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You revolution could change the global economic landscape.
A new report by price Waterhouse Coopers finds the shale oil boom could -- two point seven trillion dollars to the global economy.
And cut the price of crude by fifty dollars a barrel.
This is by 2035.
By the way the Energy Information Administration says America is sitting on nearly 24 billion barrels of recoverable shale oil.
So will we be able to cash in on the has done here.
Far more on this one is Stephen short editor of the short report something Stephen you and I have talked extensively about.
It -- do you think that this is a realistic report by PWC.
Well let's just say they sat under this is report that goes out looks into the future 22 years from now.
The only reason why they created twenty year old forecasts is to make astrology look respectable so this is a fast move -- product right now.
That said the report is building on a sound thesis one that we've seen -- cold and the natural gas market.
So ten years ago in natural gas market all the smartest guys in the market were saying hey north America's running out of natural gas.
What happened North American natural gas prices went up to 708090.
Dollars a barrel oil equivalent.
Today ten years later because of the revolution in shale gas.
Natural gas is now below twenty dollars barrel oil equivalent.
So this -- is being built by price Waterhouse is essentially building on this theme that.
We have here in North America in abundance of natural gas and oil sitting beneath our feet.
But let me my comfort while letting the critics partner for a second guess and that is it.
Bill saying you're gonna plot out -- -- you're gonna ship it overseas and it won't even be used here in the last.
Didn't put that is absolutely legitimate argument and certainly -- it we -- natural to be mutual gasoline prices now headed above four dollars a gallon over the next couple of months.
There certainly are going to be cries because the United States is now a net exporter of things like gasoline and diesel fuel.
But we have to keep in mind that if we do you want to see this product ever get to the market the guys who are prospecting for the guys were pulling out of the ground -- -- its market.
They have to be allowed to earn it was legitimate return on their investment there is just so much oil and gas that can -- consumed in this country.
I went I didn't and that's out of my Malcolm that's my next point Steven and end the -- critics will say it will we don't even have the capacity to refine this in the gasoline goodness even effectively lower gasoline prices -- grade we to lower the price of well.
Wonderful but we can't turn that into gasoline to put into our cars.
Look is all this oil.
Well but that's just good so we spent the last couple years -- -- solving one side of the equation and that is the access to cheap product to -- oil.
The stuff you put it into -- refinery.
But you have to keep in -- of refineries nothing but the big fancy tea kettle.
You put the oil -- you boil it and then you rip off didn't do did the -- you turn that into gasoline into diesel fuel.
The problem down the Nazis and why -- gasoline prices are where they are.
Is because we'd have an abundance of oil but we do not how to an abundance of ability to turn that oil and what we need I gasoline so now the next area that we have to address is not the oil that's situation has been addressed accordingly over the past -- -- -- it -- -- It's the dearth of refining capacity which is what is really driving up gasoline prices in this current market.
-- so in just based on the report that its hand in the numbers that are hand is it realistic that this brings oil prices down in this country by fifty box.
It's certainly is potential I cannot put it in no one can really put the number on come on TV and we must do you like that so that I thought it now all we can do it.
It's calculate out and certainly.
The picture from a price standpoint is we are certainly in addition to not be paying more to -- then we wore a generation ago.
And for a commodity that is supposedly scarcity in supply.
With ever increasing demand that it's a pretty great proposition.
For the next generation.
That it it would be a wonderful thing that's what 22 years is not that far away something we -- at the start thinking about Steven chart of the shark report thank you for joining us tonight.
Thank you -- your time.
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