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Former Shell President John Hofmeister and American Fuels and Petrochemicals President Charles Drevna on how to expand the U.S. energy sector to achie...
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They don't want.
Critical faction meeting on Thursday oil cartels putting the pressure on the saudis to cut output with me tonight is John -- Meister former Shell Oil president Charles Stratton a president.
Of the American fuels and petrochemicals manufacturers gentlemen thanks so much for joining us tonight we appreciate it.
Got a lot of news tonight now we're getting even more from the saudis saying that they want -- increase production at the same time there really battling with Iran.
Who do you think is going to win that Tug of war right now -- and do we need more oil on the market.
I think -- the saudis are doing right now is quite wise.
In the overall economic situation -- -- in other words they're trying to moderate the oil price -- to really hold up other economies around the world.
Which would sink under the weight of higher oil prices and so by increasing production are holding production study -- there's a moderating influence which helps economies everywhere.
Charles you know I I've covered OPEC for more than a decade it's always hard for.
Anyone to believe that OPEC is out there doing something and the saudis are out -- doing something in the best interest of the world economy -- the best interest of consumers do you buy that.
Well I think I think the saudis are doing the best they can as John mentioned I agree with and -- but the question is why are we worried about what OPEC's doing.
Well we have enough natural resources on our own feet and off our shores and up north -- good friends and neighbors Canada.
That we -- -- we can get rid of his bonds that we have with the -- become energy self sufficient.
And really.
Tell the rest of the world that we could be the swing producer.
It isn't really true there -- people always say that and it seems like.
We you know we import half our oil as it is how could we possibly make up that difference is that realistic.
It it must say it is very realistic you look at you look at the statistics what we've seen over the past 45 years -- -- -- to.
As opposed to what the administration of president says about how much oil and natural gas we do have.
We have a treasure treasure trove of natural gas we -- the political will to develop it.
And that's the problem -- Arafat I do and here's the specific plan I would put forward and I've said this in many different venues.
Let's take oil production from six to ten we used to be -- -- we know where it is we can produce ten million barrels a day -- we need government enablers we need the permits -- -- -- access is that fracking that's offshore that's everything through to produce more oil four million barrels more a day number two.
Turn the equivalent of two million barrels of imports into.
Compressed natural gas for trucking.
Number three let's turn natural gas and the methanol and displace another three million barrels a day of natural gas.
For our automobiles we need flex fuel vehicles in order to do that.
We'll have higher mileage vehicles that eliminates two million barrels of imports -- next decade or so.
And if we knew then any imports of owing to the from Canada and Mexico under the North American Free Trade Agreement.
You know it's so hard to sell these things at a time when gas prices are going down and especially when you look back -- you see you know a few months ago we -- -- a huge panic gas prices at the pump.
We're at an all time high for this -- of your suddenly they're down the American consumer feels like.
They're getting host you know that the oil industry is out there rigging the game how -- they've come down so quickly and and why should the American public trust the system given what's happened.
Well you you you have to look most at exactly what causes prices didn't go up and down.
And as world demand and right now you give your previous guests.
You know it it what's going on in Europe what's going on in Asia.
Yeah what what we need to do here is to be as I said before to be energy self sufficient.
To be is that to be the the dominant energy produced from the world that we can be send that message out.
All agree -- John to a point.
On on his -- and an honest 45 point plan.
As long as it's done in a free and open market.
Where we see the problems is where we have government interference trying to trying to pick winners and losers in the marketplace.
Yeah I mean US -- prices drop so quickly yeah.
The reason they were rising as there was a suspicion that the world was actually growing.
There was desperation.
That the US was gonna have 3% growth.
I predicted five dollar gasoline I remembered that I is an important and a failure and a half -- all premised on 3% growth -- because the US has failed to come to grips with an energy strategy and we're so reliant on imports.
Even though domestic production has increased a little we're still totally reliant on imports to get through the day.
And if we have 3% growth and reliant on imports and China's reliant on imports and then the world can't produce enough oil and so we're going right back the high prices assumes we turn this economy around unless we do is Charles -- saying.
Go after the domestic resources.
So Americans are supposedly -- we had more domestic resources then it would just.
We would do less volatility cover all that big oil wouldn't take that money and just put in their pockets that's what they're always suspicious that up well first of all distribution muscle big oil -- big go I I'm I'm sitting -- that I think this is what my audience our parents.
-- go through the audience that that did big oil it is are those state owned oil companies that John reference.
Big oil the United States is a nine point two million people that -- that we that employ -- -- to your question now yes.
We as a as a nation we don't have an energy policy.
We never did we we managed from crisis to crisis and when and when the prices go up as but as for the reasons John outlined.
There's a hue and cry when they come back on for the same reasons that John outline.
Oh happy days are here again let's let's move on what we need is his stability in the marketplace and and and what we need is the government here again your previous guess that it.
Free market government get out of the way appropriate safeguards -- once thing to shouldn't be appropriate safeguards.
Let the free enterprise system work and we can -- we conceive.
Get this country back on its -- again get the economy going get people back to work.
I think we can conclude every segment with that so we'll leave it there free free market.
Charles Stratton and John -- -- thanks to both of you for joining us we appreciate it.
