Also in this playlist...
This transcript is automatically generated
They eliminate Chicago right off the -- this is after the president made a surprise visit there.
You know basically is he wasn't gonna go he was gonna go the First Lady was gonna go in the last the -- -- -- -- plane -- go to Copenhagen as it put us over the top and it didn't.
And Jesse Jackson actually Jeff Flock is out of Chicago on the Fox Business now network right now talking to people out their faces were stunned that interfaces -- -- -- right.
He spoke to Jesse Jackson Jesse Jackson's -- I don't even know what happened I can't even tell you said.
We sent the eighteen and you're right it was the president Jason birdies and AT and -- part of an old Brock.
Bomb everybody Olympics yeah glad somebody got that all -- -- I agree with you we sent everybody out there when you send the president and First Lady out there yeah.
-- -- -- and the big old man who would have been the clincher when of that without any violence to see because nobody ever got killed in the eight team that's very.
-- allows it went -- back it would have been in 1989.
The year they announced that Atlanta was gonna get the Olympics and the place you know it's like you here.
You're on -- court you're quell the spring innocent is.
Juan Antonio some monster that was at the time the president of the international victory when he said the city of Atlanta you know we always freaked out if everybody -- wholesaling freaks out because you think it's a windfall.
You're buying houses that by four houses downtown on the rent each one of them out for the month that the Olympics are here don't make millions.
And nobody ever made anything they're buying pushed carts to -- Olympic you know hats and T shirts and everything.
And it being a lot less of the financial went back and we thought it -- Well and that's up whatever it was insane and that's what that -- debate has been right if it comes to Chicago Chicago then end up broke after at all but admitted it good for patriotism and how cool to have that your city.
Jeff Flock interviewed people that said that they were ready to volunteer for the next seven years to prepare but they don't get.
But an office in the next seven years of their lives -- and I don't mean the next seven years of my allies on the part of that big -- jobs on which by the way.
It's been talking about this for a little bit came out today actually -- craze here with this and maybe some -- that Robert has few things to say about jobs today.
Ugly and it really sent futures.
Down before the opening bell yeah how surprises that we rebound the little definitely you know -- -- -- -- coming -- -- -- I think people are anticipating.
-- this is sort of the changing environment we've we've discussed a load on the show we saw this week with the IS MI another closely followed not manufacturing number.
Out yesterday is the -- the fact that you know it's and suddenly it's not less bad.
Yet when we were coming off the bottom everyone's very pessimistic and suddenly we've sort of stronger.
More optimistic now I see you know who you we've heard the proclamations the recessions over stock's up fifty or -- percent or more off their lows.
But suddenly it's not quite good enough so we've sort of -- but -- the pendulum is swinging the other way now and -- again.
You know anyways it's better than the numbers we are seeing of job losses -- couple months ago.
It's just not as.
It's viewed the the number we were expecting -- see fewer jobs lost -- -- the number that was also you know it's all relative in a lot of and its expectations.
You know we look for little things you know every time these numbers come on the economist to start to pour into it and say can I find a silver lining here -- -- find something to be positive about.
-- you find anything looking through the numbers that you could say you know what.
This actually a leading indicator sign that things might be turnaround.
So far it's it's been really tough to find out I mean aside from the the overall numbers being -- lower than they had been.
But -- Harold all the numbers you keep looking through -- here you have continuing to yet the manufacturing -- it it's it's down dire.
Average workweek it's down now we're -- -- record lows and that's what we are looking for the signs that my working longer and making more.
And the places that we were seeing hiring in the past we didn't see government education that's right you know Chris -- of FT and financial -- -- report out this morning actually said there is very little to like about this morning's of one point he couldn't find a silver lining either.
And I agree with you I think.
You could argue that we are getting a little spoiled that we're looking for too much to say that this market is turning.
And that this that little bit of bad news that lovely no people of the party kind of thing and that's I think -- -- -- with parents.
I really got pizza but no pepperoni I don't know very clearly that bowl yeah -- solid -- now and I thanks probably our guys here.
All right that's a quick break again a reminder on this show today it's all about energy oil and everything else like that but wouldn't talk to -- Schoenberg right now about.
The market still -- -- get to our energy specific topics.
Todd joins us in San Antonio right now he of course managing director at league colds.
Trade -- how are you.
I'm doing great thanks for having me they -- problem why what do you make of the fact that we are down right now seventeen points on the day -- and not.
We had -- an absolute abomination.
Of an economic report this morning with the jobs number and yet we're still OK what do you make about that.
Lack -- -- agree we get -- -- -- the number this morning was catastrophic as far as I'm concerned any time you start seeing.
That -- continue to go down it does bring back -- the feeling that idea we might have a double dip recession and that could be it cause for concern going forward.
But it's nice to see the markets actually just you know like -- -- -- down seventeen right now S&P 500 is down about 4% since the last fed meeting on September 23.
So I would -- haven't quite pre sold the leading up to today's number.
And and there were some evidence out there that that really made analysts and pundits out there really feel that -- -- a number might be worse than expected itself.
I'm happy to see the market's rebound as they have to that.
Have one of the things you talk about -- sentiment that the market is moving because of sentiment and we've heard this before you know well.
You got -- -- that you can't fight the tape all that but is that the right reason for this market to keep going up just because people think it should.
Well it's not the right reason Tracy and here's the thing when we saw the sell off earlier this year we won't we reach that level on March ninth.
What really drove the markets and even a one year ago when we saw the intense volatility in the markets.
That really had a lot to do with the notion and had zero to do a technical charts had zero to do with fundamentals.
It was all based on -- -- which was fear because people were selling because they wanted to sell.
They felt that they should have been doing it they did what they felt that they should have done years a gallon and sold at the Hyatt during the last bull market.
The point -- is that going forward -- short term.
This is spine -- remember -- unemployment or eight the employment numbers that's a lagging economic indicator and there's still a feeling that we will have positive growth going into 2010.
You already hear people coming out saying yes we of poverty accident beat the recession which is great.
But then we have Fed Chairman Bernanke just speaking yesterday -- house financial services committee.
He's actually setting expectations saying this is going to be a jobless recovery.
But over -- -- that when you start looking at fundamentals and that's ultimately how this market's going to start trading again.
And it kinda did -- here the last couple months.
But you're really going forward you will see investors out with focusing on those fundamentals and that's actually going to be what's pushing -- which will push the market higher.
Todd got to go to break and about a minute but I want to get your thoughts on what would change your mind you very bullish right now is there anything out there that you see.
All one particular thing that is that it did change your mind in May be making a little more bearish even in the near term.
While those two things here one we need jobs we already know that a number two more importantly I think it's oil.
I mean once you start seeing oil prices going higher that pushes prices at the pump even higher -- not cuts in two discretionary incomes and air force shoppers can't go out and spend.
Remember Chris 70% of gross domestic product in this country comes from the American consumer so they're not spending that's gonna have a damaging impact to the bottom line today is publicly traded companies and it would have a negative impact on the market so I would say it's oil.
We're gonna break quit but -- that's why then you don't like the home -- sex sector -- well we're not buying anything.
Absolutely correct I mean we're actually in the Tories are down 54% from the peak in mid 2006.
But still people are not buying right now the sentiment that.
-- confidence is just not there to go out and buy it come right now I'm not happy with whom voters the incentives that they have coming out right now.
I would stay away from right now -- was about.
Yeah I have to say I'm with you I went out looking I've been -- toying with the housing market and I'm not happy with what I see either.
Todd always great to have you Todd Schoenberg from San Antonio Texas thanks for being with us today we'll -- soon.
Thank you -- and don't forget about -- go to break you can always email us.
At the end live at foxbusiness.com.
At twit on Twitter I'm not putting -- -- -- well.
-- Tracy Byrnes and -- and of course at at the end live and we want to hear from you in any shape or form.
We'll be right back -- -- and oil falling gas hot and cold water.
Welcome back to foxbusiness.com.
Chris -- and Tracy Byrnes -- special -- weekend edition I guess you could say we're talking abouts.
Oil and energy all things energy -- certainly a lot of sense with all that cap and -- on going on right now joined by Art Smith president triple.
And and eight I PAK.
-- welcome to the show.
Thanks very much -- why what do you make right now all of the energy markets in terms of flow from an investment standpoint do you see opportunity there.
Absolutely the received fundamentals for oil globally improving with supply and demand balance is coming together.
And a lot of a very strong feeling that oil on the seventy dollar a barrel range will hold for a while.
But let's talk about specifically what you liken this energy sector you you like the broad energy market you don't like their refineries.
Because I mean for a lot six reasons right supplies -- nobody needs anything right now so wit you're looking more at the exploration side.
The services side where even the equipment.
Right that people need to replace their machines they need to hire for certain this services to fix them.
Exactly well the -- bit.
Increasing demand for oil worldwide and we require -- at least a thousand rigs active in the US to.
Supply the natural gas and oil that we need.
We think that the sweet spots in the energy exploration induction area.
Suncor Canadian natural and -- and and then we like the that the -- company's exploration production companies in the US where.
There's something really exciting happening -- -- called the shale gas revolution where.
They've found ways to unlock these some vast quantities of gas from.
Areas are our rocks that previously were thought to be on economic.
We'll is it still economic as I think that's the -- my understanding is that it's it's too expensive to be able to extract that whether it's crew and it's natural gas from the -- from the sands.
Seventy dollars a barrel for crude oil up.
Well the two markets have completely separated natural gas has traded as low was two dollars a million -- to -- this year.
But the -- Herbert is in -- -- -- and gets up to 67 dollars.
In 2010 and beyond.
There's a recognition that they rig count has fallen so quickly.
And the supply of gas in the US we'll start declining.
In the months ahead and how to bring supply demand back in the balance and -- is really cheap even at six hours that's equivalent.
Forty dollar oil so it's extremely will be extremely competitive.
And add to that the fact that liquefied natural gas supplies are coming on around the world -- -- A future of -- of full.
-- -- economic natural gas in the years ahead.
Bob let's talk about natural gas I know it's you what you say is the real story one -- -- Viewers just wrote in and said he can't fight the natural gas story so why -- why natural gas why do you like so much.
While the number one it's it's economically competitive they convicted did actually now is displacing coal and not utility generation.
And because of the ability to find these large -- -- new gaffes -- -- still a mystery still trying to figure out just how big game this is going to be.
But it appears to be a game changer if that's been said.
The problem is and in the the short run we have too much of a good thing we have 500 BCF.
Oversupply in an inventory of gas right now.
But we think that'll be worked off and we think that the the market for natural gas will expand substantially in the years ahead and -- you've heard about compressed natural gas vehicles we've we think that the administration and policy makers will begin to figure this out.
Just a lot of natural gas that can be produced and displace.
Other -- types of energy.
But is that because if -- -- oil and -- if cap and trade -- is natural gas winds so is that part -- part of the play here.
Think you're betting that actually do you gonna go throw.
Ball up and I'm not gonna bet on -- thing in Washington but I will say that I think that there is immense pressure for us to work on the carbon emission problem.
So I think over time yes that's got -- it will it will played it not for gas and natural gas has the distinct advantage it's clean burning its plentiful.
We have a pipeline infrastructure in the US which is second to none.
And add to that the LNG supplies which are coming on around the world there's a huge buildup about -- G now coming on the market.
All right you say it alternative energy plays -- little overrated here obviously there's the threat of that being propped up like government.
Intervention but what about just based on the price of oil -- You like oil about 6570 dollars -- barely hear what price.
This is the alternative energy and become viable -- -- because people don't wanna pay a much for oil anymore.
Well the problem with that the primary alternative energy so sources are wind and solar.
Most everything else is still a a pipe dream at this time.
And neither wind nor -- can be competitive with natural gas that's priced at five dollars to seven dollars million -- to use.
-- -- -- I'm not a believer in subsidies of any kind.
And I don't -- and I think that.
The chances of us really changing the mix here in the in the short run are pretty -- so I don't like subsidies I don't like I don't like alternative energies.
Which is seeing now is that I was going to send me your stock picks and you're -- you know stocks -- Canadian Natural Resources suncor Smith Weatherford.
All of that Janet Taylor since it you know over the last pretty -- since the beginning of the year where you're natural gas plays like XTO.
Haven't been out that -- so it is that maybe because they haven't really taken off to the races yet and maybe these other.
All the old style is if I could say that old old school and energy plays are done traditional traditional I like that back.
-- I -- I think all of the leading.
Oil and gas companies are have some stake in these emerging shale gas play.
So XTO is as good a company as it gets it gets -- resources.
We got -- following Chesapeake and some of the others it's sub.
It said that the big thing is that it's a game changer -- -- this is a a new technology that's going to really enhance the ability of the US to use gas and provide a competitive.
-- continue -- -- the country thank you very much heart and I hit Art Smith.
From a triple double -- -- do we go from Houston to Pittsburgh right now -- -- -- -- COO and president called soul energy.
Joins us right now from Pittsburgh PA nick thank you very much for joining us.
-- -- -- -- the good OK you had to held out wanting first what on earth is high BTU by two monus coal.
The fact that the IP TV Tim is -- -- -- leading producer of underground coal in the United States and with a leading producer of natural gas and Appalachian basin so.
Going back to -- -- your prior comments were about as old school -- traditional -- again.
So that means you are I'm really against cap and trade you -- they.
Well we've got a lot of concerns with regard to cap and trade and in most of those concerns go to the cost side of it.
And when you look at the costs it's really a regional issue -- United States is going to be regional winners and it's going to be regional losers in the regional winners are typically going to be.
The California to New York's.
And the the regional losers are basically going to be the middle of the country with regard to his neck pace for this vs net benefits when you look at the benefits side.
There's also concern there because if you do think that C it is a problem.
And that we need to regulate that.
Across our activities with regard industries.
The Waxman Markey bill and the nature of CO2 emissions is basically going to have a miniscule effect with regards CO2 levels looking out the next hundred years.
So gonna cost issue -- we're concerned about that a benefit issue.
And energy is the most basic building block you find in any economy our economies -- a different.
And coal and natural gas being able to be the low cost producer and provide a cost of factly that's really important not just the -- energy but also to the country that.
But that's I guess my hesitation with all this stuff about 46% of -- -- -- produced from coal these days.
And the numbers drop 22% natural gas 20% nuclear and only 12% goes to the other other wind solar and other.
So we have all this but do we have the mechanisms and or will we have the mechanisms in place to make that conversion out to cold by the time.
And cap and trade is supposed to take effect.
Well you know when you look at the issue in terms of how you solve the carbon problem.
Technological you look at -- clean coal technology.
Carbon capture and sequestration exists we've already commercialized and demonstrated.
Across a range of industries the different lengths of the chain.
That you need to accomplish capturing the CO2 coming out of smokestacks.
But we haven't done is we haven't commercialize that and demonstrated that on commercial scale -- power plant a coal fired power plant some really all we need to do if we want.
Is to invest the time invest the money.
To bring all those links in the chain together which has already been commercialized.
And shows it on an integrated basis -- given power plant.
And this will war so technically I think we're very comfortable with the pieces which they make the investment and put the focus on showing that an integrated fashion.
Nick you are talking a little while ago about the viability of alternative.
Energy sources whether it's wind or solar.
What about the viability of clean coal I hear about that all the time and I really.
You know I don't know that it is -- clean coal in the traditional coal but is that viable and is that something you're looking at and explain the differences -- as quickly if you will.
Sure clean coal technology it's a fact it's not something that might be or will be down the road it's been here for the last plus 35 years.
And what we used to focus on in terms of -- mission control for clean coal technology.
Who -- like sulfur dioxide with acid rain nitrogen oxides and ozone and particulate.
You look at a coal fired power plant today that is built a new one it is over 90% cleaner with regard to all of those emissions I just mentioned relative to the one -- replaces.
And that's been through the demonstration technology over the past 35 years and fifty billion dollars plus of investment.
Into the the power plant flee across the United States.
Which changed today is basically now adding carbon dioxide to that list as something would want to control or reduce emissions from.
And again when you look at -- technology we would want to apply to power plants with regard to that.
That's already been demonstrated on individual links.
We need to do now is we need integrate that.
Bring that together at a given commercial power plant demonstration project and show the world within the next ten years we can demonstrate what's already been demonstrated individually by different segments.
-- -- attempt to break it's cheaper to make electricity.
With coal that any of those other sources is -- not.
Cole is the cheapest form of electricity outside of nuclear that's been proven decade after decade.
Electrification improves quality of life across a range of parameters doesn't matter what country or what region you're looking that it's one of the most important strategic advantage -- we've got within this country.
When you look at things like Waxman -- cap and trade need to be very careful from a policy perspective -- undermine -- strategic advantage.
And that -- -- kids at Christmas time without coal but faces tough and I'm powerhouse a lump of coal is not necessarily about a ten.
Could mean the that's sort of like you know the the pot of gold the -- ready rainbow for -- coming out from art.
Thanks -- we appreciate you know.
-- access CEO and president Consol Energy joining us in Pittsburgh all right coming up Bart Chilton a member of the Commodity Futures Trading Commission.
Will -- -- to talk about what carbon trading market.
Could look like.
Welcome back fun.
Business dot com live -- Saturday it's Friday.
We're not gonna -- there's so much time -- is clouded already with all this information but it's so good and both sides of the argument aren't -- you get you -- you know.
Well administrator of the US Energy Information Administration is here that's helped un cloud my brain trying to wrap around coal.
Nuclear natural gas you name it.
By natural gas right now what are your thoughts going forward with natural gas.
Well as as you mentioned -- natural gas is 20% per 20% of a US energy needs.
Over 50% of US households use natural gas is our home heating fuel.
A 3% of electricity approximately and it's major source of fuel for for industry.
Over -- but would be last year we've seen significant changes.
In natural gas markets.
The demand has come down into the economic downturn primarily in industry it's actually increased somewhat in the electricity sector.
At the same time we've seen a significant production increases in the United States primarily in the form of -- -- -- Which over the last several years has become economically viable due to -- technological advances in horizontal drilling.
And hydraulic fracturing.
So this decreasing demand this increase in supply of the last for several years has led to substantial increase in inventories which are now -- an all time high.
And we expect them to continue to build until the summer heating of the winter heating.
Season begins -- as a result we've seen significant declines in natural gas prices over the last year.
-- falling by about half more than half on average this year compared to last.
And did what -- inimical to it will change is gonna depend on on the rate of economic recovery and also what that implies in terms of doctor gas prices.
Increases in and really -- the United States in the longer term prospects for for -- So our energy prices -- -- this winter because of that.
We expect that they will be another result.
We expect that -- -- home heating bills for those who use natural gas will probably be lower this winter.
The CIA will be releasing a winter fuels outlook which will give more details on that.
I'm of course there's a large degree of uncertainty in natural gas prices as there is an oil prices.
And depending upon whether we have a particularly warm winter or cold winter.
Could have a significant effect on natural gas prices.
Rich real quick hurricane season it's sort of -- and down right now we didn't get a major hurricane in the golf.
How much of an impact did that have on prices and if one would -- -- happen to pop up here in the next to a three weeks.
How much how much of it I could have then on the other side.
Well hurt he would always have that tendency if it was to shut in natural gas a more even if there was the expectation that would try to natural gas would tend to have an upward.
Affect on prices however we have very significant inventory is at a record high and so.
The degree to which that would affect prices would be probably modest.
Richard I think that's really good news for people like me who keep the heat cranked in the winter even now I'm not supposed to do and I -- -- I had about what he gonna do Richard no administrator of the US Energy Information Administration.
Thank you so much for being with us.
Thank you and by the way it is freezing in this news I now.
Life Haas how -- -- -- thank you everybody for cranking the a C -- and we needed Bart -- joining us right now as we continue our.
Conversation on energy CFTC commissioner joining us that in DC -- welcome -- -- -- Good to be with you guys are now in the big thing we were talking about cap and trade a little while -- -- this is gonna create a secondary market's gonna create a market if -- If you're buying and trading.
-- futures if you will.
How how this be regulated in -- there are concerns because -- understanding that there might be some concerns that this is going to be very readily.
I'll open to fraud.
Going forward are you concerned with that and how how do you see it regulated -- forward.
What what was a lot your your question let me take them one at a time.
One it's going to be a large large market the derivatives market could be a very large market I've estimated date could be.
Two trillion dollars now -- to give you a sense so -- how large that is.
It would be not as large as Euro dollars which for the number one futures traded in the US.
But it would be larger than say crude oil which is the largest physical commodity so would be pretty large two trillion dollar dollars.
But I'm not worried about the -- if if all of the transactions are done.
On regulated exchanges.
Right now we have over the counter transactions that have that happen for.
Many commodities in the the energy India.
Metals complex in particular.
But I'd like to see all of this trading done on exchange so we can avoid that fraud abuse.
Or as you suggest the potential of even manipulation I want somebody looking at these things all the time it's too important.
For the environment but it's too important to the economic engine of our democracy that we actually get this right and have steadfast sure -- regulation.
-- but this a win for you are for you guys and just -- people understand.
Under cap and trade if it goes through -- every company will get a little permit on how much they -- didn't CO2 they can in the into -- Environment what they don't use they basically good trade off and -- you need more appeared.
If -- sloppy and admitting more into the universe you can somehow -- mine and bar.
You -- would be controlling this little bartering back and forth.
Yeah we -- it you know that it if the cap and trade part where the trade part of -- you know congress would establish the captain and the allocations that you're talking about three -- they'd be.
Under the house bill by idea by idea.
The EPA -- protection agency and then the commodities futures trading commission -- my agency would be in charge of making sure there's no.
Fraud abuse or manipulation I don't look at added as it as a win ferocity what we'll do whatever congress tells us to to do.
But I do want to let people know that we can handle this.
We do all sorts of contracts who long as we have the staff to do it.
We can not only do we can do a really good job of avoiding fraud abuse of manipulation these cap and trade markets.
Is there any concern here about some.
All horror manipulation if you will by the government all but you know over regulation because we've been hearing that obviously I'm in the banking industry here.
For so long -- there any concern about bad in this particular market that'll discourage.
Yeah I mean there's there's that at least a sort I think.
Two different issues one is you need to get the allocations right to begin with and that's that I said the EPA's perspective.
What happened in the European Union when they started this is they over allocated.
And therefore they discredits themselves weren't much weren't worth much people didn't need them so the first thing is to get the allocation right.
And by the way that's about the the only thing that's different from say.
A crude oil contractor.
Gold contract is that.
The government doesn't doesn't control the allocation that's only -- different with with with these carbon credits.
But once we it get it.
As long as we have the people looking at it.
I'm not worried about broader or abuse it's it -- long as we can see everything in the markets I don't want bid large transactions going on.
In what people called dark markets and that essentially just means unregulated markets where there's not transparency there's not daily reporting.
But we've got a whole plethora of -- oversight and surveillance.
And accountability measures that we use every day 24/7 365.
So we're ready if in fact congress decides to give us this authority look at these markets.
-- this seems to me like it had the potential to be an over active market I -- are you are you excited about this.
Cap and trade decide whether -- really believe in the policy at all just -- all this coming to you I mean I think this could be an exciting.
Trading place just to even watch this.
It is I mean you wouldn't.
You do something like this just for the trading venue -- -- that it has that.
That the bonus of saving the world maybe but -- from my perspective it is very exciting because.
The the enormous potential of these markets what it cannot only do four.
Of markets but what -- can actually you do for consumers and for the economic engine of our democracy.
We can really fuel inject our economy it can be a stimulus if you will.
And so I am super excited about it I think it's a neat thing enough.
I'm hopeful that we get the chance to be -- participant.
-- I think you hit right on the head it's a stimulus for the economy you can make a lot of money and you can save the world I don't think there are three things that we could really you know -- We'll come up with it would be better than that.
It's like Syria there are correct treatment thanks -- we appreciate it -- thank you so I guess Bart Chilton obviously not a gun.
Commissioner of the Commodity Futures Trading Commission -- you so much.
All right up next we'll talk to Exelon executive Betsy Mohler about the utilities decision.
The split with the chamber of commerce over cap and trade without nuclear still excited about that they would.
-- even -- you can always email us at BM live at foxbusiness.com.
-- on Twitter at -- live.
We want to hear from you I'm on Twitter -- -- new -- I'm a newbie I'm like I'm slowly you know there's like four people following me I'm following link him but nevertheless I'm out there for people who are swear and related to all of them.
Becky Moeller is here Exxon executive and former FERC.
This is one of the largest electric utilities out there so clearly now you are in support of cap and trade tell us why.
Yes we are where it's part of passing that legislation -- sentence we can to cap pollution.
To give us the tools to that make at the least.
Program possible most cost effective program possible for our customers.
And to get on with it.
-- there's such a split here Betsy within the chamber of commerce is the US chamber of commerce for talking about here.
Why there's some like his -- source -- supportive and others who are so against that.
Well the chamber has taken a position that we should wait until there's an international agreement the forward pass legislation.
We believe the time to pass legislation is now.
It will be more expensive for everyone in the long run if we wait.
If we pass legislation now we can both curb the pollution.
And clean up our environment and create jobs we think that's a very positive thing to do and we shouldn't wait we should be leaders not followers in the international community.
Now I hear anyone -- doesn't have put American companies at a distinct disadvantage when we talk about the consumption of the brick nations particularly.
Brazil Russia India China and if you've ever flown into a city like Mexico City for example you'll know that hard Byron Reynolds.
Laws are much tougher than they are in other parts of the world.
Doesn't have put us at a real disadvantage.
I think it all depends on whether the bill is done right we believe it's possible.
And there are a lot of economic studies that show it is possible to do that to do the bill in a way that he is very positive for our economy.
We also believe that ultimately other nations will follow.
Betsy you are also the largest operator of.
And -- are about 20% of electricity comes from nuclear so you stand to benefit.
Tremendously -- company I should say stands to benefit tremendously from a cap and trade policy.
Well we have been advocating.
Passage of climate legislation for a number of years our CEO John -- First testified in 1992.
When he was with the different.
Company that we needed to address.
The climate issue.
And that's why we're in favor of legislation we believe that that done right what proper protection for our customers that this can be.
Win for the United States economy but why do you think that if the if it's handed over to the EPA it would be more closely.
The EPA doesn't have the tools.
That would enable it to do.
A cap and trade bill where you cap the amount of pollution -- there can be and then used the ingenuity of the marketplace.
To figure out the least cost way to implement the bill EPA doesn't have the ability to do that they're going to be much more command and control.
And we've seen with other programs of EPA has run.
That that's a much more cost.
Good way to do it.
Betsy -- we still just keeping with the nuclear -- -- because yeah I support nuclear power I see in Rio the Europe and it's very popular in Europe.
Are do we still have Three Mile Island and Chernobyl in you know Jack -- from the China syndrome on our brains.
And we missed the point in terms of the fact that this is a much cleaner energy than the -- where.
Yeah we remember that we think -- Well it is a clean energy source and our world is changed dramatically.
Since Three Mile Island by the way we army unit on Three Mile Island that is producing electricity today.
And it is a clean.
Safe secure heavily regulated source and we're proud -- that we think it has a very important part to play in the future and a low carbon economy.
What's the fear that just real -- what is the fear that people have twelve nuclear energy.
Well it's a fear based on a lack of understanding and knowledge of what the industry is about.
It also is a fear based on another -- so -- say get past that.
We have a question from -- -- he asks about -- micro generation to reduce power line loads and potentially encouraging renewable development on the smaller scale.
Is that may -- a way to go about doing it from another angle.
Well we need to and the studies have shown that we need all kinds of electricity and a low carbon future we need we need renewables.
We need clean coal.
We need natural gas we need nuclear we need them all to keep our lights on com and this safe reliable future so micro grants are important part of it.
But they're not can't be the whole story.
-- we appreciate your time thanks for joining us this afternoon.
Thanks for having our existing -- from next -- joining us to talk about it if your her company's.
From you know role if you will after cap and trade to fuel there and supportive and and nuclear is a big part of how they'll wind with this thing.
You know it's going to be interesting moving forward it's it's this conversation is very -- to me about alternative -- because we talk about how.
Solar could be such of a benefit for us but this I think the size and Scoble both solar and wind power.
Is hard for you -- -- get their arms around and you know we gonna have wind farms from Montana to Texas are we gonna have a solar field.
The size of Rhode Island out in the desert in Nevada -- Utah on you know those are things that you have to think about.
The cost of that and the scope in order to generate enough power.
For us is is pretty astronaut.
And will really be ready will we have the technology in place when the cap and trade rules say we should be having this conversation is so interesting because it is black and white.
If you're cold guy you're against cap and trade if you are all alternative sources of energy person you clearly -- because you're gonna win at the end of the day.
When and that and that -- mean -- seems to be the consensus thus far.
When I lived in Boulder, Colorado a little.
Lou like left.
Conclave in this -- right -- state of Colorado.
There's so many girl is out there that had -- a huge solar panels on on our house that would almost to the new house twice the size as a live and out the solar panels and they were great but it's not -- -- he was almost a science -- my father.
To be able to put these solar panels on top of that house and humbled and not actually just looking -- viewer wrote -- and said solar is not seem.
And not its seat but he wind -- is not cheap -- you think about the land -- got to have the land you've got ahead in Italy it's.
But yet you seem to Europe you see these are huge win those all the time -- up on top of mountains and -- and a lot of people don't like it but the thing about his.
We've got to make changes one way or another be -- as a solar field.
We've got to have -- wind field.
-- guests are using less energy and it has to be some sort of given taken this whole process he cannot continue to burn coal.
In burnt oil until it runs out there will run out but it -- cap and trade the way to go honestly triple I don't think so I don't think so either I mean and this I mean I get reports coming from -- win for him but there are alternatives no tax breaks and things like that other than that right let you know.
Will will wait and see.
Yeah goats are coming up after the break the CEO of Edison International parent company of Southern California Edison will join us.
Welcome back to foxbusiness.com.
Chris cutter Tracy Byrnes with you and Ted -- with us right now chairman president and CEO of Edison.
-- as we continue our discussion.
On energy one of the -- largest electric utilities in the nation -- welcome to the -- Thanks very much a life -- we've heard a lot about the Smart grid in Southern California explain to us a little bit about this what this is.
An Al this is helping your customers in Southern California save money and use electricity more efficiently.
Yes will we're really excited about a number of the things will be able to do and Smart grid.
Space particularly those Smart meters or what we call -- -- -- and Smart connect.
This gives us the opportunity to.
Really provide our customers with the additional operating efficiencies as well as energy efficiencies.
And importantly also strengthen the reliability of the electric grid.
So are they working means you are you seeing people benefit from these things are -- just big pain in the neck at the end of the day.
Well -- a pain in the neck we really believe these are going to be.
A key ingredient for.
Building out the entire Smart grid.
At this point we -- in beginning stages of our installation of what will ultimately be over five million meters.
For a residential and small business customers.
We've already installed.
Smart meters for our.
Large commercial and industrial customers in fact we do that between 2001 in 2003.
But this is a huge deployment aimed -- Providing benefits to our residential customers and small business customers.
-- what can explain what makes a grid smarter you know that we are all talking about the grades when we were talking about electric cars and it.
-- -- our cars in the grades it's certainly in this area just Indy Lights out around here so what makes the grid Smart gotten.
Well -- it's a really good question.
And I think there's a lot of confusion about exactly what this term Smart grid means.
To me what it means is it's making our electric system more efficient and more cost efficient and very importantly more energy efficient.
In the when you really look at electric system for instance and our companies are.
First legacy company was formed and 1886 so we have.
Really a long history when when you look at the technology.
It really hasn't changed that much in the last 100 years.
Now what's beginning to happen is the introduction of solid state electronics.
Electronics the ability to add computing.
Into our control of the electric system.
This is a huge change and something that truly is transformational.
As we say around our company will probably see more changes to the electric system in the next ten years than we have in the past 100 years.
So we see a lot of promise.
To really provide energy efficiency.
And operating efficiencies.
To the customers through the so called Smart grid.
Tit for years I have been -- literally years I've been hearing people say you know what I'd love to own an electric car.
But I just don't -- real howled when a deal to -- it -- -- -- on the street when I got to do run and 11 of those big 200 foot orange.
Cables out there extension cords and plug the thing in there's no gas station that has it that I can plug in a service stations and -- You don't run one of the largest -- -- the largest privately electric vehicles in the nation.
What do you tell people when they say you know what I do something it's viable.
We have had a lot of experience as you mentioned we actually have.
Largest private fleet.
Of electric vehicles we've been at this since 1987.
We have over 300 electric vehicles in our fleet so for instance meter readers use electric vehicles we even have.
The bucket trucks that linemen use.
Some of those are essentially electric vehicles.
So we have had a lot of experience and a lot of the issues that you mention are.
The ones that were really trying to to understand and figure out how do we build a robust infrastructure system.
That can really allow.
For widespread deployment of electric vehicles.
You mentioned four apartment dwellers or for instance in New York City.
Or any large urban setting.
Where people don't have.
A steady place city garage space to put their core.
Well those are relatively.
Unique circumstances but ultimately we need to find a way.
To build the infrastructure.
That will support all electric vehicles.
In Southern California.
Going back to the eighties and particularly into the early ninety's.
A lot of infrastructure was built public charging stations.
And I think there's a lot more that can be done and certainly will be done on that front.
One of the one of the key issues is trying to make sure that.
In working in partnership with other utilities working in partnership.
With the car manufacturers.
With the battery manufacturers that we make.
The customer experience a good experience.
Right well that's and that brings me to my question that what's -- and cost -- be cut customer at the end of the day is clearly he's gonna take work.
If these are stronger self healing grids if there -- more powerful that must mean more money to get them that way.
How the cost and passed on to the consumer.
That's a great question and I think it's only fair to understand.
Something -- this transformational.
To a solid state digital.
Throughout the entire global energy system and all the way to the customer.
That is a large and costly transformation.
Just taking the Smart meters for instance which were in the middle of deploying right now.
We worked for a number of years to be able to prove to ourself and ultimately to the public utilities commission and to our customers.
That the benefits that we saw from.
Better efficiency better operating efficiencies that are energy efficiency.
Would ultimately -- for the cost of the meters.
So in our business case which we worked on for quite awhile.
The benefits to exceed the cost of installing all of those Smart meters.
Well Ted we got coming from a viewer Tim Virginia says remember folks there are people out there will live up the -- just not it can be done so.
That's one for your team said Ted Kramer chairman president and CEO at -- -- National thanks so much for joining us -- explaining all that.
Thank you Tracy -- groups -- rights and we appreciate it wouldn't be right back with Eric Bolling.
Tracy's gas blood in the CEO of gas buddy dot com I don't yeah there's -- -- on the wrong.
Yes I know I didn't into the Pacific -- gonna ask for a gas tax.
He's along with a good.
Apparently at a gas buddy.
Yeah bullying host of happy hour is here to talk to us about the oil he's only -- he's all my instinct Zamboni off weekend wasn't that wasn't an email address.
Pulling at gas or ball and got gas or something a little while falling gas was the email address.
I'm gonna pick and -- hit people remembered it bad enough solid and that's all matters its still active bowling gas at foxbusiness.com.
If you wanna complain about gas price because that's where North Carolina when they're on they're not.
-- they're not change our -- sheet and it is famous.
I actually think oil prices are gonna come down barring any major you know incident with with Iran in the Middle East but then again that's a big barring any because that -- happen -- any time I mean he's literally I've -- -- -- is thumbing his nose at the international community as we speak in Geneva.
Saying look and whatever you -- surely have but give me two weeks and may go straight maybe I won't in the bottom lines will be Obama's statement yesterday after.
After a lot of the information -- Kamal from the Geneva meeting was all right we want to see what's going on and if not than they -- will step up sanctions well.
That's all he's heard direct -- job and in the Iranians for three years now we don't have any.
Sanctions with any teeth.
Or we haven't we don't use them Russia won't jump on board China won't get involved.
So it's going to be to same thing in the bottom line is.
In a few years or less you're gonna have another country with a bomb a nuclear weapon and here's a guy who says Israel shouldn't even.
Be on the map as it is it's going to be very scary place you know we've got a lot of supply in the system that capacity at the refining level.
When we return to fundamentals at some point time in terms of price and if we do where there is that -- -- because speculation is still the market is the driving the market isn't.
You have but you know when you see speculation would mean I mean you'll -- oil oil stocks and all are okay but -- that -- are -- -- are all out Israel on an oil stocking your 401K or your.
-- -- mutual fund that has exposure to any sort of energy or whether it's infrastructure or.
You're -- -- you're speculating on oil up the price 68 dollars a barrel to 69 dollars a barrel today.
I would say probably fifteen maybe eighteen dollars is these geopolitics is and what if Israel says I'm not waiting -- -- United States were just gonna go we're gonna take -- this nuclear facility because we don't want to be the on the on the you know on the business end of a bomb.
So maybe eighteen dollars to bring it down to fifty and and may -- another five dollars of of what you'd call speculation -- hedge funds buying in the in case you know.
The world blows up and they don't want to be in this I'd like to say this is my question is is.
Does can demand right now which seems to still be -- support seventy dollars a barrel oil eighty dollars a barrel level -- time to -- that doesn't really.
Break down because this is in the -- to -- that big oil lost its pure.
The -- to supply and demand may be.
When across fifty dollars for the first time was that maybe 45 years ago and everyone -- -- say -- -- oil -- had -- good inflation hedge you know also to would you politics hedge.
You know what.
The stock market doesn't look so good -- better jump in in in the commodities markets in the two places you go in between when you buy commodities gold and oil look at the cold.
Couple 1004 bucks announced that it -- But I don't know about you know and we we wouldn't complain -- -- four dollars a gallon but we still go to work.
People we draw what have you had -- funny thing is.
We drove suvs the work of four bucks all Detroit -- is a they turned it over to hey let's start building hybrids smaller vehicles higher fuel efficient vehicles and then the price would tell -- what's up.
I want my suvs that account so I don't really kind of chasing the -- The auto makers are so.
And I -- my guess.
At four bucks Tracy you know it liken it to you -- you used to so I mean yeah so where does not a vast plains this whole picture.
-- guesses is just the quirk I've treated natural gas for 23 years it's Corky -- commodity on the plan.
Natural gas traded as low as about two dollars and thirty cents per and then BTU which is the unit they traded him while.
Oil was still trading 75 dollars a barrel there that -- is the widest discrepancy between the price of the barrel and a unit of natural gas ever.
The price of the barrel still here and in personnel I -- a lot -- what was it like that it.
That there's no economic fund function to natural gas right now now the biggest players in the world big hedge funds have been realized that they can throw around natural gas -- much.
Less liquid commodity no no -- But they realize that they can move the price and there are a couple of big big players natural gas who have directional bets on and they kept the price -- for a long time I things.
For now you talk about historical because -- you know people talk all the time about.
Well historically it's seasonal historically now from the summer to December it drops and it picks back up.
Is this year different whether we're talking about crude little talk of a natural gas coal -- well because of this pending legislation might really change the -- world does as far as you know forever look here's here's the issue would -- if -- member of 20063 years ago Ameren advisors big big hedge fund -- directional bet on oil and natural gas bullish.
All they needed was a cold winter or hurricane summer they got neither they lost six billion dollars lost six billion dollars us that you haven't.
Right woman was of your privacy every -- if it is not a -- They want to -- away one or Katrina and in the years after that.
We're we're very bullish before for those commodities they missed that so.
We haven't had really cold winter and a couple winters and we haven't had a massive hurricane season and a couple of seasons now since Katrina and her gusts of I was kind of there but.
Do either one of those events would drive prices a lot higher so you know you really kind of playing on the weather.
It's a very by the way the most the top closely tied to money to the weather would be natural yes.
I kicked out because like you said at any moment -- that John could do something and then they -- Theory your training with a crazy person in the background Malia but imagine if -- had a bomb on the workers who by the way you if they do -- or when they -- get the bomb.
You wanna talk viable tool and sector energy energy -- where we only have a couple second couple what do you do with him what do you do without vision.
-- some Obama yes.
I saved Israel it's all yours you wanna you wanna take care this go ahead and use our space -- airspace -- -- landing strips and in Iraq.
-- good and and just get them -- they'll do it.
They're waiting for us and I know.
That's his new little bit too but there are a lot of reasons Eric -- and thank you I've got.
I had that problem and -- during the -- you've got Trace.
-- you want to human face it and not I'm the guy who do this term treatment and all your unfortunate telling Soviet Goodling did.
You know give you goodly thankfully along with.
It's not -- -- -- with the naked how to.
I don't do and they make I had to get a big public life listen to the naked cowboy at three but it makes more sense treated -- Have you seen naked cowgirl by the way I've seen it since -- scary -- -- lover but she's very.
By legal -- ball into the naked cowboy -- Jason -- right now founder and CEO of gas buddy dot com these candidates -- -- He's up -- -- statue on Jason thanks for joining us.
Jason you say -- notes that -- -- would -- to Eric about how.
Gasoline prices may start to go up here certainly in the summertime it's seasonal and they're typically a higher.
You say we might see four dollars a gallon gasoline again by next summer why is that.
Well you know it when the economy picks up -- having a lot of demand for gasoline.
In the US and also globally as well.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- for us what you.
What gas but he does -- -- critical and helps people find the cheapest gas in their area.
Well guess what is a network of over 200 cast FaceBook states.
We've definitely got -- -- -- their -- let's say -- don't have about Los Angeles desperate stunt car.
Basically beginning city -- -- where it is absolutely for people this -- hit -- keep its guests everybody can help beat Tennessee my.
Yeah so you could I could go to my little gas station and saying -- this gas was cheap but my car broke down mile -- -- may -- it's bad -- like them but -- like that on this night.
Let's say -- -- like it it's it's a forum for people to host the cheapest and most expensive gas.
And -- there if everybody -- -- -- the cheapest gas is the site easier to see my guess.
Jason we run a website you wanna get the most eyeballs possible you wanna find a way to monetize that site per share.
I would imagine things are better off for you when -- -- four dollars a gallon gasoline.
Then when it is an L right now two dollars and fifty cent gasoline because people people perceive it as being cheap gas right now.
What people do perceive it is being cheap -- -- most cities across Turkey could still see it there you're forty cents per gallon by knowing where to shop.
There's a -- -- discrepancy between those stations.
Well we invited when president moving when they're volatile -- or doubt you know more capitalistic than when they're flat.
I have very frustrating that gases.
-- -- some more expensive.
I'm from New Jersey so the closer I get to the -- of the more expensive gas is the further out it's cheaper so.
And because they never get my act together in time I'm just about to -- to the town I need to fill up.
Why it why the big discrepancy is it based company is -- based on who has the better snacks in the convenience store.
Stations actually hate different -- -- prices depending on what's already been held its own -- -- -- one major city may have dozens of zones.
But -- insular thinking that you know -- city.
Do you look -- largely -- competitive factors between stations.
That's what he noticed some stations have -- -- maybe a couple cents per gallon cheaper.
One that but it hasn't -- -- strategy.
-- -- -- -- -- -- -- -- I would also ask you -- geographical standpoint this I just don't know this.
It seems like in some areas of the country United States gas is always less expensive than in other areas even in areas -- a major metropolitan areas you would think.
Well middle -- the transportation routes to get there must be easier you would think it would be less expensive that is necessarily the case.
Yeah and it really depends on the area and -- -- finance affluence of the suburbs and pay a little bit more for gasoline -- less I sense.
But bedroom communities that have a little bit cheaper prices because -- young families -- big suvs -- any bad.
And they have to live in the bedroom communities -- you a courthouse there.
They have these big -- needs and with gas princess.
34 dollars per gallon civilian past people.
OK so did the -- -- -- you seem to think that gas going up you say five to six dollars a gallon.
Yeah you know I think looking within two to three years we will see.
Six again no this is of course -- -- That the economy's going to pick up.
That's against the big assumption over the next at least a year to and that flat line and you're saying that it's because we're driving less so therefore.
Left -- man price goes up that's just basic economics.
Well you already know pace -- -- lower because that decreased demand.
But there's lots of international factors such as China and indeed India.
There's an excuse lower gasoline and crude oil than they ever -- a possible to have the population.
Or times the glass and using a lot more crude oil and -- Jason just on the web -- before we -- because we got around.
-- gas -- dot com.
Jason hockey season is under way -- and enjoy it all right yeah.
-- -- -- -- from eastern Saskatchewan by the way.
Moose jaw Saskatchewan my favorite city in Saskatchewan.
Flint flew on is my favorite city in Manitoba to wanna get that straight so if you had your favorite city in the province of Manitoba let us know here on the -- -- -- -- -- flying Manitoba yet -- -- -- the great Philadelphia -- it was from moose -- sketch one maybe calculus I'm ready at that has children that sounds like all these kick to characters.
And I don't know what that is because I don't have kids not been -- -- -- a lot on energy.
Us in the -- polling giving us his insight on what's going on out let's -- geopolitical.
You know environment with a loyal.
On natural gas solar.
Certainly nuclear is well very anxious to see how that -- particularly -- if cap and trade.
Does get passed in some form nuclear certainly looks like one of the big beneficiaries.
And have been trying to get -- on the table for a long while we're gonna keep talking about it thanks for joining at this Harry you know he's -- Xbox business that.
I had every weekday at -- he yells look down I'm.
And of course check out I didn't.
Filter by section