This transcript is automatically generated
Texas shale as you know something has become a colossal new source of energy when the largest mining company in the world invest billions of dollars and it.
BHP Billiton bought twenty billion dollars worth of shale assets.
Just last year and many of them.
-- right here in Texas.
The company's aggressive plan to gain dominant foothold in the industry is expected to create.
Hundreds of jobs and joining me is the Houston energy magnate tasked with leading that charge Mike -- Is the chief executive of BHP Billiton petroleum and he's here and a Fox Business exclusive might.
Thanks so much for joining that was equipped switch into that law will have gotten very -- Kerry Smith we're fashion period -- that's right.
-- -- and there's an energy revolution going on right now in this country that's that's going to be the biggest thing.
In most of our lifetimes.
May be the biggest thing in the United States in the last fifty years the chance for us to have hydrocarbons that are abundant.
-- for decades and decades to come at a moderate products and in a way where we're.
Clearly it's all being done -- at home so we're very sad about that in the citizens of this great country gonna be the beneficiaries of.
You know I I'd I'd -- energy for a long time and I was amazed to see the transformation happen and the price of natural gas just dropped like a rock.
As a result and I wonder.
Did it drop too far too fast because I'm told anecdotally that there's a lot of wells that have been drilled and are just sitting there right next the price so low is -- a problem.
Well there are number of factors there we clearly had the fourth or fifth warmest winter that we've ever had -- started states last year.
So when that happened and we didn't pull gas out of storage which is what you do during the winter.
Than than gasoline -- competition occurs and prices came down.
But we're very bullish -- commodity for the long term.
Clearly it makes the United States more self sufficient and a number ways it's cleaner.
It's gonna be abundant it's gonna be used for power's going to be used ultimately for transportation.
So we don't really focus on any near term thing -- this -- -- thirty to fifty year horizon and that's really the outlook we want him.
Terms of price are you concerned about regulation I mean we were talking about that in the last segment as well with -- and and there have been a lot of different studies out there's this year that say the regulatory burden could increase by billions just in the next year.
You know we operate both in the deep water all over the world this command clearly when you're out there -- 4005000.
Feet of water.
-- to 30000 feet the regulatory environment is something that we're very used to.
All we asked for or things that are that are good force that helped the common citizen have more assurance.
That -- calls us a clean and -- the playing field.
And they will about -- that.
Obviously there are things that are not in that in that bank where they don't help us.
But the things that we -- you help -- we've not afraid of the regulation at all clearly we wanna work with the government should make sure -- right.
Where do you see the price of natural gas and oil in the near term -- -- approach on the spot -- make some predictions well or was a globally traded commodity.
And as you know what happens in -- -- part of the world can have a -- influential -- but this is really a global balance of supply and demand and work.
We've you know we've is cycled over time -- always cycle right gas in the in the near term of course the recount is declining here in the US it's sold in the United States.
But the petrochemical industry manufacturing.
-- -- save power all these things supplies gonna grow this is the largest market in the world so.
Something what we're gonna see -- gradually declines are gradually in plan over the next few years and and and work its way back to back up to 510.
I'll don't know I think we're talking about somewhere in the -- -- dollar running again if that were to occur.
In the producers are happy citizens -- -- because everybody's power -- going to be moderate.
The government will be pleased that it works for everybody some hopefully that's that's where we'll we'll end up.
It and you just -- twenty billion in shale assets last year I mean obviously you're putting a lot of money on the line you really believe and that's all -- -- that we now have eleven billion barrels of resources in the Korean.
This is real we have.
We -- 45 rigs working right now it's not speak all across the United States in big giant fields and every every -- has how to -- to it.
They'll run -- 80% or 85% of our -- -- drilling report.
Nothing -- because of process right but that technology's there the activity -- -- -- clearly yes we're very confident once again thirty to fifty years so.
So what you gotta have it right the next ninety days dad I mean and that is a big investment and oil where do you see the price of oil going to mean besides just this week.
You know a pretty significant -- and some people are wondering if that's here to -- be I'm sure.
Those blips -- -- short term and you're you're there they are they are they really are but but when you drop down say below eighty in the seventies then things start to.
Work a little differently on the supply side anything get above a hundred as you know people -- back in all on the demand side so.
If I were to say long term miserably -- but none of us know we're prepared to deal with I don't know on -- daily -- yeah.
Here in Houston I mean obviously oil has a big impact on the economy energy -- in the world in -- is it is without question.
You know would you ever have concerned about.
Overproduction -- -- so much demand if people coming in -- you know net migration into the city as opposed out you look at what's -- in places like North Dakota you know where you see all of these strange extra now these as a result of all the drilling that's going on well.
It's funny you should say that our men and women working in the field we're gonna give them a place to stay there are certain parts of that in in Texas.
Where you've got to get a hotel room three years in advance -- -- yeah I did you know I don't.
Yeah but but but no I think in the long term the infrastructure will follow.
Clearly we're doing things that are good for the for not only us but the details that we live in our our employees live in these places we.
We we support in the hospitals schools -- education is all part of the fabric of the business.
In this industry is one of the kindest and most benevolent industries in the world and it gives back every day.
-- air thanks so much for coming -- we appreciate your time a lot of fine thank you very much.