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-- -- this week we've been reporting on America shale boom the surge in US energy production and its impact on American business and the economy.
Today to energy insiders -- here with more on this seismic shift taking place in the energy sector.
Given book is managing director of research a clear view energy populace.
John -- -- -- a former Shell -- president now with citizens for affordable energy thank you gentlemen both for being with us today.
For also legendary investor T.
Boone Pickens kicked off us special report this week saying that America shale boom should help us kick our addiction to OPEC oil.
Take a listen.
We'll break it down we use about eighteen million barrels a day produce about half of it and import half of it.
All that we get from Canada and Mexico.
Is pretty close for four -- million barrels in the rest that comes from OPEC.
We don't have -- OPEC and it's a place to get out of -- -- Some strong words from T.
Boone Pickens Kevin you say though we should be careful not to alienate the producer nations that supply us explain.
Well look energy independence is a great goal and certainly producing more -- -- good from the security and from an economic perspective.
But we still need OPEC producers we're not -- independence yet and even if we get to independence there were still big global price for oil that will come home to us.
We want OPEC producing for the world so the world as well supplied so the price is lower at home.
John do you agree it's a balancing act about -- essentially being able to export more of our energy for profits while also.
Relying on some of these other oil producing nations forum supplies.
Well it's absolutely true that it's a global business and you never want to -- -- trading partner because it may come back to bite you.
But further to tournaments -- We could do ourselves a lot of favors in this US economy.
If we began to use transportation he began -- use natural gas.
As a transportation fuel not just for trucks but for cars and every other vehicle that we can think up.
That would dramatically reduce the need for imports that would dramatically increase the available oil to the rest of the world at a reasonable price.
And that would be a an economic stimulus to the US economy that is so desperate in need of an economic stimulus.
-- -- my -- that because that's something that governor Tom Corbett brought up the other day.
The impact to stay local economies from jobs and tax is in all that to listen to what he had to say.
Growing jobs in Pennsylvania and -- we need the economy of Pennsylvania.
We have raised one point eight billion dollars -- 2007.
Out of this industry.
You've done some research on this right.
We took a look at every county -- Pennsylvania and we correlated the shale wells in that county to the economic.
Fortune -- the county looking -- the unemployment rate change.
What we found was a pretty strong correlation no surprise drill more wells more -- goes into the counting more permits.
More money gets spent and guess what the unemployment rate fell.
But here's the deal.
It also started to go back up.
In -- natural gas prices fell one of the downsides.
Of the jobs multiplier is that it works two ways to the important thing to do -- don't have regulation in the way.
To keep you from expand in maintaining the economic gains that you're getting.
Because it's real and it matters but it goes both ways.
That's -- back to your point earlier I mean this is something that the economy as a whole needs right.
Absolutely we have wonderful pockets of prosperity.
In areas where extraction is moving forward at a at a rapid pace North Dakota Texas Pennsylvania and so on.
What we need is national economic expansion and I would argue that if we moved our natural gas production from about 68.
BCF today billion cubic feet.
Up to about a -- red that's a big number a hundred but we started to use about thirty billion cubic feet a day.
To make -- CNG compressed natural gas LNG liquefied natural gas and gas to liquids DTL.
And we started fueling flex fuel cars with a mixture of methanol and gasoline.
We could do all lot a build out of infrastructure.
To make all of this methanol to increase the rate of gas production and we would see national economic growth.
Not just pockets of prosperity.
Kevin let me talk about -- it seems like the big oil companies we talked about this early in the week of being somewhat late to to getting into this.
And so they have a choice that choice that they they can either.
Go ahead and set -- their own infrastructure all by other companies that already.
Using this process.
Do you see a lot of acquisitions going on as we move forward from the big -- companies.
Increasingly you're going to be seen that particularly gas prices remain well.
And what you get is something similar to what happens and pharmaceuticals were the big companies by the innovated by attacks -- -- a lot of cash for companies that took big risks are still running it thin margins.
You have big engineering firms that can swallow them up and get economies of scale that is the natural course of things but those innovative companies are also doing pretty well relative to the it -- -- companies in other sectors.
And yet we all of these regulations like holding us back.
And -- take a listen we have had to many -- CEO and chairman Tom Farrell on the other day talking about.
Nat gas exports there waiting and waiting -- permits take a listen.
Been waiting on a permanent without a complete application for over two years.
The studies have been done.
It's time to issue permits I think important -- and our our case we've signed -- twenty year export agreements with.
A company Japan's Sumitomo.
But I have right -- and a lot of people want to do this and yet.
I'm -- the government government is holding them back.
There are too many examples and it's across the entire energy sector.
Whether it's the keystone XL pipeline.
Whether it's the -- -- licensing.
Of a new nuclear reactor whether it's a pipeline anywhere in the country whether it's a refinery a storage tank.
A gas station.
The regulations that engulf this industry.
Are not for the faint of heart.
Because you have to have persistence.
A positive outlook a positive mindset because you have.
Or you have unmitigated.
You know undertaking.
To try to prevent progress from taking place at sort of put -- -- that and still to produce for your investors is really a challenge for this business.
Were holding ourselves back in this country from economic stimulation.
Because of mindless bureaucracy.
And an over regulated environment.
Kevin in the excitement of fracking in this huge resource of natural gas has been a lot of talk of converting.
-- -- natural gas we've seen it with -- the bigger tracks the eighteen wheelers but as for the actual passenger vehicles.
It seems -- -- -- -- on we -- -- a long way away from having the kind of infrastructure needed for that to have a huge impact would you agree.
At least right now that's true that -- -- vehicles that have point to point paths with a start and in the same place.
Good starting point for compressed natural gas eighteen wheelers around to -- corridors that's the next step.
I think you look at locomotives also very interstate potentially very large market.
And also some of the marine applications before you start talking about smaller passenger cars a lot of difficulty in terms of where you're gonna -- it -- infrastructures there.
And it takes a long time to fuel if it must he do it overnight in your house that's not currently available -- comes.
Down real quick I'd be remiss if I didn't ask about the environmental aspects and all the studies that are being done we have the executive director of Greenpeace no surprise he's completely against -- What do you say it all those people out there that think it is dangerous to us.
Well you have some ideological zealots who make -- -- a religion out of the environment.
And they think they have the right to stop the vast majority of people in this country from just having a job from just living a better life.
And I'm all for people to have freedom of speech but I think common sense has to prevail not religious zealotry.
Thank you so much Kevin book of clear view energy partners John -- my serve citizens for affordable energy.
Gentlemen thank you both for joining us today.
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