NEIL: THAT IS PRETTY INCREDIBLE.
THANK YOU VERY MUCH,
GERRI WILLIS.
SO HOW HIGH DOES THIS ALL GET
AND WHAT CAN WE LOOK FORWARD TO
OR NOT?
LET’S GETTED READ OF MIKE
SUMMERS, AMERICAN PETROLEUM
INSTITUTE PRESIDENT AND CEO.
MIKE, WHAT ARE WE LOOKING AT
HERE?
>> ONE OF THE BIGGEST CONCERNS
WE HAVE THE AMERICAN PETROLEUM
INSTITUTE THERE ARE NOT
GOVERNMENT POLICIES TO MATCH THE
RHETORIC HERE IN TERMS OF HOW
WE’LL LOWER ENERGY COSTS OVER
THE LONG TERM.
WE’RE CONTINUING TO SEE RHETORIC
FROM THIS WHITE HOUSE THAT TALKS
ABOUT SOME OF THE THINGS THE OIL
AND GAS INDUSTRY NEEDS TO DO,
REALLY THEY SHOULD HOLD UP A
MIRROR AND LOOK AT THINGS THIS
ADMINISTRATION SHOULD DO TO
LOWER COSTS OVER THE LONG TERM
AND THAT INCLUDES OPENING UP
FEDERAL LANDS AND FEDERAL WATERS
TO MORE EXPLORATION AND
PRODUCTION.
BY THE WAY, ALSO, HOW DO WE
INCREASE REFINING CAPACITY IN
THIS COUNTRY TO MEET WHAT WE
EXPECT TO BE CONTINUING DEMAND
BY AMERICAN CONSUMERS?
NEIL: SO, MIKE, WHEN THE
PRESIDENT SAYS WE’VE OPENED UP
LEASES AND OPPORTUNITIES FOR THE
INDUSTRY TO PURSUE, THEY HAVEN’T
DONE SO, THEY SAY ONE THING AND
DO ANOTHER WHAT DO YOU SAY TO
THAT?
>> WELL IT IS HOGWASH.
IN FACT AT THIS POINT IN
PRESIDENT BIDEN’S TERM, IF THEY
HAD ALREADY DONE ALMOST 50 LEASE
SALES BOTH ONSHORE AND OFFSHORE
IN THE GULF OF MEXICO.
THIS ADMINISTRATION HAS DONE
EXACTLY ZERO.
NEIL: YOU’RE SAYING IN PRESIDENT
TRUMP’S TERM AT THIS POINT?
>> NO IN PRESIDENT OBAMA’S TERM
THEY HAD DONE 50.
NEIL: I THOUGHT YOU SAID --
>> DURING THE BIDEN
ADMINISTRATION THEY HAVE DONE
EXACTLY ZERO.
NEIL: GOT IT.
>> WHICH MEANS ALL OF THE
RHETORIC THEY’RE SAYING THAT
WHAT THEY’RE DOING TO GET MORE
PRODUCTION ON IS ABSOLUTELY
FALSE AND WE NEED A LONG-TERM
ENERGY STRATEGY IN THIS COUNTRY.
THAT INCLUDES OIL AND GAS.
YEAH, IT INCLUDES RENEWABLES TOO
BUT WE NEED A LONG-TERM APPROACH
RATHER THAN A SHORT-TERM
APPROACH.
WE’VE SEEN THE SHORT-TERM
APPROACH, MORE RELEASE FROM THE
STRATEGIC PETROLEUM RESERVE BUT
THE REAL CONCERN IS YOU’RE
DRAWING THAT STRATEGIC PETROLEUM
RESERVE AND YOU’RE NOT FILLING
IT BACK UP.
WE HAVE ENERGY RESOURCES HERE IN
THE UNITED STATES THAT WE CAN
DEVELOP QUICKLY IF WE GET THE
POLICIES RIGHT.
NEIL: SO, YOU KNOW, I THINK HE
WANTS TO UP IT TO TWO MILLION
BARRELS A DAY, FROM ONE MILLION
BARRELS A DAY, TAPPING RESERVE T
HAS DONE LITTLE TO CHANGE THE
OIL EQUATION AND DIRECTION.
IN FACT IT HAS GONE UP SINCE ALL
OF THIS STARTED.
I’M JUST WONDERING HOW HIGH IS
HIGH?
I KNOW IT’S A GUT CALL.
I KNOW IT’S A SUPPLY AND DEMAND
THING.
I KNOW WE HAVE THE WAR TO
CONTEND WITH, ABOUT LOCKING UP
SUPPLIES.
I GET ALL OF THAT.
I KNOW THE ADMINISTRATION
FINGERING YOU GUYS MAKING MONEY
HAND OVER FIST.
DIDN’T SAY OF WHEN YOU WEREN’T
MAKING MONEY HAND OVER FIST.
I WONDER WHERE YOU SEE THINGS
SETTLING NOW?
>> WHEN YOU LOOK AT THE ACTUAL
DATA, YOU’RE ACTUALLY GOING TO
SEE AMERICAN PRODUCTION GO UP BY
ABOUT A MILLION BARRELS A DAY
BEFORE THE END OF THE YEAR.
THEN WE EXPECT IN 2023 US TO
AGAIN HIT RECORD LEVELS OF
PRODUCTION.
SO AMERICAN PRODUCERS ARE
RESPONDING TO THESE PRICE ISSUES
THAT WE’RE SEEING RIGHT NOW.
AT THE SAME TIME THIS INDUSTRY
IS DEALING WITH THE SAME ISSUES
THAT A LOT OF OTHER INDUSTRIES
ARE DEALING WITH.
WE’RE DEALING WITH SUPPLY CHAIN
SHORTAGES.
API MEMBER CEO RECENTLY SAY TO
ME EVEN IF I WANTED TO PRODUCE
MORE TODAY, I CANNOT GET ACCESS
TO THE OIL RIGS.
WE’RE HAVING ISSUES WITH SUPPLY
CHAIN ON STEEL.
THERE ARE ISSUES WITH FRACK SAND
AS WELL.
SO THERE ARE REAL SUPPLY
CONSTRAINTS WITHIN THIS ECONOMY
HITTING THE OIL INDUSTRY OIL.
WE ALSO ARE HAVING WORKER
SHORTAGE ISSUES AS WELL.
SO, THINGS THAT ARE EXISTING
WITHIN THIS ECONOMY AND
INFLATIONARY PRESSURES, ARE
PRESSING, REALLY PRESSURING THE
AMERICAN OIL AND GAS INDUSTRY
ALSO.
BUT WE’LL GET PRODUCTION BACK
UP.
WE WANT TO REDUCE THESE PRICES
LONG TERM FOR AMERICAN CONSUMERS
BUT THERE ARE GOVERNMENT
INCENTIVES AND GOVERNMENT
POLICIES WE CAN PUT IN PLACE NOW
IF WE GET A LONG-TERM ENERGY
STRATEGY IN PLACE.
WE’LL BE ABLE TO REDUCE AMERICAN
PRICES AT THE PUMP QUICKLY IN MY
VIEW.
NEIL: WE’LL WATCH WHAT HAPPENED.
MIKE SUMMERS, THANK YOU VERY