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Rising tensions in the Middle East have helped send oil to its highest level in one month just yesterday but -- next guest says let the big oil story is taking place in the US.
He credits the almost one million barrel increase in US oil production over the past year.
To help calm the markets fears of a supply disruptions from the troubled Middle East joining me now Jack could -- -- CEO and president of the American.
Petroleum institute Jack thanks for Aurora joining us today we spoke to a -- -- -- we got plenty of oil into as far as inventories go yes we're always concerned about what's going on in the Middle East but over role -- this we see a huge pick up in the global economy.
Oil prices -- stayed down do you agree.
Well I think for the -- Perspective we're seeing two things right now it's kind of a good news bad news story.
The good news is we're -- a little bit upward pressures the economy begins to recover and we know demand will go up somewhat.
The bad news is the point you just made actually that is in -- the Middle East specifically in Syria.
And some of the unknowns there what -- eleven bring for the future but right now the positive story as -- were producing more on the US.
We can't produce more and we should focus on that so these other variables such as unrest in the Middle East become less and less important to us in the future.
Yet you mentioned Syria Syria not really a player as far as pumping out the oil but -- coastal region -- is is the most important up provide is a Saudi Arabia.
Well clearly Saudi has always been a major player will continue to be a major player.
But other dynamics in the Middle East such as relationships with the wrong.
That's what I think has the markets a little bit concerned right now to wonder will this spread more.
Now that the -- Israelis have taken some action.
What does that mean over the next week or two of the next month will there be more unrest.
Or will will we get -- calm down to where we get back to a true or supply and demand market I mean Jackie one of these -- say that we what can be.
You know oil sufficient very soon here were pumping out a lot of oil have a lot of resource is here.
I mean -- the day that we don't even care what's happening in the Middle East with regard to oil production moved closer than we think.
Well I think will always care about the Middle East for a number of geopolitical considerations however.
I think the energy equation can become less important.
As we move ourselves away from reliance on some of those parts of the world.
And more and more on our own energy security by producing it here domestically.
The international energy.
They thought we could surpass Saudi Arabia.
In the production of oil in seven short years.
When that begins to happen you'll see those geo political dynamics begin to shift considerably.
And while the Middle East will always be important -- United States.
The energy equation becomes less important.
And therefore were able to deal with that part of the world more on a pure.
Foreign affairs standpoint with less consideration about energy could we live right now without OPEC's oil we get most of -- oil from Canada -- anyway.
Well Canada's our number one producer our number one import partner lot of people don't realize that.
There's a couple other issues out there that is demonstrate how important policy is in this whole consideration.
And that is a keystone XL pipeline.
It's estimated we could double our relationship with Canada -- Canadian imports.
In the next few years but the -- keystone XL pipeline.
His critically important that to bring some of that oil sand down oilsands down to the Gulf of Mexico.
To there be refined and consume so.
Policy matters this whole equation but we can become energy secure here in North America if will keep our focus here.
And realize we have abundant resource right here at home.
And quickly Jack that's great but do we also or lack as far as a refinery system are being told time and time again -- we're going to be able to do what you're talking about we really need to upgrade our refining system.
Bulletin if you look at the US refinery capacity to today not always a state of the art on a worldwide basis but we have adequate capacity.
In fact today we're actually exporting a lot of refined product.
We could open those markets up and be more of a global player.
Thus putting downward pressure on prices cool but we need to produce a domestically.
We continue to invest expand upgrade that refinery capacity.
But we have plenty for the current time.
But it's really looking at the future to make us the epicenter of energy and deal with this on a global scale.
And stuff thank you so much for your inside Q that's Jack -- out with -- API Jack thank you.
Thank you if.
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