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The fact of the matter is we use 20% of the world vote.
-- even if we drill every square inch of this country we still only have two or three or 4% of the world's known oil reserves.
May -- while the president is fixated on the oil reserves that we don't have any report.
By the International Energy Agency says the US is setting up an oil supply shock.
That will completely change the global market could beat of a game changer for you -- -- for your money with me now our energy experts.
-- -- Report and David credit from The Heritage Foundation always a pleasure have both of you on the show Stephen let me start with you.
I mean this port is a huge deal it's based on new technology all the fracking -- the shale around the country and saying that 50% of the growth.
It oil supply.
In the next six years would come from North America is that a big deal.
It's an absolutely a big deal and unfortunately for the president he's once again demonstrating his disregard.
For the ability of the market the sol high prices.
If the president just looked at what his own US Geological Survey said the other week.
The upper plains of the United States now sits on the twentieth largest oil reserves in the world.
For crying out loud the state of North Dakota alone produces more oil on a daily basis.
Then to OPEC members yeah therefore now we have the executive director.
The -- -- telling us that we are talking in terms of North American productions -- to provide us.
AD I national -- game changer are absolutely so now imagine we had a president who actually didn't think he was smarter than the collective knowledge of it this is the heart stopping the market -- -- he's been trying to do it and any -- ironic that under this president we're gonna have this tremendous oil broom and David -- -- it makes me wonder.
Should everyone -- thinking about going out buying electric -- not do it because now we're gonna have this much more oil I mean how big of a game changer -- -- what does it do.
-- electric cars.
Well I don't know -- does much for -- against electric -- that they didn't.
Make much economic -- up to now they made at some point in the future whether we have more oil or not.
We've never had to get electric cars.
What we what we have here though is the game changer.
Let's go back that president's statement it was nonsense on a variety of levels in 1977.
We had 31 billion barrels of proved reserves -- sort he's pointing to now.
We have actually produced.
Eighty billion barrels.
So -- to start with 31 reproduced date we have money for and that's according to -- statistically -- nonsense.
Final thought he had earlier we read a lot of it does have to do with the racquet technology -- -- that reserves that we had here in the US that would bear.
Weren't necessarily attainable based on the current technology so there has been a change Stephen let me ask you because states around the country.
You know we talk to be able for Morgan yesterday they're scrambling to figure out.
How to make up for the fact that people aren't using as much gasoline so they're not getting the tax revenue.
That they need from that gasoline.
Does this change that math equation I -- -- gas is cheaper because there's more oil.
Will people start driving more -- there's been this huge stretch of the country mean we were thinking that demand a while ago he or buying more recently.
People are buying more fuel efficient cars and they were driving last 'cause it was so expensive if we have more oil and more gasoline do we start driving more again is -- -- that trend when you pick.
What was so we gonna drive more we're -- market is going to respond to these lower prices.
We also have to keep in mind now part of the argument with moving to be better mileage -- car.
It's from an environmental standpoint so it certainly is a valid reason so from a social standpoint I think it will be difficult for us to you we ourselves off the -- -- Which we've gone up so fond -- over the past couple -- and start moving back to the Chevy Suburban and so from that standpoint I know didn't demand will be strong.
But from the argument from an environmental standpoint we have I think turned the.
And -- this I mean it's terrible news for the Middle East because they have economies that are completely dependent on oil revenue I mean whether -- are friends -- enemies depending on you know where you're looking around the world.
It is this a big enough deal to change that dynamic or or change the direction of it.
-- because it's gonna give us an increase production it is no lower price which is good for -- bat for them.
It's gonna increase spare capacity so we're not likely to see those huge price spikes.
Makes us less worried about every little cool are about political disruption in the Middle East.
So there they're gonna lose their power to the extent that we gain a more stable market which we will from down.
These spot and -- before we go Stephen you know it and let's not forget natural gas.
The boom in natural gas helps us produce cheaper electricity as well and in a better fossil fuel -- -- -- in terms of CO2 emissions well.
Indeed and natural gas now actually predated the oil remember natural gas prices.
Were well above the oil prices ten years ago but again the market was allowed to respond.
We respond to these high prices we've got the supply enough supply.
Years don't talk and I depend on the geologist -- -- talk to.
So we respond to that and not natural gas prices have -- -- the same thing has happened in the oil for got a great boon for -- -- gentlemen thanks so much -- got to bring.
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