♪.
LARRY: WELCOME BACK, SO, IS OPEC
PLANNING AN OCTOBER SURPRISE?
COULD BE A BIG NEWS THING.
IT COULD HAPPEN TOMORROW, THE
NEXT DAY.
JOINING US NOW, SENATOR
JOHN HOEVEN OF NORTH DAKOTA.
SENATOR HOEVEN SIR, WELCOME
BACK, I DON’T KNOW, MAYBE YOU
KNOW SOMETHING.
YOU’RE ON THE ENERGY COMMITTEE.
IS OPEC GOING TO SLASH
PRODUCTION AND DRIVE UP PRICES
IN THEIR OWN OCTOBER SURPRISE?
WHAT ARE YOU HEARING, SIR?
>> LARRY, IT LOOKS LIKE THEY
MIGHT DO JUST THAT.
WHAT WE’RE HEARING STARTING
YESTERDAY IS THAT AT THEIR
MEETING WEDNESDAY THAT THEY’RE
GOING TO DISCUSS POSSIBLY
REDUCING PRODUCTION BY A MILLION
BARRELS A DAY.
THIS IS OPEC PLUS.
SO THAT INCLUDES RUSSIA OF
COURSE, AND THE ESTIMATE IS THAT
COULD ADD ABOUT $10 A BARREL TO
THE PRICE OF CRUDE.
OF COURSE THAT MEANS HIGHER
PRICES AT THE PUMP FOR
CONSUMERS.
LARRY: WHAT IS THE, JUST IN OIL
TERMS WHAT IS THE MOTIVE?
WHY WOULD THE SAUDIS DO THAT?
BECAUSE, SENATOR, LET ME JUST --
OIL PRICES HAVE COME DOWN.
A LOT OF IT HAS TO DO WITH THE
STRATEGIC PETROLEUM RESERVE.
A LOT OF IT HAS TO DO WITH
RUSSIAN PRODUCTION PROBABLY
STAYING HIGHER BECAUSE CHINA,
INDIA IS BUYING IT.
I DON’T KNOW, THERE IS A LOT OF
FACTORS OUT THERE BUT WHY WOULD
THE SAUDIS HIGHER PRICES?
WHY WOULD THE SAUDIS WANT TO
HELP FINANCE VLADMIR PUTIN FOR
EXAMPLE?
>> YOU KNOW, LARRY THAT IS AN
INTERESTING QUESTION.
YOU KNOW WE’VE BEEN, OR THE
BIDEN ADMINISTRATION HAS BEEN
TAKING A MILLION BARRELS A DAY
OUT OF THE STRATEGIC PETROLEUM
OIL RESERVE AROUND IT IS DOWN TO
ABOUT HALF OF THE CAPACITY.
SO IT CAN HOLD MORE THAN
750 MILLION BARRELS, DOWN ABOUT
350 MILLION BARRELS AND GOING
DOWN.
THEY KNOW AT SOME POINT THAT IS
GOING TO HAVE TO REVERSE.
WE’RE PRODUCING ABOUT A MILLION
LESS THAN WE DID AT THE END OF
THE TRUMP ADMINISTRATION.
SO THEY SEE WHAT IS GOING ON
HERE.
SO THIS IS REAL INTERESTING
MOVE.
TO ME IT LOOKS LIKE AN EFFORT TO
REALLY DEMONSTRATE THEIR MARKET
POWER.
LARRY: YEAH.
THAT’S RIGHT.
WE HAVE GONE, USA HAS GONE FROM
ENERGY INDEPENDENCE OR DOMINANCE
NOW, NOW WE DEPEND ON THESE DAMN
OPEC MEETINGS AGAIN, JUST LIKE
IN THE OLD DAYS WHEN IT WAS JUST
SO PATHETIC.
THE STRATEGIC PETROLEUM RESERVE,
IF YOU ARE RIGHT, SIR, WE
KNOCKED OFF, HALF, TAKEN OUT
HALF OF THAT.
IT IS INTERESTING IF SAUDIES CUT
PRODUCTION, AMONG CONSEQUENCES
OIL PRICES WILL BE HIGHER.
IF THE BIDENS CAN COME BACK TO
REFILL "SPRO" WITH CHEAP OIL
PRICES NOT GOING TO BE ABLE TO
DO IT.
>> THE ONLY THING THE
ADMINISTRATION SHOULD DO IS TAKE
HANDCUFFS OFF OUR ENERGY
PRODUCERS.
IF WE GO BACK TO WORK WE CAN
INCREASE THE SUPPLY MUCH MORE
THAN A MILLION BARRELS A DAY.
THAT MEANS ALLOWING OUR
PRODUCERS DO WHAT THEY BEST,
WITH THE BEST ENVIRONMENTAL
STEWARDSHIP.
THAT WILL HAVE IMPACT RIGHT
AWAY.
IT IS NOT ONLY ABOUT PRODUCING
MORE SUPPLY.
IT BUSYINGNALLING TO THE MARKETS
MORE SUPPLY IS COMING THAT
STARTS TO REVERSE EXACTLY WHAT
OPEC IS DOING AND THAT’S WHAT WE
NEED TO DO.
LARRY: WE SHOULD BE IN THE
DRIVER’S SEAT.
I DON’T KNOW WHAT THE EXACT
RIGHT NUMBERS ARE, SENATOR.
BUT LAST I SAW, WE WERE STILL
PRODUCING ABOUT 11 1/2 MILLION
BARRELS PER DAY.
PRE-COVID CLOSE TO
13 MILLION BARRELS A DAY.
THAT IS A BIG GAP.
ALSO SIR, AS YOU RECALL, THE
ENERGY DEPARTMENT, WHATEVER THE
THINK TANK IS, STATISTICAL THINK
TANK, WE ARE PREDICTING
14 MILLION BARRELS A DAY HERE IN
2022.
IN A SENSE WE’RE LIKE
3 MILLION BARRELS A DAY SHORT
WHICH IF WE’RE ON THE MARKET
PRICES WOULD BE DOWN TO $50 A
BARREL, SOME UP.
GASOLINE AT THE PUMP, WOULD BE
CLOSER TO TWO DOLLARS A BARREL.
WE WOULDN’T CARE ABOUT THE DUMP
DUMB OPEC MEETINGS.
WE DIDN’T CARE FOR SEVERAL
YEARS.
NOW WE HAVE TO CARE.
>> YOU’RE EXACTLY RIGHT, LARRY,
STOPPED OIL PRODUCTION OFF
FEDERAL LANDS BOTH ONSHORE AND
OFFSHORE.
FOR THE LITTLE BIT WE’RE
ALLOWING THEY RAISED ROYALTY
RATES AND TAXES SO IT COST MORE.
IN ADDITION WON’T LET US BUILD
PIPELINES, LNG FACILITIES, DOING
ALL THINGS PUTTING HANDCUFFS ON
OUR ENERGY PRODUCERS, SO THAT
THAT IS WHY PRODUCTION WAS DOWN.
YOU’RE RIGHT, SIR.
TAKE THE PRODUCTION OFF, WE CAN
INCREASE THE ACTUAL SUPPLY,
THINK ABOUT THIS.
THE ADMINISTRATION AT SOME POINT
WILL REVERSE TAKING A MILLION
BARRELS A DAY OUT OF THE
STRATEGIC PETROLEUM RESERVE,
START BUYING IT BACK TO PUT IT
IN.
IF YOU’RE OPEC, THINK ABOUT WHAT
YOU’RE DOING.
YOU’RE NOW, LIKE JUJITSU.
THEY WILL MAKE THE
ADMINISTRATION BUY IT BACK AT A
HIGHER PRICE.
LARRY: YES, SIR.
>> WE GOT TO CHANGE OUR ENERGY
POLICY.
WE NEED TO KEEP PUSHING FOR
THAT.
THAT IS WHAT WE’RE TRYING TO DO.
LARRY: IRONICALLY, I MEAN, LOOK,
I DON’T SAY THIS WITH CROCODILE
TEARS BUT THE FACT IS IF THE
SAUDIS CUT PRODUCTION AND OIL
AND GASOLINE PRICES GO UP, THE
PEOPLE THAT ARE GETTING HURT THE
MOST ARE THE DEMOCRATS AT THE
POLLS ONCE AGAIN BUT IN A SENSE
THEY’RE HOISTED ON THEIR OWN
PITARD SENATOR HOGAN.
I DON’T HAVE ANY SYMPATHY.
NOT ONLY BECAUSE I WANT THE
CAVALRY TO WIN.
THE FACT IT IS THEIR CRAZY
GLOBAL WARMING, TURN THE FOSSIL
SPIGOTS OFF THAT PUT US IN THIS
POSITION IN THE FIRST PLACE.
IF YOU ASK ME, THEY’RE GETTING
WHAT THEY DESERVE.
GIVE YOU THE LAST WORD.
>> THINK ABOUT IT.
THE PRESIDENT WENT TO
SAUDI ARABIA, MOHAMMED BIN
SALOMAN, MBS, ASKED FOR MORE
PRODUCTION, DIDN’T GET IT.
NOW THEY’RE PRODUCING LESS.
I MEAN, THEN HE TALKS ABOUT
BUYING OIL FROM VENEZUELA AND
OTHER PLACES THAT OUR
ADVERSARIES.
HEY, THE SOLUTION IS SIMPLE.
WHO HAS THE BEST ENVIRONMENTAL
STEWARDSHIP IN THE WORLD?
WE DO.
THIS IS COMMON SENSE STUFF.
LET’S PRODUCE MORE ENERGY HERE
AT HOME.
LET’S GET THE RIGHT ENERGY
POLICY IN PLACE SO WE CAN DO IT.