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“The Seven’s Report” Editor Tom Essaye on the potential for growth of the U.S. energy sector.
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On the back the money in the energy and information administration recently made a prediction that grabbed headlines around the world the United States it said.
Will become the world's -- oil producer by the end of this decade 2000 planning.
But they EI EA is taking serious heat for that bold call the association for the study.
Of peak oil and gas -- the CIA must revise its prediction.
Claiming it creates a misleading picture of US energy supplies to be CIA completely overshoot or will it prove spot on.
Thomas editor for the sevens report is here to help clear this up thank you for joining us.
They weren't alone -- that the IEA actually said that the United States is on track to do this but.
Where are they getting it wrong are they confusing.
US energy overall -- just oil lore they making some other -- on their logic.
I -- that's exactly right so it is feasible by the end of this decade that the United States could be the world's largest energy producer.
But not the world's largest oil producer and and and you can see that to -- the numbers.
Saudi Arabia produces about ten million barrels per day we produce about six point five million barrels today certainly our energy production will grow.
But not by that much where the story is on this is -- natural gas -- that's the area of growth in the United States and and if you throw that into the mix.
Then yes from a barrel energy perspective we could be the the largest producer in the world by 20/20 so so this is.
Imported 200 just point out everybody the IEA is not the EI AB IA's international energy administration that they can actually got this all started.
We -- their predictions about oil production but you know what is the outlook.
On on this for the United States we are pumping more oil -- -- -- we overtake Saudi -- -- -- that astronomical amount of oil we would have to get or is it harder to get it from where we're getting it now.
Well.
Certainly there's a big gap to to fail.
But we have the resources here United States -- part of the reason that we don't produce as much energy as we should.
It's the same problem we have and so many other facets of our economy its government its regulation.
I'm trying get a drilling permit.
You know try and and and go through in drill shale now you know you're seeing sort of popular opinion push back on shale and tight oil which is the growth industry in the energy.
Space right now I mean there's a movie coming out next month about the evil -- right.
Yeah exactly the evil energy executives who -- -- and I mean go Iraq.
That's exactly right so you're seeing some push back here if they would loosen the -- little -- that we produce a lot more energy absolutely.
I think a lot of us are intrigued by the ability in this country especially those of us who grew up in the seventies and eighties with oil being such a problem.
Actually like the idea of the United States being energy independent.
When you talk about that movie and fracking certainly natural gas is gonna play an important role in this country's future it has the potential -- making people wealthy.
And putting people to work in parts of the country where they are allowing fracking.
But a recent government report said that the you know the environmental impact of this really isn't known just yet so should we be rushing headlong into this -- should we may be.
To slow down a -- I mean it's not gonna go anywhere the gas will always be there.
That's true I guess it's a question of how expensive the people want their energy to be if people don't mind it being much more expensive -- -- recession and hey let's stop and make sure that there is is minimal environmental -- impact this possible.
But the truth of the matter is if it's in the country's national interest.
To become energy independent now whether now where the biggest producer or not doesn't really matter what we should try and do is become energy independent.
Because that a lot of things for this country get a lot easier so.
We of course have to worry about the environmental impact but at the same time that we have to look at this energy is a blessing as a resource and we need to exploit it.
So last question for you you -- if I'm an investor who had I play this because the price of energy just -- we're gonna produce more I can't imagine it would come down you have such demand from Asia.
As those economies grow Brazil as those economies grow in South America.
I would imagine that there's got to be way to make some money on that's.
Absolutely Adam yeah.
The that the big story is again natural gas and the transportation.
Of natural gas you could see the United States overtake Russian become the largest natural gas exporter.
In 1015.
Years so where you want to address the true -- great trend in this.
Is -- natural gas transportation so liquid LNG tankers.
Natural gas gathering facilities that's the future.
Of energy in this country -- SA thank you for joining us right now we certainly.
Have -- -- lock on hot air coming out of Washington natural gas.
Fifteen years down the road is Thomas saying that's a potential force thank you very much sir.
It's time now.
