Breaking down the biggest energy myths
How is the election year affecting gas prices?
- Duration 11:54
- Date Apr 12, 2012
How is the election year affecting gas prices?
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Up now about what's going on in -- energy sector bars -- -- president CEO of the American Petroleum Institute with us from DC -- and Jack thanks so much for taking the -- -- -- with us today.
It's the futuristic it's confusing place I think because.
It's a hard thing to trade there's supply demand.
International issues were not do not have a lot at home where do you stand on this whole sector.
Well what we see Tracy -- down -- try to focus on the domestic front obviously we really can't controls events taking place the Middle East.
Can't really control with a Chinese economy is headed of the Indian economy -- some of the emerging nations you've been talking about.
Or try to push for now that the attention of the politicians -- folks on the gas price.
This is say we could be doing a lot more here at home domestically.
To produce domestic energy.
By Americans for Americans.
But the most energy rich nations of the world -- we think that's been overlooked so.
That's our primary focus and the current dynamic -- as you mentioned with a lot of variables moving right now.
But I feel like we're not -- story right because I think the president's come out bunch of times and said that.
You know we're at Citi 5% of our potential or something but he's only really talking about the stuff that's intact he's not talking about the -- -- right.
Well that's right there's a lot of things he's been saying that quite frankly they're misleading -- not telling the whole story.
And I think the unfortunate rise in the price of gasoline has really got the country focused particularly consumer's.
That's one thing to be in a down economy like we've been it is quite another bad injury -- sold here.
And that's what's taking place and I think there's a lot of people looking more closely at what he's saying.
And what he's doing -- right now the actions don't match the words.
He talks about what do you need to produce more we need all the above.
But then he still got 85% of the outer continental shelf off limits -- is down on shore.
Production in the Gulf of Mexico is now 30%.
From where it was projected to be at this time so we've got some serious issues.
I'm hopeful that the voters focused on energy specifically the price of gasoline.
Is gonna force a serious conversation about energy policy and the country.
But he I think you know I think we are talking about raising gasoline and that's only talk about right we talk about the weather gas prices and how much close to buy milk -- -- as it used to be that's an old people talk about but I think that everybody talks about now.
And so -- are talking about and network -- don't seem to be getting -- -- the administration on this.
Well they're they're they're starting to talk more about it they're like -- say the real question is will they take action right I want of those old people spent watching this for some time.
And believe you know if we got -- battle -- let's just take north Dakota's our example.
We've -- -- what's taken place there they're now the third largest oil producer in the United States unemployment about 3%.
A billion dollar surplus and -- state budget.
The average wage for oil and gas job in North Dakota is about 90000 dollars.
That's twice the 45000.
Dollar wage for the average North Dakota.
So we could take that model and North Dakota and literally.
Push it across the entire country.
And were hopeful that the pressure the presence -- now under this increasing gas -- We'll get people's attention to where we'll start making us taking some action.
And not just words and start doing something about.
This could you make a great point you're creating jobs to and you creating really good paying jobs you we enjoy every screen form -- -- -- -- on -- the other day.
He's building homes for those people in North Dakota have because they don't please fill in their -- -- their cards right -- comer for the work that they have no police who lives so there's so much opportunity.
And yet we're not CNN -- Indian minister.
And and North Dakota is just a small snapshot -- -- you look back at the Pennsylvania.
For the last eighteen months we've created 83000.
New jobs in Pennsylvania.
That pay about half again as much as what the average wage -- we have now huge opportunities in Ohio.
Not to mention Texas Louisiana some of the other places we've been producing.
This is a game changer it's a great opportunity for our country.
We've just got to have the political will to get over this partisan rhetoric that's had asked about for thirty years.
And say let's get courageous let's do something for our own country and -- benefit all Americans and all consumers.
But then there's the other side of the story the Green agenda -- -- you can call it right we're we're looking for alternative energies you know we're trying to find -- analogy.
I mean -- combat all that -- that seems to be even more predominant conversation these.
-- well -- what's really unfortunate as well the president focuses exclusively on that conversation.
Frankly that's a misleading conversation.
We need all the energy we -- that we can get the oil and natural gas industry of the single largest investors an alternative and renewable forms of energy.
Were brought against those synergies we just gotta be realistic 62% of all the energy we consume -- the United States is oil and natural gas.
The administration will -- But their own projection -- thirty years from now.
Of our energy will still be oil and natural gas so we need to put the two together.
The president's trying to have a one way or the other that's not a fair discussion.
We need to say let's go produce all the oil I guess we need.
Let's couple that with new alternative forms of energy and the combination of the two will allow us to bring prices down.
Benefit the economy help us with this economic recovery and it's good for the entire public its job creator.
-- billions of dollars in revenue to federal state governments and the timeliness most that makes it more energy secure we can do it right here at home.
With our own resource is with our own people.
Can you talk about natural gas -- you mentioned you know is really cheap right now there's a lot of push back about with fracking and that it's and saves.
And yet -- some studies have shown have been.
Well the studies -- analysis show there's no single incident that's contaminated water as a result of hydraulic fracturing.
So once again there's a lot of rhetoric a lot of scare tactics -- at all by those who fundamentally oppose the production of oil and natural gas.
But -- social new technologies.
That have allowed us to create this game -- this taking place.
Natural gas is a perfect example when it comes to the pricing question.
Look what's happened -- the price of natural gas is down now around two dollars.
It was at fifteen dollars just three or four years ago.
Jobs were leaving this country because of the price of natural gas today there are coming home.
The manufacturing resurgence we're seeing is a direct result of energy specifically.
Natural gas will -- take that Mullen say boy we can learn something here.
We produce our own energy and abundant quantity -- We can bring not only prices down but we have the ability to encourage additional domestic job creating -- activity it's a win win.
We just got to get over the political stalemate.
The other side will also argue that we can -- as much as we want here at home -- -- still gonna need to import oil.
Well what we found is if you add what we can produce here in the United States assuming the present would give us access to it.
Couple that with what we can bring in from Canada.
Add to that renewal bulls and what they're projected growth.
We can become energy self sufficient in North America in twelve years.
Now that once again is another game changer well here to work.
But what -- the president do he rejected the keystone XL pipeline.
It was related to bring -- 700000 barrels a day.
That's a lot of energy -- -- the United States been refined here 20000 jobs associated with it.
That's how you become energy secure you don't do it by rejecting the -- the pipeline.
Tried to -- increase taxes on energy producers.
It's a bit ironic but the president of Brazil was -- -- a week or so ago.
The talk was about how we produced resilient oil so we can bring at the United States.
Well what about US soil.
-- most energy rich nation in the world let's produce our own let's put our people to work let's put downward pressure on prices it's a triple land for us.
And you even just brought up taxes that.
You know are oil and gas companies -- effective tax rate is over 40%.
Whereas -- technology companies out there paying probably under twenty.
And -- for some reason these oil and gas and gas companies are constantly demonized.
Well it's unfortunate this is another one of those head fakes that we see the president taking.
Trying to take away their focus of the conversation on the price of gasoline.
To your point we pay an effective tax rate of 41%.
That's compared to the average standard and -- industrial companies 26%.
We contribute 86 million dollars a day.
To the federal government.
We've not only pay our fair share we pay more than our fair share.
And if we're serious about producing energy there's no economists on the world that will tell you.
The way to encourage energy development is increasing the cost on the energy companies it doesn't make any sense it's driven by ideology.
It's not sound energy policy and that's what we've got to get over.
Weather and -- -- -- the price rightly got gonna come -- pay.
-- whatever and they were paying three dollars 87 cents down -- see.
There -- portion of that that all goes to taxes and anything you could hardly blame the local municipalities below the seats for these high gas prices as well cancer.
Well it's a huge number Tracy a lot of people forget that -- and look at -- costs of a gallon gas about 75.
To 80% of that costs.
Is the direct cost of crude oil.
Now if you look at an average state the United States the gas tax per gallon of gas.
Varies you know thirty to fifty plus cents per gallon.
So you add that crude oil costs with the gas tax -- upwards of 8590%.
Of the total cost of a gallon gasoline.
So if we're serious about bring in those costs down.
Those are the two very able if you look at.
You don't look at those very small margins on the part of refineries in this country unfortunately some of which have close down because they can't compete.
Because -- margins are too small and the added burden of regulations discouraging that sort of activity in the US.
So we need to get serious we need to have a candid conversation.
Let's talk about the real issues -- determine the price of gasoline.
-- some political ideological agenda that suggests that's the fault of others like oil companies yes it's fundamental public policy.
Jack second -- you all day for more information even go to the web say right API dot org.
Absolutely if you go to API dot org talks not only about oil natural gas so -- that -- -- alternative energy.
There's some interactive -- so we can look at what impact it'll have on your state what it -- for job creation and revenue operation.
This a big deal we create another million jobs just in the oil and gas industry.
In the next seven years.
If the president would let us produce America's oil and natural gas.
NV energy dependence.
In twelve that is -- heat that's awesome that's not -- no time at all quite frankly.
Jack is your idea it's a huge CEO president CEO of the American Petroleum Institute year big deals -- thank you -- climb -- the -- -- thank you Tracy advice to visit with.