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This time I guess about oil right here in the US say that's right believe it or not -- International Energy Agency says the US will become the world's top oil producer.
In five years.
That would be amazing if it's true and what we'll take get there I don't know France's western oil ogre Steven -- battered editor of the sharp report.
Stephen has always welcome back to the show them to be and thank you all this of course is predicated on -- -- and share all.
First of -- do you think that it's realistic and that's pretty quick time horizon.
Absolutely -- and it's just amazing what happens when you are allowed to make prices go high -- -- Just how much supply of a given commodity there is out there.
So with all apologies to Bob Dylan the answer is not blowing in the wind -- -- drill beneath our feet.
Right you know -- You -- us know Clinton did some comparisons on a price basis because.
You know -- thought this was we can out produce Saudi Arabia at some practice I mean in Saudi Arabia -- -- -- sort of sitting right on top of the sand.
We're talking about oil here in the US that is more expensive to get to you.
But that at the same time we don't have to transported because its right here mean it's all about the equation on both sides.
What price do you think oil has to be for this to make sense.
IDs prices right now we're looking at nominal prices are right now in April Brent -- -- use that as the world proxy.
Dollars a barrel does seem to work at these levels.
To this point couldn't see me.
So I so -- there are at this -- there at this juncture.
Could Saudi Arabia though just really open up the tap and -- flood us out of the market I mean it kind of they they produce what there's demand for but that doesn't mean that they can't open up the -- And drive the price lower in order to sort of drive to -- him business.
Well there is indeed a concern with that to keep in -- high prices are not in OPEC and Saudi Arabia's best interest high prices being.
Market president the market simply cannot afford prices for instance that we saw at the beginning of this year hundred.
No question that can drive it lower if they can drive it lower -- -- come out really open up the tap.
In order to drive to increase supply drive the price lower drive the fracking guys out of business.
Indeed but I doubt that's that -- -- you don't you don't wanna make the price you don't want to drive out these supplies being these supplies here in the United States that these technologies are improving the oil that's coming to market now the United States was commercially and available -- -- because the technology in the production techniques did not exist.
That is only go and she would continue to really isn't in saudis best interest to drive the US out of the market yeah it's still going to be -- -- And given the forecast the majority and this is the trend we've been seeing for the past ten years the trend is as far Saudi as far as OPEC is concerned.
Their growth their clients are in Asia could no longer in United's.
Yes I don't care anyway.
What do you know I mean I'm trying to foresee all the speed bumps in the road here I mean the other thing is is what we see with natural gas fracking is that everybody sort of went after it at one time.
So why all of a sudden there was an explosion of natural gas of them on the market and we saw the price -- on the futures market below -- box.
And a lot of -- backed off their drilling because the price went so low so quickly.
Is -- chance of that happening with crude oil.
Well there it is and the analogy to natural gas is quite interesting because what we've seen with natural gas is a fall back in the production of dry natural gas.
We actually see the liquids natural gas the -- propane met in the stuff that is linked to the oil market.
So we still have high natural gas production so we have higher oil prices we try actually bearish natural gas prices because we're still getting wrapped production.
So indeed if you make those prices low enough and you know that's the -- best case scenario isn't it.
Supply in the market lower prices it's a win win for both sides both the consumer.
And vote for industry into the mind what I just got an Ohio.
-- last week I would parts of the Utica shelling eastern Ohio we are on the verge in this country a book manufacturing Renaissance.
All predicated on cheap energy -- a good thing for all of us right.
Now ask -- because this this sounds like maybe and -- clean energy but.
What why gas prices lowered the -- why isn't it cheaper for me to fill up if we have this abundance of resources.
What we have the abundance of resources of the play now in the market is we don't have the resources where we need them.
So -- -- infrastructure play we have a lot of oil sitting up and Bakken up in Canada simply can't get into where it needs to be two refineries in the gulf.
refiner in the east and the West Coast so that is the -- to look for work in the midst of a complete change of to the schematic of the North American energy assets.
To the flow which with the flow not to for crying out loud natural gas.
West Virginia is now exporting natural gas to Canada -- yeah people couldn't higher of.
Flow didn't provided that nuns all all changing its all predicated on infrastructure.
Of them weren't trouble because we don't know what happened any XL pipeline thanks so much for coming out of -- -- talk about that next time thank you have great thanks let's -- now for.
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