HE'LL CONTINUE TO BE SOFT ON
RUSH A A REFRAIN AS WE GET
CLOSER TO THE MIDTERM ELECTIONS
AND 2024.
BACK WITH ME IS FORMER U.S.
ENERGY SECRETARY FOR PRESIDENT
BARACK OBAMA, EARNEST MONIZ.
SECRETARY MONIZ, WHAT'S THE WAY
TO HANDLE THIS?
BECAUSE IF YOU CUT OFF OIL
EXPORTS, AMERICA CAN FRAC MORE
AND IN THE MEANTIME, EVERYONE IS
PAYING MORE FOR HEATING OIL AND
GAS.
WHAT'S THE SOLUTION?
>> FIRST OF ALL, WE SHOULD, OF
COURSE, RECOGNIZE THAT YOU CAN'T
JUST TURN ON THE FAUCET AND
PRODUCE MORE OIL AND GAS.
THAT WOULD TAKE SOME TIME AND A
MAJOR PART OF THE UNITED STATES
NOT RAMPING UP MORE, ACTUALLY
COMES FROM THE FINANCIAL SECTOR
WHICH IS ASKING THE OIL AND GAS
COMPANIES TO RETURN MORE
PROFITS, IF YOU LIKE, TO THE
INVESTORS.
WITH REGARD TO RUSSIAN OIL, THE
IRONY IN A CERTAIN SENSE IS THAT
WHILE PRESIDENT BIDEN HAS NOT
SANCTIONED THE OIL EXPORTS, THE
REALITY IS RUSSIA IS HAVING A
HARD TIME SELLING ITS OIL
BECAUSE CUSTOMERS ARE NOT BUYING
IT.
THEY'RE DOING THEIR OWN
SANCTIONS PROGRAMS IN A CERTAIN
SENSE, AND FURTHERMORE, OPEC
WHICH HAS ASKED ALSO, THEY DO
HAVE SPARE CAPACITY THAT THEY
COULD RAMP UP PRETTY QUICKLY,
BUT THEY HAVE CHOSEN TO STICK
WITH THEIR PROGRAM OF VERY
INCREMENTAL INCREASES AS TIME
GOES FORWARD.
THAT'S ALL COMBINING TOGETHER
WITH THE UNCERTAINTY TO DRIVE UP
PRICES.
THE REALITY IS THAT -- THAT
THE -- SORRY.
WE HAVE BACKGROUND NOISE HERE.
THE -- THE REALITY IS THAT THE
FUTURES PRICES FOR OIL ARE
ACTUALLY MUCH LOWER THAN THE
CURRENT PRICES, SO THE OIL
MARKETS ARE EXPECTING THE PRICES
TO GO BACK DOWN IN THE -- IN THE
NEXT MONTHS.
>> I THINK THAT MIGHT BE THE CEO
OF AN OIL COMPANY HAVING HEARD
YOUR COMMENTS.
LET ME ASK YOU, YOU MAKE AN
INTERESTING POINT.
COUNTRIES THAT PRODUCE OIL, THEY
DON'T REALLY MIND THAT OIL
PRICES ARE HIGH RIGHT NOW.
115 BUCKS A BARREL IS TOO HIGH
BECAUSE PEOPLE START TO CHANGE
THE WAY THEY DRIVE AND THEY
START TO LOOK AT MORE
ENERGY-EFFICIENT CARS AND OIL AT
$100 A BARREL IT'S POSSIBLE TO
FRAC IN THE UNITED STATES AND
PROFITABLE FOR COMPANIES AND NOT
EVERYONE HAS THE RIGHT
MOTIVATIONS HERE, BUT THE LONGER
THIS WAR GOES ON AND THE HIGHER
OIL PRICES STAY, THE MORE
UNPOPULAR PROSECUTING THIS WAR
BECOMES FOR CITIZENS OF NATO
COUNTRIES OR THE EUROPEAN UNION.
GERMANY ALREADY HAS ISSUES WITH
THIS AND AMERICAN CONSUMERS WILL
GET FED UP WITH IT, AS WELL.
HOW DOES PRESIDENT BIDEN -- HE
CAN'T MANAGE THE PRICE OF OIL,
SO WHAT IS HE SUPPOSED TO DO?
>> WELL, I THINK, FRANKLY, I
THINK THERE IS A CASE TO BE MADE
FOR AMERICAN PRODUCERS TO
INCREASE PRODUCTION AND THE
FINANCIAL INSTITUTIONS WILL
START ENCOURAGING THAT AGAIN
BECAUSE IT TAKES QUITE A BIT OF
DEBT SERVICING TO -- TO DRILL IN
THE SHALE FORMATIONS.
THE PRESIDENT, OBVIOUSLY, HAS TO
BALANCE MANY, MANY FACTORS HERE
AND SURVEY THE PRICE AT THE PUMP
IS ONE OF THOSE.
AS YOU SAID, BY THE WAY, I THINK
THE 115 IS PROBABLY BEYOND THAT
WHICH EVEN THE OIL PRODUCERS
WOULD LIKE TO SEE IN A STEADY
WAY.
I BELIEVE SAUDI ARABIA HAS
ALWAYS SAID THAT SOMETHING
AROUND $80 A BARREL THEY WOULD
VIEW AS FAIR, SUPPORTING THEIR
ECONOMY AND NOT DRIVING DEMAND
DOWN TOO MUCH.
SO THERE'S GOING TO BE A BALANCE
IN THERE, BUT THE REALITY IS,
UNTIL THIS WAR STOPS, RUSSIA IS
HAVING A HARD TIME SELLING ITS
OIL AND IT EXPORTS PROBABLY 8
MILLION BARRELS A DAY OF CRUDE,
PLUS REFINED PRODUCTS AND THAT'S
A LOT OF OIL AND PRODUCTS TO
MAKE UP, AND IF THEY ARE SHORT
BY A FEW MILLION BARRELS, WELL,
WE ARE SEEING THE CONSEQUENCES.
>> SECRETARY, ALWAYS GOOD TO
TALK TO YOU.
THANK YOU FOR JOINING US AND