IT WAS BEFORE.
JACKIE: HILLARY VAUGHN ON
CAPITOL HILL. THANK YOU.
THANK YOU.
JOINING ME NOW U.S. OIL AND GAS
ASSOCIATED PRESIDENT.
TIM STEWART IT AMAZES ME WHEN I
LOOK AT TAPPING THE SPR AND
MILLION BARRELS PER DAY AT THE
SMALL DROP IN THE BUCKET WHEN IT
COMES TO THE CONSUMPTION HERE IN
THE UNITED STATES WERE IF YOU
LOOK GLOBALLY.
I THINK BACK TO MARCH BEFORE THE
PANDEMIC STARTED WHEN WE WERE AT
13 MILLION BARRELS A DAY.
IF WE WERE BACK THERE THAT WOULD
BE 2 MILLION BARRELS AND IF WE
COULD’VE GOTTEN SHELL PRODUCES
HIGHER WE CAN HAVE THREE OR
4 MILLION EXTRA BARRELS A DAY RATHER THAN DIPPING OUR PAWS
RATHER THAN DIPPING OUR PAWS
INTO THE FDR.
>> THAT’S A GREAT POINT THE
RESERVE WAS CREATED IN THE 70s
AND ABSORBED PRICE SHOCKS FOR
LOCAL EVENTS THE SHALE
REVOLUTION UNLOCKED RESOURCES
100 TIMES BIGGER THAN ANYTHING
WE EVER PUT IN THE RESERVE
BILLIONS OF BARRELS OF GAS THE
UNITED STATES.
THAT PROTECTED US FOR SEVERAL
YEARS.
EVERY TIME WE WOULD GET DRONED
OR OPEC NATION WOULD GET
SANCTIONED THE DOMESTIC
PRODUCTION LEVELS ABSORBED THE
PRICE SHOCKS AND CONSUMER NEVER
NOTICE THAT IN THE UNITED
STATES.
IF WERE BEING HONEST THE PRICE CLIMATE DOES NOT CONSTITUTE A
CLIMATE DOES NOT CONSTITUTE A
NATIONAL EMERGENCY BUT IF YOU
ARE A DEMOCRAT CONSTITUTE A
NATIONAL POLITICAL EMERGENCY,
ONE OF YOUR OWN CREATION AND
FRANKLY THAT’S WITH YOU
ADMINISTRATION AND CONGRESS IS
TRYING TO DEAL WITH.
IT TAKES 13 DAYS FROM THE TIME
YOU ORDER A RELEASE FROM THE
RESERVE TO GET INTO THE SYSTEM.
IT WAS MENTIONED EARLIER MARKETS
ARE PRICING 15 - 90 DAYS OUT.
THE MOST RECENT BIDEN RELEASE
ACTUALLY HAD THE OPPOSITE
EFFECT, 18% INCREASE IN PRICES
AFTER THE VERY MODEST RELEASES
WERE ANNOUNCED.
THEY’RE MAKING UNINTENDED
CONSEQUENCES HERE.
JACKIE: FUTURE TRADERS LOOK AT SUPPLY AND DEMAND DYNAMICS.
SUPPLY AND DEMAND DYNAMICS.
THE AC TAPPING THE S&P ARE FOR
AN EXTENDED PERIOD OF TIME BUT
THEY KNOW THAT IT IS TEMPORARY
BUT THE CONFLICT IN UKRAINE
CONTINUES GRADE WHEN THEY THINK
ABOUT PRICING THE FUTURES SIX
MONTHS OUT THEY SAY ESSENTIALLY
THERE’S NOT WAY TO BE A CHANGE
TO THE GAS POINT AS HILLARY
BROUGHT UP.
I WANT TO BRING UP ANOTHER ISSUE
SO MANY DIFFERENT STRATEGIES
HAVE BEEN RAISED BY THE WHITE
HOUSE TO TRY TO HELP WITH
PRODUCTION ISSUES, CERTAINLY NOT
DOMESTICALLY AT HOME.
ONE IS TO GET OPEC TO BOOST
OUTPUT, THEY SAID THEY WILL NOT
DO THEM.
ANOTHER IS TO RE-SIGN THE
NUCLEAR DEAL WITH IRAN, POSSIBLY
TO GO TO VENEZUELA.
VOTERS ARE TAKING A LOOK AT THIS
AND THEY ARE SPLIT ON WHAT THEY
THINK THE ADMINISTRATION SHOULD
DO.
I WILL POINT OUT ONLY 33% SAY
THAT THEY WANT IMPORTS FROM IRAN
OR VENEZUELA BUT THE OTHERS ARE
QUITE INTERESTING.
SHOULD THE ADMINISTRATION
APPROVE OIL AND GAS PIPELINES
WHICH IT SAID IT WILL NOT DO
SHOULD THE INCREASED DOMESTIC
PRODUCTION, THEY CLEARLY DO NOT
WANT TO DO THAT.
INCREASE RENEWABLE SOURCES, 75%
THINK THAT IS THE WAY TO GO.
YOUR THOUGHTS?
>> THE ONLY WAY TO MITIGATE THIS
HISTORIC TREND IS THE
ADMINISTRATION GO RELEASE A
THIRD OF THE RESERVE INPUT INTO
THE MARKET BUT YOU HAVE TO
COUPLE THAT WITH AN INCREDIBLY
AGGRESSIVE RETOOLING OF YOUR
MESSAGE.
YOU NEED TO SEND THE SIGNAL TO
THE MARKET IN THE GLOBAL MARKET
THAT THE ADMINISTRATION SUPPORTS
THE OIL AND GAS INDUSTRY IN THE
UNITED STATES.
IT’LL BE DIFFICULT FOR THEM TO
DO BECAUSE THERE IS A LONG
RECORD OF RECENT DATA OF THE
ADMINISTRATION BEATING MY GUYS
ON THE HEAD AND SHOULDERS OF
WHAT WE DO BUT THE POLL SHOWS
THE PUBLIC SUPPORTS ALL OF THOSE
POINTS AND I THINK THAT’S WHAT
GIVES THEM COVER.
READ THE CHINA OPEN UP A LINE OF CREDIT SO TO SPEAK WITH THE
CREDIT SO TO SPEAK WITH THE
SAUDIS, IRANIANS AND BENEFITS
WHALEN’S.
THE IMPACT OF NATIONAL SECURITY.
THE DEPARTMENT OF DEFENSE SPENT
$20 BILLION OF URINE ENERGY
COST.
EVERY 10-DOLLAR INCREASE IN A BARREL OF OIL IS ABOUT A BILLION
BARREL OF OIL IS ABOUT A BILLION
DOLLARS A YEAR, THAT IS A
NATIONAL SECURITY ISSUE BECAUSE
IT COMES OUT OF THE OPERATIONAL
COST AND READINESS.
IRANIANS AND RUSSIANS KNOW THIS
RATE IS FOOLISH TO KNOCK ON
THEIR DOOR AND SAY HELP US OUT
WHEN IT’S A NATIONAL SECURITY
ISSUE MORE THAN ANYTHING.
JACKIE: ABSOLUTELY.
ONE OF THE REASONS THAT VLADIMIR
PUTIN CHOSE TO INVADE UKRAINE AT
THIS MOMENT TIME.
HE SEES THE UNITED STATES AS
WEEK WE HAVE A MATCHING THEM
INTO MASSIVE INFLATION PROBLEM
AND HE CAN SEE THE HANDWRITING
ON THE WALL WITH THE PRODUCTION
GOING ON IN OIL PRICES GOING UP