>> MARIA: WELCOME BACK.
TENSIONS BUBBLING OVER TRADE.
MEXICO STRIKING BACK WITH
TARIFFS ON A HOST OF AMERICAN
MADE PRODUCTS FOLLOWING
PRESIDENT TRUMP'S TARIFFS ON
STEEL AND ALUMINUM.
OUT OF MEXICO THERE MAY BE A 25%
IMPORT TARIFF ON IMPORTED
PRODUCTS.
KEVIN HASETT ADDRESSED CONCERNS
OF A TRADE WAR IMPACTING
AMERICA'S ECONOMY JUST
YESTERDAY.
>> THE TRADE DEALS ARE VERY
AUSSIE
USSIE
SISSIE
SIMIIE
SIMILAR MET TRICK
AIMILAR MET TRICK
AASILAR MET TRICK
AASMMAR MET TRICK
AASMMET MET TRICK
AASMMETRIET TRICK
AASMMETRIC. TRICK
>> MARIA: JOINING US NOW IS THE
CEO OF THE AMERICAN PETROLEUM
INSTITUTE, JACK REMEMBER JARRED.
THE -- GERARD.
HOW WILL THESE TARIFFS IMPACT
THE OIL AND GAS INDUSTRY?
>> WE'RE VERY CONCERNED THAT WE
HAVEN'T LOOKED AT ENERGY IN ITS
TRUE CONTEXT.
WHAT I MEAN BY THAT IS WE
UNDERSTAND WHAT THE PRESIDENT'S
TRYING TO DO IN TERMS OF THE
BROADER DISCUSSIONS.
MEXICO, CANADA, CHINA AND
ELSEWHERE.
BUT FUNDAMENTALLY FROM AN ENERGY
PERSPECTIVE UNDER NAFTA WE'VE
HAD OPEN BORDER TRADE POLICY FOR
MANY YEARS.
WE'RE SIGNIFICANTLY NET
EXPORTERS TO MEXICO.
A LOT OF PEOPLE DON'T REALIZE WE
IMPORT A FAIR AMOUNT OF MEXICAN
CRUDE THAT COMES TO HOUSTON, TO
THE U.S., WHERE WE REFINE IT AND
SEND IT BACK TO MEXICO AS
REFINED PRODUCT OR AS GASOLINE.
WE'RE VERY CONCERNED THAT WHAT
WE'VE NOW ENTERED INTO COULD
DISRUPT IF YOU WILL THE
EQUILIBRIUM, THE BALANCE WE
ACHIEVED IN ENERGY TRADE.
WE WOULD HOPE THEY WOULD THINK
CLEARLY AND SPECIFICALLY ABOUT
ENERGY AND WHAT THIS MEANS FOR
ENERGY AS THE PRESIDENT'S TRYING
TO ACCOMPLISH HIS BROADER
PURPOSES.
>> MARIA: AS THE INDUSTRY'S
NATIONAL TRADE GROUP, THE TRADE
ASSOCIATION WITH 625 MEMBERS,
YOU'RE REPRESENTING SOME LARGE
COMPANIES TO SMALLER COMPANIES
IN THE OIL INDUSTRY.
WHAT WILL BE THEIR REACTION?
WILL THE OIL COMPANIES BE FORCED
TO RAISE PRICES?
>> WELL, WHAT HAPPENS IN THIS
CASE, MARIA, IS YOU CREATE A
GREAT DEAL OF UNCERTAINTY.
LET ME GIVE YOU ONE SIMPLE
EXAMPLE, A LOT OF PEOPLE MIGHT
NOT THINK ABOUT.
WHEN YOU START IMPOSING TARIFFS,
QUOTAS OR SANCTIONS ON OTHER
NATIONS, YOU COME TO PINT WHERE
THINK ABOUT RIGHT NOW WE JUST
DID A RECENT STUDY THAT SHOWS
77% OF OUR LINE PIPE, WHAT WE
USE IN INFRASTRUCTURE IN THIS
COUNTRY, IS IMPORTED.
FOR WHATEVER REASON, IT'S BEEN
BROUGHT IN FOR MANY YEARS FROM
OUTSIDE THIS COUNTRY.
THINK OF ALL THAT THAT'S ON
SHIPS TODAY COMING TO THE UNITED
STATES.
ALL OF A SUDDEN WE'RE TOLD WE'VE
INCREASED THE COST OF THAT 25%
OR WE'RE TOLD THERE'S A QUOTA
IMPOSED AND BY THE WAY, YOU
ALREADY REACHED YOUR QUOTA.
YOU SEE THE DISRUPTION, THE
UNCERTAINTY IT CREATES IN THE
MARKETPLACE.
THAT'S NOT GOOD FOR US.
BECAUSE THEN WE TEND TO GET
CONSERVATIVE IN OUR INVESTMENTS
AND CREATING AMERICAN JOBS,
PRODUCING AMERICAN ENERGY.
>> MARIA: THE U.S. GOVERNMENT
ASKED SAUDI ARABIA AND OTHER
OPEC MEMBERS TO INCREASE OIL
OUTPUT.
>> HOW AMAZING IS THAT.
>> MARIA: THIS IS A RARE REQUEST
AS GAS PRICES ARE ON THE RISE.
OBVIOUSLY IF THEY WANT TO RAISE
OUTPUT ACROSS THE WORLD, THAT
TELLS YOU THEY'RE TRYING TO
OFFSET POTENTIAL PRICE
INCREASES.
>> WELL, ABSOLUTELY.
AND WHAT UNFORTUNATELY WE NEED
TO BE FOCUSED ON THE U.S.
WE ARE NOW THE WORLD'S LARGEST
PRODUCER OF OIL AND NATURAL GAS
IN THIS COUNTRY.
NO ONE WOULD HAVE THOUGHT THAT
POSSIBLE JUST 10 YEARS AGO.
BUT WE'VE ACHIEVED THAT AND WE
DID IT ON THE BASIS OF FREE
MARKET PRINCIPLES, ABLE TO BRING
IN PRODUCTS, SUPPLY CHAINS THAT
ARE VERY COMPLICATED,
SOPHISTICATED AROUND THE WORLD.
WE NEED TO CONTINUE THAT EFFORT
IN ORDER TO BENEFIT AMERICANS,
PARTICULARLY AMERICAN CONSUMERS.
>> MARIA: WE WILL SEE ABOUT ALL
OF THIS, SOME OF IT I THINK IS
PROBABLY LEVERAGE THAT THE
PRESIDENT IS USING TO HIT BACK
AT CHINA.
BUT THIS IS ALL STILL IN
DEVELOPMENT STAGES.
JACK, WE'LL BE WATCHING THE
IMPACT.
THANK YOU FOR WEIGHING IN.
>> THANK YOU.