This transcript is automatically generated
And a half minutes -- the business that's -- gas and oil.
Senator chuck -- -- gets his wish.
Saudi Arabia has promised to boost production if Iran takes its oil off the market she -- there's nothing about boosting US drilling.
But here's what he said on Capitol Hill about the soundness business.
Bottom line this announcements of good announcement.
Open markets will pleaded I hope the saudis will repeat it.
And I hope as a result the price of oil will come down it is the best news on a very bad front.
Tell us what -- said best news on a very bad -- so why isn't the price of oil falling set back below a hundred dollars a barrel because it's not it's around a 106 as we speak.
Let's bring in and in the towel from a look Powell oil associates in Houston and they.
If the saudis are gonna replace any lost oil from Iran -- why isn't oil below a hundred.
Well we've heard this announcement from the saudis over the last couple of months and the fact is is that words slowly seeing a decline -- I -- and supplies reaching the market.
And saudis have increased their production but it hasn't been quite -- not.
We just saw statistics from the International Energy Agency showing that world oil production in February.
Actually declined in spite of an increase from Saudi Arabia.
All right now you follow the oil market closely you are in Houston.
I wanna know about drilling and production in the gulf because I think it is that's the Mexican Gulf of Mexico I think you've got some new numbers fully one -- -- Well it's quite astounding to see that since September of 2009 Gulf of Mexico production is actually off 30%.
Which translates into a half a million barrels a day.
How while the administration is touted higher USA production where that's taking place is actually in Texas -- North Dakota.
And you can sum that up in to two words -- oil.
Now did you I want to repeat that 30%.
On production of oil from the gulf between September 09 and December of 2011.
There's a hot numbers down -- 30% to oil production correct.
And that's exactly right and those -- from the energy information administration and the decline is really quite astounding yes it is that -- present is a big drop and in -- -- right -- in Houston thanks so much -- -- appreciate -- being with us trying to.