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Shell Oil president Marvin Odum explains why he is looking into long-term fuel efficiency.
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-- congress have a simple choice to make.
They can stand with.
The big oil companies -- they're gonna stand with the American people.
Right now the biggest oil companies are raking in record profits.
Profits -- -- go up every time folks.
Pull up into a gas station.
That was President Obama yesterday urging congress to end tax breaks for oil companies the senate did rejected that attempt to end some twenty billion dollars in subsidies.
-- the oil companies feel about.
The president's tough talk earlier today I sat down with Shell Oil president Marvin -- and asked for his thoughts.
I think the question -- need to be asking ourselves in terms of -- as a way is what we really want the end result of being.
We want to dis incentivized additional oil and gas production in the US.
But we actually -- it would set of laws and so that we get more production more jobs more revenue flow into the government.
Because when you add together the royalties that we did that government gets from the oil and gas production.
As -- the income taxes from the company's and the additional jobs.
FedEx is a much bigger number than taking away the the deductions that the talk about.
Do you think though that the administration and other ways is moving in the right direction I know that from the department of interior.
You've got I don't a plan approved for dealing with oil spills up in Alaska.
You have movement to do new seismic surveys next year.
In the Atlantic saved are these the right steps in ministry -- is taking.
That day in -- some really important things happening so I think the fact that.
There were now back to speed shell expect to speed in the Gulf of Mexico in terms of that development activity.
That is it is good the discussion of drilling offshore Alaska I think we're feeling very strong support even some -- from the government now to go do that this summer.
Which we've been waiting for several years -- were very excited about that.
So I think I think it's important to recognize the good things that are happening and and the fact that that that.
Domestic production we'll have many benefits for all of us.
-- think there's any any business including oil and gas business that wouldn't tell you that.
We could do better in terms of our regulatory systems that are permitting processes.
-- gas is a great example of that Alaska is probably the premier example of that we've been working on drilling these first wells for almost five years now.
That's too slow.
But again -- you don't -- -- recognize the fact that it does look like we're giving their this year and that will be good thing for all of.
If there is a serious disruption now you already have exports out of Iran falling ahead of the sanctions and the embargo later this year.
But if there's a serious disruption particularly of oil being shipped through the Strait of Hormuz do you have any sense of how high oil prices could go.
Well its minutes -- -- you'll understand it's very difficult to say.
But we would see potentially a pretty dramatic.
Increase at least -- a short term basis if there was something like the straits of Hormuz being being impacted.
People look at you in the business here and and you're sitting in the middle of this eco marathon that you do with students people say.
Why do you want gas prices Laura -- -- oil prices -- -- the business that area.
All of -- -- -- to -- I think the idea of gas prices being too high for the economy in terms of the as the economic recovery were going through us for for people -- -- -- that the thought that's not good for us you get to why you see demand destruction.
What we'd like to see is -- you know -- -- better balance overall of of that pricing -- both on the economy on individuals.
It's -- sufficient for us to run a business.
The efficiency say what's going on behind me this is where we bring students from all across north and South America together.
To work on innovations around the energy and fuel efficiency.
And I got to get this question a lot why shell interest at a fuel efficiency -- doesn't that mean you sell -- of what you make.
But the truth is we take a very long term view in this business and as we look out over the next 101520.
Years.
What we see is a world -- growing dramatically.
There will consume much much more energy.
And I think the bigger concern for all of us is will there be enough -- -- That was Shell Oil president Marvin notable was some incredible insight on Begin drilling their -- -- start going -- the last McConnell in July I think our barring any well hurdles they get.
