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Okay we'll be energy industries the driving force of Houston's economy more than 3000 companies call -- home but.
How -- new regulations affect the sector's future let's go back to Melissa Francis.
On assignment in he -- less.
Eight -- so much -- yet is a beautiful day here in Houston I'm joined by our -- the president of Delbert associates and Lori was just talking about the fact.
That we have new regulation.
Increased regulation without question coming to the energy sector specifically for -- Which has been such -- -- to Texas and to really -- energy infrastructure in the whole country.
Do you think more regulation is coming and what's the impact.
Well absolutely there's more regulation coming vote for the state level and the federal level.
The impact is gonna be some more specific guidelines and rules oversight of the federal level -- sort of said -- an umbrella amounts more specifically administered at the state levels.
Fracking is taking place in places that aren't used to drilling like Ohio -- the state laws are still state regulations are still catching up.
Yeah a lot of people so that they say it's relatively unregulated of this happening in places they -- worried about it in the past but people like John Donovan associates estimate.
That we could see one point five billion dollars an added -- next year as a result of more regulation do you think that's I mean that's -- -- everything that's right.
Well I think the numbers -- I think the order of magnitude is probably high I think that more regulation cost more money and I'll have an impact it'll drive up the cost.
-- to find oil and natural gas but the same time Melissa if you don't have regulation.
Then unsafe practices could take hold and that could have a greater impact but we've seen in other places that.
The energy market we've seen the price of natural gas plummet as a result of all this -- it's been a lot of cheap energy for a lot of Americans out there but at the same time.
We and we were talking about this in the break there are a lot of -- that wells that have been drilled.
And art are not being used right now as a result of these lower prices -- think that's why we're seeing that in how big a deal as it.
Well I think that's one of the reasons why you're seeing it production is still very high of both oil and natural gas.
You know the results of this tremendous new resource is chief creative would shale and tracking.
Prices are down and that's causing supply to be down as well for the drilling wells -- -- not necessarily completing them.
Break they're not completed I'm hearing from a lot of people anecdotally that there was this big push and now all of a sudden a lot of these wells are sitting -- that true.
Who has been a decrease in the capital spending.
And also some of these wells -- frontier areas we don't have pipelines so they're waiting.
For infrastructure to catch up with the exploratory drilling -- to.
Huge geographic area that's been open.
Natural gas mileage -- average Skinner on later on money at 5 PM eastern and we'll ask you about that question but before I let you go because of course he's the pipeline king and you're talking about infrastructure.
I want to ask about this plummet in oil prices that we have seen here 7% in the past three sessions.
Do you think that there is but a fundamental breakdown of the price of oil here we're going lower or.
Is this just a temporary reprieve.
We think it's just a temporary repeat gas oil prices are pushing higher -- get glitches in the markets just because of the ebb and the flow of both.
Buying and selling and electronic trading.
And and the range between -- hundred dollars and 85 dollars and think is well established I think we're gonna stay in their throughout the -- time.
But this is probably look at that chart we've got on the screen right -- you could see it is a big move downwards and you know traders have said that they think the economy is not getting better -- that there is that the saudis have said that they have as much oil as they can possibly put on the market.
That everything that's going on the Middle East has already been priced in I mean I've heard such arguments for why -- gonna stay where it is at the same time -- mean the Fed is printing money.
There's all kinds of other reasons for to go up so what do you think takes the cake at the end of the day what -- price target for the rest of the year.
-- for the -- here we think -- prices that under a hundred dollars and above 85 dollars and that you're seeing there range I think you're seeing.
Volatility in the -- and investment honestly is electronic noise of buyers and sellers.
OK all right thank you so much for joining us here on the beautiful campus of rice university of course we are open for business.
In Houston Texas where the economy is absolutely booming.
It is grown more than 8% in 2011 we wanted to figure out what is in the secret sauce and what is it.
That is making this economy grows so much faster than address the country in tonight coming up.
At 5 PM on money with Melissa Francis.
We have senator Kay Bailey Hutchinson is joining us.
She's gonna talk about the regulatory environment and the political environment that fosters this kind of business growth.
We're an average tenure as CEO Peter Morgan.
-- -- -- the last -- I've seen him on television that's a pretty good gets you have to tune in to see which he has to say about oil and gas prices going ahead -- back to --
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