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East West Petroleum Executive Chairman David Sidoo on the potential growth of oil production in California.
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-- was a big winner under the president but as we enter into the second term have prices plateaued.
Our next guest says of the energy sector will continue to thrive.
With North America only years away from energy independence.
Davidson due east west petroleum corporation executive chairman joins me now on the Fox Business -- -- -- -- over.
Talk about where he sees the next big surge -- -- production.
And what's next for the sector and a -- just to -- up with used say the state of California.
Watch.
Hi Cheryl thanks for having me I'm really excited to be on its share my thoughts if you -- though oil boom that's occurring in the United States.
-- and the chairman of a company called east with petroleum and we've invested in California.
Just recently.
I don't know if your listeners you know of a company called oxy petroleum.
Here.
Company I think got a handle on one of the biggest energy companies in the world -- -- -- in California which makes it an interesting dichotomy big energy oil company California but yes go ahead.
You know these they were looking for about twenty million barrels of foil in 20082009.
They discovered a fuel that.
This protest.
Reserves right now in place of -- 150 million to 200 million barrels.
So they found the largest discovery in thirty years in the United States and a basin called the San Joaquin basin in California who.
Which is very significant for the US.
But he start indignantly you know they fit that California of all the states across those -- have a place I would think not to try to -- would be the city California because.
Environmental regulations.
You don't think that oxy don't think that the sector overall would have to be concerned about that.
I don't think so -- in California I think there's a protocol in place right now and some and some systems in place that governor Jerry -- putting in place right now.
To make sure that most of the oil companies that come in.
Go -- certain stages and protocol takes about eight to nine months to get a permit if you if you drill within your location you drill on a permit -- -- you've been granted.
You're able to drill in California and I think in the United States in general with the economy growing the way it is in the oil industry.
It's -- forcing I think that's gonna happen in the future all throughout the United States these emerging shale plays are ours -- are here to stay.
Okay if you look at the EI AX about California Davis -- -- -- -- a de LA doesn't -- -- that a report says that actually oil production crude production in California has been on of the client.
Since about 2000 and -- and basically the wealth could be tapped -- do you think that that's a possibility argued that -- -- find.
Is is a -- thing a short bets.
Well right now it looks like it's a sure bet there's some Monterey shale that's been spoken -- vote -- -- many many years now.
And -- what they've done is they've drilled deeper targets the -- there it's -- from conventional production early on in the early nineteen hundreds.
And now you're seeing with a deep horizontal drilling that's occurring in in California and across United States the new technology with a 3-D seismic that they have.
-- they're discovering that these oil producing areas have deeper reserves and -- greater reserves and I think it's here to stay in and there's a lot of companies out there.
And we've invested and one at east west called North American only got to the small junior it's there it's got -- a lookalike of the oxy fuels right now to vote 7500 acres.
And they're they're drilling some wells currently as well and they got their permits no problem.
Now I have to say though the minute that I hear new drilling technology.
And horizontal drilling I mean I think about I think about track -- fracking shale rock fracturing which is very controversial.
Is this the same type of technology or is a completely different.
It's completely different it's basically enhancing the 3-D technology over the over the fuels and it's deep horizontal drilling.
They're not doing any fracking here in California right now so the water table.
Anything like that for environment this is not an issue.
There is that there is actually -- necessarily.
Pro fracking.
Documentary that's being featured in New York that should come on on the 28 to January.
It's called the -- nation so some here viewers may when -- look at that tend and look at the pro side of -- Natalie that I believe that document your producers actually been on the this summer to talk about -- talk about -- international oil markets overall look at the -- that you watch international sector.
We have seen.
The president has -- -- we have seen it seems that we're getting more more away from you know dependence on foreign oil.
They get we still do require certain amount coming from the saudis in particular.
What kind of percentage do you think we're gonna be out by say 22 point.
Well the pundits right now on all the people oil industry that I talked to -- 20/20 in the United States may.
Be self sufficient in and not need foreign oil.
You know what are your early on your mentioned in your piece just before that during the Obama administration you had an increase in oil production.
The -- five point 3% which is about six and a half million barrels of production right now that the US is producing.
By the end of 2013 -- be around seven million.
So the US -- now -- importing about eight to eight point three million barrels of oil by 20/20 from all these emerging shale plays from the Ohio Utica.
From the Marcellus Shale the -- heard and the -- and you may see the United States self sufficient energy in the oil sector -- point one.
-- in the railroad sector actually show more of an interest because the transportation issues -- petroleum.
And pipeline.
Nose in the know goes that we've had a particular with keystone their stuff play an interest there it's very instant Davidson -- east west petroleum corporation executive.
Chairman and -- topic today thank you for being here.
Thank you very much for having me --
