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American Petroleum Institute CEO Jack Gerard and FBN's Eric Bolling weigh in on the surprise release of 60 million barrels of oil from emergency stock...
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But to the oil markets and that surprised released.
Of oil sixty million barrels of it from emergency stockpiles half of that coming from our own strategic petroleum reserve.
And people affiliated with the administration saying that that talks about an oil released like this against sixty million barrels.
-- going on for some time even before.
The reason OPEC meeting and it's meant to offset the disruption from Libya and again give some stability to this economy.
Do my -- agree Jack Gerard is the CEO of the American Petroleum Institute the giant industry organization.
For oil companies and along with him.
Fox Business is very Eric Bolling Jack to you first justified.
Or not.
Well I.
But it's unclear at this point we just heard the news a few minutes ago just like you did.
And while it's important to look at the global energy markets because we're concerned about all the issues you've raised the unemployment rates.
The global supply demand equation but I will say is very important here.
Is the thing they did not say.
Is we can bring you more domestic supply on line here in the United States so clearly from our vantage point.
That was the point that was overlooked in this announcement today about bringing more supply.
To help calm the global fears and concerns.
Eric justified or not consisting come out of nowhere the last time oil was released from -- as PR was during Hurricane Katrina.
And it was even less than what we're releasing right now thirty million -- 21 million back then shortsighted misguided but what what else would you expect from mr.
Obama was done nothing but -- the energy policy straight troops starting by picking Steven Chu as his energy secretary.
These guys have no idea what's going on this is an energy supplied it's meant to be in place.
In the event of massive disruption in oil.
That there is no massive destruction at all we're producing more oil today than we were before Libya started -- forty million barrels day has come off because of Libya and come out.
-- produce one point five million barrels.
The Saudi Arabia has already made up more than that one point five million barrels that Libya is off -- that did it -- had to be pulled off the market.
There's more oil being produced today than prior to any conflict in Libya so don't tell me it's a supply disruption.
Katrina was a supply disruption.
Gulf war could abandoned in started to be a massive slick like Russia.
-- why you have the SPR.
Not because mr.
Obama wants to bring.
And already falling price for oil a little bit lower during an election cycle Jack do you believe this was then politically motivated and it's a way to and is clearly bringing down the price of crude oil if you want to look at we look at it right now.
It's bad -- one dollars a barrel on do you believe this was politically motivated to show up when people fill up their cars in the coming weeks.
Well I think the real -- of the issue here is it's clearly ill timed it doesn't make a lot of sense -- price of crude has been coming down over time.
But more importantly as your other guest -- just mentioned.
We think this is a clear indication that there's even more concerned about the global economy and particularly the domestic economy.
Moving into this election cycle what we can't understand what continues to confuse us.
Is the president has yet to step forward and say you know what we can do more as a nation.
To bring supply on line just not releasing from mr.
-- strategic petroleum reserve.
But that.
Producing our own domestic resource we create hundreds of thousands of new job look.
Jack -- billions of dollars a revenue in -- Houston has been grappling with would help we said it raises issues about the global economy but does it also raised issues about.
Those supply picture out there you didn't live BO clearly us up problem area.
But we had -- the crop from Barclays all last week we talked about potential supply disruptions from Yemen Syria and then worry about Sudan's so does it say something.
About all these different hot spots around the world.
Well I think -- and again tell us it's confusing because what it says as we look at the different hot spots around the world.
What the president has failed to do.
Is to focus on US production he refuses.
To allow US production to go for.
He's been to Brazil he's encourage them to produce some promise to import and he's called on the saudis to produce more to help in this global context.
But he fails to look at the US opportunities which -- job creators.
And revenue -- at a time we -- -- that it doesn't make sense it's it's not an energy policy.
It's a reaction to current challenges.
Jet Jack thank you for being -- -- say thanks to you first CEO the American Petroleum Institute Eric don't you go anywhere because I wanna get your reaction.
Listen it we still got 700 million barrels in the strategic petroleum reserve even after this release and guess what else.
We still plenty of oil to B to be refined it's not a situation we have -- we we were having a problem.
Feeding our refiners with oil we have a lot of other problems -- EPA regulations -- refining kick it could capacity problems.
It's certainly not we need thirty more million barrels on to the world oil market and by the way I was on.
Fox News about an hour and a half ago.
It was 89 dollars a barrel I said this marked -- pricing guarantee it's gonna be higher month knobs all this does it puts a band aid on a hemorrhage.
We still have a problem with foreign oil we don't we want to get off foreign oil not all oil.
Just foreign oil.
We still have that issue yen in.
-- Libya will those are problems but it shouldn't because we have enough oil why -- here in America we don't I -- I know.
But the foreign US that all that oil discussion about where we get our supplies from in the grand scheme of things -- world -- the world market is where oil is priced.
So does it affect the -- market.
Well I was just affect the world market a month from now when these thirty million barrels by the way without 120 million barrels a day so -- is this gonna affect the world oil market it's it's -- it right it's clearly an outside day and a half of what we're releasing here in the US is about a -- and a half -- what we use.
Up yeah.
-- but on that short -- but I want.
Where do you think prices got you think because -- that they -- it.
Why can't Roy indicated there will be other all yeah all three times we've released -- to war emergencies Katrina.
And Iraq -- gulf war.
And the third was still reduction Bill Clinton's reduce it sold twenty million barrels to reduce the deficit all three times your oil prices went down temporarily a week -- -- Within a month they were higher than where they were prior oil doesn't work for the law doesn't stay down -- -- -- the economy is -- but now it says that the -- administration has no idea how to handle the oil problem in America and they really need to start drilling.
Drilling here it's not just a talking point on the right.
It's for real -- -- here we don't care what happens in.
Terrier square -- -- in the price of oil down itself so well that day absolutely well today -- you have a if -- -- -- -- -- guess what I'm a paid double.
Today but guess what tomorrow and in the week after I'm gonna take that money right back via.
In due in multiples I just say OK it's a public share volatile -- yes Ana absolutely it's a it's a guest -- price player right now.
Eric -- Eric Bolling followed the money follow air Boeing Monday Tuesday Wednesday and Friday at 10-Q is there.
On the Fox Business.
