average price of oil has been more than $90 a barrel. the highest since 2014. by selling from the strategic petroleum reserve at the higher price of $90 earlier this year and then refilling it in the

future, at a lower price around $70, will actually make money for the taxpayers, lower the price of gas and help bolster production, all while totally consistent with my commitment to accelerate the transition to clean energy. so my message to oil companies is this. you're sitting on record profits , and we're giving you more certainty, so you can act now to increase oil production now. the third thing i'm doing is i'm calling oil companies to pass the savings on to consumers. consider this. in the second quarter of this year, profits at six of the largest producers of publicly traded oil companies were more than $70 billion. that's $70 billion in just one quarter, 90 days, 70 billion so far american oil companies are using that windfall and the windfall of profits to buyback their own stock, passing

that money on to their shareholders, not to consumers. in fact, in the first half of the year, those same companies spent $20 billion buying back their own stock and most importantly, buying back the most significant buyback in the last almost decade. that's great if you own a lot of stock in oil companies or if you're an executive at an oil company. puts a lot of money in your pocket. that is how you get paid, but it's not the case for the vast majority of americans pain at the pump. here is another thing. when the cost of oil comes down, we should see the price at the gas station at the pump come down as well. that's how it's supposed to work , but that's not what's happening. in the past two weeks the price of oil has fallen $4 a barrel. you think thanks in large part to the steps we've taken this year, the price of oil has

fallen nearly $40 a barrel since mid-june. that's a 30% drop in the price of a barrel of oil the, but guess what? gas prices haven't fallen that much, and it's not right. gas prices at the pump should be lower. in fact, if retailers and refiners were earning the average profit they've made over the last 17 years, americans be paying at least $ 0.60 less per gallon for every gallon they buy. say that again. $0.60 less for every gallon they buy. that makes a big difference in a family. my message to the american energy companies is this. you should not be using your profits to buyback stock or for dividends. not now. not while a war is raging. you should be using these record breaking profits to increase production and refining. invest in america, for the american people. bring down the price you charge

at the pump to reflect what you pay for the product. you still make a significant profit. your shareholders will still do very well, and the american people will catch a break they deserve and get a fair price at the pump as well. one more thing i want to mentioned to. our country needs to pass permanent reform, to accelerate the development of clean energy. right now the process of getting clean energy projects approved is too cumbersome, so i'm asking congress to pass a bill to speed up the approval of all kinds of energy production from wind to solar to clean hydrogen, because we need to get this moving now, quickly, now. if we do this , it would take clean energy investments that i signed into law and put them

into action. in fact, one independent analysis has already estimated that the $369 billion we're making in federal investments that will generate, if we just that, will generate $1.7 trillion in total public and private investments in the years ahead. you can increase oil & gas production now, while still moving full speed ahead to accelerate our transition to clean energy. that way, that way, we can lower energy costs for american families enhance our national security at a very difficult moment. let me close with this. i know its been a rough four or five years for the country. for a lot of families things are still tough. the choice is made by other countries are affecting the price of gas here at home. that's why i've been acting so aggressively. without the steps we've taken over the past several months to

ramp up production and lower prices and get relief to consumers, gas prices be higher than they are today, and we'll keep doing everything we can to keep it going, to ensure that our energy independence and security is available and to lower gas prices here at home, and to give folks a little bit of breathing room. we just have to remember who we are. we're the united states of america for god sake. there's not a single thing we can't do when we put our minds to it and we can strengthen our energy security now and we can build clean energy economy for the future at the same time. totally within our capacity. totally within our capacity. gas prices are coming down. we're going to do everything we can to make sure they continue to come down & companies act responsibly, so it's reflected at the pump. thank you, all, and may god bless you, may god protect our troops. thank you. appreciate it. >> [overlapping speakers]

>> can you speak louder, i don't hear? reporter: what is your response to republicans who say you are only doing this spr release to help democrats in the mid-terms? >> where have they been the last four months? that's my response. reporter: is it politically motivated, sir? >> look, it makes sense. i've been doing this for how long now? it's not politically motivated at all. it's motivated to make sure that i continue to push what i've been pushing on, and that is making sure there's enough oil that's being pumped by the companies so that we have the ability to be able to produce enough gas that we need here at home, oil we need here at home, and at the same time, keep moving in the direction of providing for alternative energy that's what i've been doing. now, the problem is these guys are asleep. i don't know where they've been and they seem, you know, the price at the pump should reflect what the price of a

barrel of oil costs, and it's not going down consistently. reporter: mr. president, is there martial law in parts of ukraine, what does that say to you, sir, about where his thinking is on the war in ukraine right now? >> i think that vladimir putin finds himself in an incredibly difficult position and what it reflects, to me, is it seems his only tool available to him is to brutalize individual citizens in ukraine, ukrainian citizens, to try to intimidate them into capitulating. they aren't going to do that. thank you. reporter: sir? do you want to ban the export of petroleum? neil: you've been listening to the president of the united

states tapping the strategic petroleum reserve to the tune of 15 million-barrels right now. he's already brought it down from over 600 million-barrels in that reserve, meant for national emergencies to a little under 400 million-barrels right now. he wants to replenish it at the rate of $70 a barrel that he would essentially urge the oil companies to make up. there's no indication of that. just a couple of corrections though, to just put this in some perspective. he talked about record domestic oil production in the united states on much higher than his predecessor, of course higher than his predecessors final year of course we were in the middle of covid everything was shutdown globally but in 2017 and 2018, the first two years of the trump adminitration and in 2019, we had three back to back to back record years of u.s. production. this level and these levels now pale in comparison, also to put into perspective what the president said that the oil companies aren't taking advantage of the leases and permits they have already been granted. there are about 9,000 on the

table right now. they are down from 16,000. of those 9,000, about 3,000 are being challenged by the environmental industry in court, which can monkey up that process for up to five even 10 years, so available oil and available lands and remember, oil companies buy this on the hunch or the hope that it will pay off. many are leary to do that because not all of them are what they call gushers or guaranteed money makers, and finally, on that issue of how much oil companies are obligated and the billions they are now making , keep in mind when we had oil prices about five years ago going below zero, there was no c larion call to bail out the oil companies even though at that time many wildcatters and refiners were going out of business and a percentage of overall revenues though, the oil industry doesn't even crack the top 10 as far as money maker s and again, whatever your views on oil companies, it is a

slippery slope here when you start deciding that their profits are ghastly, is it a further step to say or making too maybe phones or too much of a profit on those phones before you limit the phones or force them to pay gains on the money they are making off of those phones, it's just sort of like an academic argument, but just wanted to put some of that in perspective here, far from an apology from oil companies but i am just trying to remind you of capitalism and what is in inherent in capitalism. you make money when times are good and the environment is good for the product you market and drill for , but if you were to include the cost associated with drilling oil, this over 10 year, 20 year, 30 year, 40 year period means the industry is not really making as much money as others on a seem dollar-for-dollar average. one last thing before i go to my guests here, this notion that

the president can take credit for oil prices when they go down , but not for when they go up is a bit of a misnomer here, but it has been coming up a lot. we talk about now oil at $85, well it doesn't day by day change as what happens in oil markets translates into gasoline market. there is a lag effected and there is an average of that effect, and oil is traded in the open market as our gasoline contracts. the market determines that. not the oil players themselves. they are praying to that as well , and they depend on that market as well. much like a stock that you can look at and say this looks like it has good prospects. its price can be determined not on how it's doing, but its guidance going forward, how many times do we see that in company earnings reports where the earnings beat but the forward guidance, liked to, does not. procter & gamble comes to behind today beating revenue and earnings estimates but worrying wall street because its guidance going forward was iffy so again i don't want to lecture the

president on capitalism 101, and what drives this market but i do think it's fair to point this out. as we have when prior administrations when they kind of play loose with the facts. we've got a lot more coming up here and just get their read on all of this , brian brenberg is with us, the kings college business and economics professor , i say many many times if i had professors like him i would have done much better than i'm doing right now. >> [laughter] neil: also mitch roschelle if i had people like him on shows in the past who could explain in english, well i'd have much more popular shows. anyway, that's neither here nor there. enough about me. let's get back to what the president is saying right now, about tapping the reserve. mitch? this notion that we're going to go hit the reserve again, do we need to do that? >> i don't think so. first of all the first word in spr is strategic and not p for political, and this is clearly a political move in my view, just 20-some odd days

before the mid-terms, and you're entry to the segment neil was all fact and never let facts get in the way of a good story because that's what the president did was really telling a story. neil: it be one thing if you were consistent so say all right , i can't always take credit when it goes my way, but i can certainly shift blame and that's natural for a politician to do. i just wonder in this case whether it confuses folks. >> it does and first of all when you weaponize profits, and you nailed it so let's remember, when president trump was looking on about refilling the strategic petroleum reserve, he was talking about $24 a barrel. neil: right. >> if you want to talk about profits we sold spr at $90 a barrel when we would have paid $24 a barrel and he got pushback from democrats when he was talking about doing that, but and then the price at the pump thing? i spoke to two local businesses. one is a home oil business and the other is first generation american who owns a gas station. the first generation guy who owns a gas station has been struggling throughout this

entire period because of the volatility in the price. he doesn't know what he's going to lock in at to have price at the pump that makes sense. he can't lower the price. the oil company when it got to $140 a barrel, they had to buy futures contracts for this winter and they were paying upwards of $6 a gallon for diesel. neil: that's an excellent point. >> what happens when it drops down and the market is now $5. they will lose $1 a gallon because they have to make their customers happy, so you can't weaponize profits as you said in the good times and then not leave a reserve for the bad times. neil: well there was no choir out for the industry when it was dealing with zero dollar, remember under that and that's neither here nor there, but i do wonder when you talk to young people and students and there's an inherent distrust in oil companies that's just baked in the cake but in this case it's misplaced. >> well look, you talk about whether people are confused by what the president is saying or not. i don't think anybody is confused here. they are looking at what he's saying and they are hearing the

same thing they always hear. number one it's not that bad, okay, and number two blame oil companies. there's your contradiction. which one are you really selling me here? but the selective choosing of data is the real problem here, and it's a problem politically for him because it misses the reality people are living in he can spout all the numbers that he wants to. he can talk about the strategic petroleum reserve and the elimination or the release of barrels, but the guy at home, the guy at home is still sitting there saying i'm staring for gas at 3.85 a gallon and if it's diesel it's over five bucks and you're really not changing that story. neil: and you are taking the credit when it goes down not when it goes up i get that and i understand that but i mean, you've got to look at the reality here. this is something that's traded on the global markets. now i'm just wondering guys if the elixir and the problem solution here for the president might ironically be a global slowdown, that is taken us down from these $100 plus oil days to $85 now and that's just a hiccup

we could go slightly further having nothing to do with the reserve and everything to do with the whole globe. >> if you look at the price coming down and we're watching the president i heard mitch over here chuckling about it, but he said we've been able to bring down prices with these releases, and everybody knows that's not what's happening. everybody is looking around the globe saying economies are slowing down. demand is slowing down and that's bringing down the price of oil. notice the president never talks about refineries either. he thinks there's this mismatch between the price of oil and the price of gas. guess what? five refineries in the u.s. have closed over the past two years. nobody is looking at investing there because they know this administration is so hostile. you want to fix that, mr. president? green light for refineries. neil: that's a very good point because you think about it, mitch, i mean, if you're going to invest tens of billions of dollars, in something you need something better than a couple year rise to show you because they made it very clear and certainly the signal that states like new york and california is that they want to be fossil free from those type of vehicles in the next decade or so, so if

you're going to make a commit the and put that much money upfront and you know what you're pushing is something the administration, the powers that be hate, that's a gamble for you to even try to take advantage of, in an environment where refining capacity is already running at close to 95%. >> so, just politically speaking, you had joe biden and bernie sanders debating one on one and the moderator of the debate asked specifically about the oil & gas industry and he said we're getting out of that business as a country. if you were an investor in oil & gas, you just -- neil: sell. >> if you're a company that has to spend billions of dollars that needs a 20 year horizon you aren't going to invest it. the other day you had congresswoman talib talking to the biggest money center banks in the world that were u.s. based saying asking specific questions, jamie dimon heroically referred to those policies as a road to hell , okay? everybody else in the question was for the audience purposes are you going to continue to

bank the oil & gas industry, because it's evil. when that's the rhetoric that you're hearing if you are in the oil & gas industry we'll takeaway your ability to borrow money from jpmorgan chase or bank of america, or we're going to get out of the industry , why would you invest in those refineries, or why if you're a wildcat driller are you going to take your families fortune and invest in three more pumps in the backyard neil: and if it was in your financial interest to do so, these guys, of course they could do so if it's in their financial interest to do it but right now it's so prohibitive it is not so i guess if the message coming from washington is we don't like your industry, never have, never will, then we would rather get it from the saudis if they are so willing which they aren't , or venezuela or iran, we would rather get it from some of these players then that argument for clean energy all begins to loosen up, even germany and italy and france, all these other countries are finding some fossil fuels alternatives because they are behind the

brick and a hard place. >> and because they are about 20 years ahead of us in terms of experiencing what happens when you go down this road. neil: be all in on everything. >> well, but they went so in on green, they lost the infrastructure they needed for their fossil fuels and as a result, when the world changes, they're in trouble. the president speaks nonsense when he talks about his climate agenda on the one hand and increasing production on the other and everybody knows it , and the people who no it the most are the industry, that he and we really need to invest in exactly to mitch's point and yours they say there is no way we're in if this guy is in office. it's not going to change until leadership says there's a new regime when it comes to an all- in approach, not just a green energy. neil: it doesn't have to be one or the other. charlie gasparino, i mean, as you know we try to skew politics here no one cares what the my opinion is it's pointless , so i have strong opinions on things like food but generally, this other stuff i try not to get into but charlie one thing that was bothering me

is there was a lot of people seizing on the president's remarks and say oh, it is the oil companies sort of corner ing this market, screwing us, gouging us, even when the president threw it out there when hurricane ian hit florida that you better not gouge, as if , they have done countless studies into this over what 40 or 50 years, where not one-time was there any proof, any indication that was going on, but again, just to throw it out there, was enough to get people pause and say oh, what do you make of this? charlie: listen, we have three weeks until the mid-terms? if you look at the polling, it's starting to switch more to economic issues, which is bad for the democrats, inflation, a potentially recession, the stock market being crazy. i will say this , and this kind of tells you something about the biden agenda and how difficult it is to balance. on one hand, he knows, his advisors, i know who they are. they understand the whole notion that the oil industry is essentially fighting with one

hand tied behind its back in terms of drilling, because environmental groups, as you said, are challenging those leases. the biden administration, biden himself, point blank, said he wanted to put out of business the oil industry. they are facing massive regulatory headwinds. he's got to balance that, on top of the fact, he gets that is purely inflationary. so how do you do that political ly? and the only way you can do that is essentially, to create a lie that the oil industry is essentially causing gas prices to remain high, and to spin it that way, and it's actually pretty pathetic but it's the only thing left when you got three weeks left to the mid-term s. i will tell you this. i spent a lot of time with wall street ceo types last night and met with a bunch of them. there wasn't a man or a woman who didn't say that the biden economic policy, particularly as it involves the oil industry, is not absurd. it it it is, these are democrats a lot of them. they are saying all of the incentives are pushed against the oil companies and

they can't believe that the united states of america is begging saudi arabia and venezuela to drill oil. neil: to your point, you know, brian, that's what's at stake here, right? if you're going to argue that we're going to be clean energy and all, and then you look abroad and you see what's going on and you see germany even looking at nuclear, looking at coal, france the same. they're looking at all other options because they are pushed against the wall. it doesn't mean they have lessen ed their commitment to climate change or whether you agree with that or not, but they've had sort of dodge and adjust to the world in which we live. >> why do we want to walk down the path they've walked down? just because their backs against the wall and now they maybe start to do smart things? why do we want to get our back against the wall? we don't have to do that. we can control to a significant degree what's happening in world energy markets if we're smart at home but this administration, charlie, wants to get in --

neil: just ignore him. i'm kidding i'm kidding. charlie: you now you sound like my wife. >> i was going to say, why is it more efficient and more green energy forward to get oil from saudi arabia and venezuela than to drill it here? if you think about it -- neil: we have plenty of it here. charlie: not only that. we're still using the same amount. we still have needs. the needs are being met, not by us. it's being met by overseas. the biden administration, the environmentals make us think if you drill more people will use it more. that's not necessarily the case. we use it to meet demand based on the type of economy we have. we're not, if you drill more that doesn't mean necessarily you're going to use more. all we're doing here, because we're going to use the same -- neil: keep your options open. charlie: all we're doing neil because we need the same amount, basically, is get it from overseas and make the costs higher. that's all we're doing here.

neil: well, again, it keeps going back to this right, mitch, being all in on this but the fact of the matter is we got the dow down about 263 points i don't like to over analyze one-days movement or one minutes movement as you reminded me, mitch and professor at the same time but i am wondering here, the president has been all over the country, at least going to blue states actual had it which i don't know how productive that is but talking about the inflation reduction act is going to yield great results, drug costs come down, let's say that's even true on the drug cost front. that's a small part of overall price inflation going on right now, so i'm just wondering is there something you see that we're missing here or that the president is saying that maybe i'm >> first of all drug costs that is really for seniors. political pandering. neil: be careful how you describe seniors. >> i'm not too far away. neil: brian takes a couple of aspirin, calls it a day. >> got the aar p-card in the mail myself.

the fact that is the con stitt e constituent he is going after. neil: that may work for him. >> inflation is secured for inflation. if you don't have a real way to attack it, all you can do is try to wash out demand. oil prices will come down whether there is less demand for oil to charlie's point because the economy around the world is slowing. what scares me right now emboldening iran and you the world, creating customers for iran because the number one state sponsor of terror. all that has done is take one of the most dangerous countries in the world give them more power, rush is a aside. that scares me. neil: professor, when you talk about this, i always ask they look at the world different, quiet quitters, they're not sure if they want to be part of this

typical work world and they're angry. will that anger persist? >> i actually hope it does. i hope young people get angry and angry fuels thought. be angry do not sin. there is something motivating because of what happens in the world we need to do something. there is too much apathy. nobody is digging in. president says what gas prices are, the president, he must be saying what is correct. dig in. neil: be angry. >> be angry in a way that helps the world get better. neil: what you're saying be a little more italian? >> depending on who i am talking to. >> that be angry, that is a whole different anger issue. neil: charles payne to take you through that. never anger. always well-seasoned and well-mannered. charles, thank you so much. charles: believe me i need all of tha