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Gulf Oil CEO Joe Petrowski on why government policies and poor infrastructure are hurting the U.S. energy sector.
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Gasoline prices rising for a 35 straight day three dollars and 78 cents a gallon tonight.
Joining us now the president and CEO of gulf Paltrow for atrocity -- good to have you with us that these this startled look pretty serious we've -- -- the strongest run up in prices in this time period since 2005.
And yet as we look down at the industrial -- that the petroleum production in this country it's never been higher I mean what's going.
Not.
-- a twenty month 21 month high in oil production.
It's a mess of our own making -- There are three things one the infrastructure -- of foreign oil and bring it to where we -- -- which is both because coasts.
Is not there and now there's talk in Washington of wanting to put a crimp on exports.
Which would do nothing but exacerbate the problem we've already laid off all the refinery workers and calls refineries on the East Coast of the West Coast.
If we've now put the ban on oil exports will calls the Gulf Coast which is our only remaining authority -- We have in this country no pipeline east to west talk about presidential leadership.
In the past.
Presidents helped -- -- parents -- the Roosevelt the colonial pipeline built.
And under a 180 days going from Houston to New Jersey.
We've built canals we built railroads.
We've we've barge to -- rivers and put in the -- celebs did we have no infrastructure.
Are we have no infrastructure we've got refineries.
-- they're closing down -- being shut down.
-- -- Part of its the EPA and administration part of it is just.
Were low margins -- margins are backed out tonight you have crude.
Below 93 dollars a barrel but gasoline on the -- nymex is about a 146 dollars a barrel.
Which puts the refinery margins of thirty dollars -- almost 75 cents a gallon.
Also all the biofuel mandate which is a good things for your guys right that's a good thing for you there.
No we don't refined so we just -- ark I'm talking about broadly in terms of the industry itself well it's it's good it's good for -- refiners who have Gulf Coast refineries.
And can use light sweet crude.
What and who can sell their products but the problem is.
It's cheaper to ship your product from Houston to Mexico.
Or Houston and Venezuela -- -- it is.
Houston -- bond -- -- -- Boston here's the thing that that's a fact you can we can't run away from those facts.
-- nobody wants to run away from facts but boy do we want -- understand the because what it we start looking at these production figures were looking at stockpiles I mean they've been -- the highest in thirty.
31 years -- we're looking at refineries closing.
We we keep producing more oil.
We're exporting more petroleum products that we ever -- and my gosh I and the consumers getting kicked in and in the stomach here.
Now we understand cycles everybody's rational about that but then you get the unintended consequence.
Which -- as you just -- -- not -- we got some someone wanting to control exports from an industry that frankly didn't exist two years ago.
That is the petroleum exporting industry.
What are what are we gonna do here to rationalize the market.
Pretty simple.
Let's let's build some infrastructure of commodity markets are really simple.
I don't old boss who once -- -- All the mumbo Jumbo about stochastic indicators and -- market movement in momentum throw it all out these of the commodity business is pretty simple.
You move it from where it is -- -- at eight.
And to do that you need pipelines.
You need railroads.
We can't even move report the -- we produce oil in Houston restore cooperating under the 1920.
Jones act.
That restricts movement -- -- -- to US flag operated and constructed vessels.
That is fifty to sixty cents a gallon -- a product where were produce again.
In the Gulf Coast out of tea what are -- Jacksonville Florida let's get right to -- what are we gonna see prices lower report.
-- who we're -- -- -- listed Capitol Hill exterior but could.
I think you'll see you tomorrow when we have an economic collapse.
On what is your idea I have.
-- -- -- -- -- first look Joseph we gotta -- -- -- their partner and we're gonna we're gonna work very hard here to make sure we don't have that.
As I know you will as well -- I don't do well -- Washington on natural well.
Well you are vulture about a government that is about -- -- -- a little bit about that I wanted -- We're -- one last thing is yeah.
I don't know -- -- what what is particulates gray areas demand is law and international.
Eruptions have been quite -- we have record gasoline prices would know released interruptions in real import demand.
What happens when demand gets better there.
If we do recovered and the economy marriage appreciate -- -- -- thanks for being here and.
