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Institute for 21st Century Energy’s Karen Harbert on the potential growth of the U.S. energy sector.
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All right now to our top story a new report says the US could surpass Saudi Arabian oil production right 20/20.
And on top of that -- energy could create one point three million jobs by -- -- do we need that.
So will -- save the US economy to drill down on in his -- harbored.
President and CEO of the US Chamber's institute for 21 century energy which cosponsored the report.
-- and thanks so much for coming on the show.
Were you surprised by the outcome -- -- -- is this pretty much you put the study together -- you suspected this is what was going on.
Well we have suspected that and we know that it was huge what we didn't know is that it was so big and now we've got the numbers to prove it.
You know the American economy's been looking for some good news a way to get off of the huge deficits we have fall off the fiscal -- It's right here underneath our feet vast oil reserve vast gas reserves and how we need to put it to work for the economy.
Now I'd put this in perspective for viewers because I've been to Saudi Arabia and the oil there is -- it's basically sitting out in the sand and oil that we're talking about getting here.
Is a lot harder and more expensive to get -- I mean it's great that we have the technology -- do it but it's a lot more expensive right.
Well it's more expensive but you get a lot more out of it because it is the most advanced technology.
You know it's no surprise that where a lot of this is happening in a place like North Dakota North Dakota has the lowest unemployment rate in the whole united six.
And that's because they're being able to put their economy to work based on oil.
So yes it is sold -- more expensive but because of the technology you get a lot more molecules out for the money put again.
But it's more expensive I mean Saudi Arabia can just flood the market with cheaper oil in order to -- take -- that business.
Well we have to be careful it's not a rigged by -- not apples to apples while the technology might be more expensive we're getting out more product for every dollar were putting again.
So it's actually a much better understand how -- how is that the case.
Because when you the way you use this technology is when you put in the -- -- able to get a lot more the product out rather than conventional drilling which is what they're doing in Saudi Arabia.
I'm not sure about that we might have to examine -- at another time but.
What your question -- -- -- get this unconventional -- than convention also in Saudi Arabia they're doing it the way we've done for hundreds of years.
This technology we're being able to use it -- -- to get a whole lot more out now.
And.
OK but I mean there are able to pump oil very quickly gets very cheap -- close to the surface I don't understand why that's not.
You know easier to bring to market -- the more expensive well I mean you're you you're using -- your fracking.
It's more expensive to get it -- of the end of the day it's more expensive to produce it.
But not on a molecule to molecule basis and we look at that and not to get too technical but because were able to get more for every dollar we put in.
It ends up being a very good economical investment now that being said.
In all prices are still very very high.
So -- is you know more affordable I guess for Saudi Arabia to put in flood more on the market yeah but the reality is is that demand is going up so they're flooding the Asian market that we need to start looking out for ourselves here in North America.
But prices of the Pope you know are double what they -- in 2000 her.
Well let's not forget energy demand is going up every day while we might be the biggest natural get biggest energy producer were no longer the biggest energy and humor.
Asia it is so we really have to be looking at the global market and the more we can produce here at home the more money stays at home the more jobs are created at home.
And the more manufacturing habits at home and that's good for the economy that's what will help the Americans consumer.
Not just the price at the pump well what do you think would bring down the price -- -- problem.
Well we have to look at global supply demand and as we look at it going out for the next decade it's going to be very very tight.
But every molecule we bring on the market.
That money stays here and that's what will improve our economy helpless not fall off this fiscal cliff.
And quite frankly create the jobs that we need and that's the type of economic growth we really need to be focusing on.
We're not gonna hugely impact the price of gasoline the -- just by producing oil here at home.
But we will be able to weather those you know inevitable volatility that we see if Iran closes the straits of Hormuz.
It will be much better for America for producing more oil at home and what do you do to -- the environmental backlash against this type of drilling.
While I think the truth matters here according to our own Environmental Protection Agency in the head of -- Sheila Jackson she said.
You know what never has there ever been a case of -- water contamination because of this so I take the government at its word.
We've been regulating at the state level and it's worked pretty well now that being said industry does need to be held to very high standards.
And that will happen and that should happen in technology will continue to improve.
Our ability use this resource but let's not be led down the path of Hollywood mythology.
And movies that are trying to sell us OK not the truth Karen thanks so much for coming on.
