SEEN ENERGY PRICES HAVE DECLINED
SHARPLY FROM THEIR HIGHS AND
AMERICAN CONSUMERS ARE PAYING
FAR LESS AT THE PUMP AND SO
THAT’S GOING TO BE OUR FOCUS.
>> AND TAKE A LOOK AT THE
AVERAGE IN CALIFORNIA.
IT’S HELPING DRIVE UP THE
NATIONAL AVERAGE FOR THE SECOND
WEEK IN A ROW MEANWHILE YOU HAVE
OPEC LOOKING TO CUT PRODUCTION,
SOME ANALYSTS SAY OIL COULD CLIMB TO $100 A BARREL ONCE
CLIMB TO $100 A BARREL ONCE
AGAIN, THE HEAD OF SAUDI RAMCO
BECAUSE THE WORLD SUPPLY IS SO
TIGHT. MARIA.
MARIA: GOOD GOOD
MARIA: GRADY TRIMBLE.
>> FIRST OF ALL, IF THE MINISTER
FROM SAUDI ARABIA THINKS OIL
SUPPLY IS SO TIGHT THEY SHOULD
NOT BE CONSIDERING UP TO A
MILLION BARREL A DAY CUT IN
MEETING TOMORROW.
IT IS TRUE THAT SUPPLIES ARE
TIGHT.
WE ARE SEEING INVENTORIES AROUND
THE WORLD CONTINUE TO DECLINE.
IN FACT, GASOLINE INVENTORIES ON
THE WEST COAST ARE AT TEN-YEAR
LAW AND MIDWEST GASOLINE
INVENTORIES ARE AT 30-YEAR LOW.
MARIA: DAGEN, JUMP IN.
WHAT ABOUT THE POLICY RESPONSE?
I WAS LOOKING DOWN IN FLORIDA AS
ONE EXAMPLE AND THIS WAS A
PLANNED GASOLINE TAX HOLIDAY,
BUT I WENT INTO EFFECT IN -- ON
OCTOBER THE FIRST IN FLORIDA AND
WHEN YOU’RE -- WHEN YOU HAVE
TIGHT SUPPLIES PARTICULARLY IN
FLORIDA AFTER HURRICANE IAN AND
RUN AWAY INFLATION, HOW DOES --
ENCOURAGING AND GIVING
INCENTIVES TO PEOPLE TO USE MORE
GASOLINE, HOW DOES THAT MAKE ANY
POLICY SENSE?
>> WELL, I AGREE WITH YOU DAGEN.
WHAT IT DOES IS PROVIDE
TEMPORARY RELIEF TO THE CONSUMER
BUT IT DOES NOTHING AS FAR AS
GETTING MORE OIL AND NATURAL GAS
OUT OF THE GROUND AND AS WE LOOK
AROUND THE WORLD, THERE IS AN
ENERGY CRISIS AND WE NEED TO
HAVE POLICIES AROUND THE WORLD
THAT DO INCLUDE ADDITIONAL CRUDE
OIL AND NATURAL GAS PRODUCTION
IN ADDITION TO RENEWABLES EXCEPT
THAT THE RENEWABLES TAKE MANY,
MANY YEARS TO COME ONLINE
WHEREAS WE KNOW WE CAN GET MORE
OIL AND NATURAL GAS OUT OF THE
GROUND IN THE NEXT FEW YEARS.
MARIA: WELL, ANDY, THE WHITE
HOUSE DOES NOT SEEM CONCERNED
ABOUT TOMORROW’S OPEC PLUS
MEETING.
OPEC POTENTIALLY WILL ANNOUNCE
CUTTING PRODUCTION BY A MILLION
BARRELS A DAY.
THE WHITE HOUSE PRESS SECRETARY
KARINE JEAN-PIERRE SAID THE
FOCUS IS LOWERING PRICES FOR THE
AMERICAN CONSUMER INSTEAD BUT
THAT’S NOT WHAT CUT IN
PRODUCTION WOULD DO.
WHAT ARE YOU EXPECTING FROM THE
MEETING TOMORROW?
>> WELL, I DO EXPECT THEY ARE
GOING TO ANNOUNCE A MILLION
BARREL A DAY CUT IN PRODUCTION
QUOTA BUT ONE THING WE SHOULD
KEEP IN MIND THAT THERE ARE
3.6 MILLION BARRELS A DAY BELOW
PRODUCTION QUOTA SO I BELIEVE
THAT THE ACTUAL LOSS OF
PRODUCTION IS GOING TO BE CLOSER
TO 300,000 BARRELS A DAY AND
THAT’S GOING TO BE BORN BY SAUDI
ARABIA AND THE UNITED ARAB
EMIRATES AS MOST OF OPEC PLUS
JUST SIMPLY HASN’T BEEN ABLE TO
RESTORE PRODUCTION SINCE THE
PANDEMIC BEGAN.
MARIA: WHAT ABOUT THE WEST
COAST, HIGH GASOLINE PRICES NOT
AFFECTING -- THE AVERAGE PRICE
OF GAS IN ILLINOIS IS 4.21.
WHY ARE WE SEEING DIFFERENCES
ACROSS THE COUNTRY?
>> WELL, FIRST IF WE LOOK AT THE
WEST COAST AS GRADY POINTED OUT.
WE HAD A NUMBER OF REFINERIES
THAT HAD BOTH PLANNED AN
UNSCHEDULED OUTAGES.
THE GOOD NEWS IS THAT BY MID OF
OCTOBER, 3 OF THOSE REFINERIES
ARE GOING TO RETURN TO SERVICE.
IN THE MIDWEST WE ACTUALLY HAD A
FIRE AT THE LARGEST REFINERY
OUTSIDE OF THE CHICAGO AREA AND
THEN EXPLOSION AT A REFINERY IN
TOLEDO, OHIO THAT WILL KEEP
REFINERY DOWN UNTIL NEW YEAR.
SUPPLIES ARE VERY TIGHT IN
CHICAGO, RESUPPLY CAN COME FROM
THE GULF COAST EXCEPT IT TAKES
SEVERAL WEEKS TO GET THERE
THROUGH THE PIPELINE SYSTEM AND
AS A RESULT WE HAVE SEEN BOTH IN
ILLINOIS AND IN OHIO PRICES HAVE
BEEN SPIKING OVER THE LAST
SEVERAL WEEKS.
MARIA: AND DO YOU EXPECT THE
SPIKE TO CONTINUE AS THE WEATHER
GETS COLDER?
>> WELL, I DON’T THINK IT WILL
AND GASOLINE PRICES BECAUSE THE
DEMAND IN THE MIDWEST GOES DOWN
PRECIPITOUSLY AS WE GET INTO
DECEMBER BUT THE ISSUE IS THAT
CRUDE OIL PRICES ARE RISING,
GASOLINE AND DIESEL PRICES ARE
GOING UP AS REFINERIES CONTINUE
WITH THEIR MAINTENANCE SEASON
AND UNFORTUNATELY WE ARE NOT
GOING TO SEE MUCH RELIEF IN
GASOLINE PRICES ON A NATIONAL
LEVEL OVER THE NEXT FEW WEEKS.
MARIA: ALL RIGHT, WE WILL LEAVE