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The Schork Report Editor Stephen Schork on the political obstacles to increasing U.S. oil production.
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-- threatening his reelection chances President Obama setting out.
On a four state tour today about his plan to make US less dependent on foreign oil but our next guest says it's those very policies that are standing in the way Stephen short is the editor of the short report good to see -- -- so the president first of all let's just talk about.
Specifics the president says that the United States including -- of course.
In the United States we only have 2%.
Of the oil reserves in the world and therefore we shouldn't.
Think that our oil is gonna do much to change the price of -- is that is that true.
Well let let's just look at -- Let's just note -- refuting the numbers to just go ahead without logic in just identifying OK the -- there but we're saying it's not enough oil so why even bother bringing it she'd be table.
Okay in the Bakken reserve fifteen years ago there was telling us US Geological Survey that there was 150 million barrels of oil recoverable.
Under the state of North Dakota and Montana.
Fifteen years later that number has been up seeing three point 75 billion barrels.
Why because the prices got high -- -- the technology has gotten there are.
So we are now able to take up more barrels from -- and and again the state north -- North Dakota is producing more oil in the country Ecuador today in Ecuador it is an OPEC member.
So to sit there and this is unfortunate stance that the president is taking to suggest that the United States has limited resources.
We have tremendous resource is if you allow the market to respond to price -- get these barrels -- in I don't oil or natural gas to the market so it is the wrong approach.
That we are taking at this point.
Okay and then on the flip side of that Ken Salazar as secretary of the interior who is traveling with the president today it was early it was on FBN earlier today as well sort of saying the opposite that they're encouraging all the drilling they -- Let me play for you what he had to say nasty to react to the other side.
Let's -- for.
But there are 7000 permits that are sitting idle and not companies happens we have fifty million acres of labs that have been leased out.
To oil and gas companies both farmland as -- -- the -- And so the attack that somehow we are not making public funds available for oil and gas production to simply false attack.
True or not true.
Well certainly this administration from day one chose to take a very belligerent stance against the oil and gas industry.
So yes but it is is specious argument that the secretary is making at this point.
A lot of the production that this White House in crude all that is that this White House is now taking credit for.
Dot -- in those scenes.
With or so more than ten years ago and we are now today reaping the benefits that this -- if we wanna grade this administration upped its stance towards the oil and gas industry.
We got this -- where production is ten years -- to be able to draw.
Positive conclusion.
As to what this -- has done to address the needs.
Of this country's energy needs promote liquids standpoint.
OK let me just go through a list of what we have in abundance here in the United -- -- natural gas we know now that we have -- than we ever thought possible.
Of course the price is low we haven't reap the benefit of that but -- this -- G news just breaking that could change things.
We have and war we have the Keystone Pipeline which would bring oil from Canada down to the gulf.
Offshore drilling of course that could increase but.
We also fracking for shale oil is that the next natural gas there is tremendous hope.
In getting a lot of oil from using similar fracking process.
That we now use -- natural gas right.
But and that and that's a that's -- that's the beauty of of this argument right here because let's just fall back to be natural gas market.
The president of the United States wants the tell us that we don't have or we have a he -- -- -- in this amount of oil to -- -- the market.
Bullets look at natural gas ten years ago.
-- United States and Canada was supposedly running out of natural gas near four prices more than quadrupled inside a few years.
Well if you had oil trading at fifty dollars a barrel you about the gas equivalent trading at 100 dollars a barrel ten years ago and so what -- the market may price high enough it certainly figured out how to get natural gas.
-- the market.
We did it in the form of importation.
LNG from foreign producers as -- investing are are all in our own fracking technology.
So now you get a you get the price high -- you will get the supply.
We did it we show we can do and natural gas no reason why we can't do it and oil's biggest exporter of fuels in the whole world right now is the United States thank you Steve -- -- editor of the short report -- our.
