you know weve seen these releases from the strategic petroleum reserve in the past not necessarily on the scale of what the biden administration says that theyre going to do and in the past the effect on commodity prices on oil prices i should say has been i guess to a certain degree kind of muted right yes absolutely this is the first time in the history of the spro where barrels were being leased ostensibly to try to lower gasoline prices the spdr is not designed for that its designed to mitigate the short term disruption to the flow of oil so of course during the iraniraq war during the kuwaiti invasion by saddam hussein the spro worked as it was intended to do getting barrels to the market was not designed to lower prices and therefore its going to have a limited impact in the short term of course we had a large sell off today we could break a hundred dollars get back down to that 90 dollar range but thats essentially where we were in the fall well before we even heard about the troubles in ukraine so the problem here is that it does not address the long term structural deficit in domestic crude oil production that is to say that we are just drawing down our rainy day supplies of oil and thats a short term fix and more importantly its going to discourage future production when were taking barrels out of our inventory and dumping it onto the market so structurally were setting up to see me get to that point because within the message coming from the administration was this unprecedented move as they called it but also a dont you dare make any profits on the back of this oil companies message all they want all oil companies doing how are they responding do you feel in any way theyve got some certainty as to whether they could really start digging well at this point i mean i know mr biden went out of his way and said the big oil companies earned almost 80 billion dollars last year what he failed to say is the year prior during coke they lost 70 billion dollars and yes 70 75 80 billion dollars is a lot of money but lets look at the net profit margin for us for for instance for exxon there had terrific profits but every dollar that came in is profit ninety two cents went out so the company had to invest 92 cents to earn 8 cents keeping in mind that oil and gas is an extremely capital intensive business now you look at something like a credit card company visa only had to invest 50 cents to earn a dollar so these profits that we keep on talking about we just focus in on one side the large number but were not focused on the actual margin and the actual margin for big oil is right in line with every s  p did mean on the s  p 500 for the past 10 years 20 years actually so yes they are profits but no theyre theyre theyre not above and beyond and theyre certainly not windfalls why would it take to sort of get these or the us domestic producers maybe willing to invest to drill more i mean do you need further rhetoric from the administration what would that look like yeah i mean the rhetoric would be nice nice a positive rhetoric not calling profiteers a modern day rock robber barons right but to embrace them but the only mention that weve had yet got no mention of domestic oil and gas production in the state of the union address essentially have been telling clients that we would rather talk to terrorists than texans trying to woo iran back into the market trying to woo venezuela so forth so yes that would be one step the other step is to weve raised the cost of permits so yes we have these leases but you have to get the permits for four and keeping in mind that the lease economics we dont necessarily know if theres oil and gas on that lease again that comes with a tremendous amount of investment so when we look what happened last year at the beginning of the summer you know everyone thought covid was over and then since then weve just gotten a greek alphabet soup of different variants with pending consumption declines going into the future so this is an industry that took it on the chin during covid when oil prices went to minus 40 dollars a barrel and love commodities are boom with bust markets you know the booms to get you through the busts and right now theyre worried about that next bust so they are investing accordingly