♪.
LARRY: SO, HOW DO WE GET BACK TO
ENERGY INDEPENDENCE IN AMERICA.
NOT OPEC, DEPENDENCE, ENERGY
INDEPENDENCE, SOMETHING TELLS ME
OPEC PLUS NOT REALLY INTERESTED
IN EXTREMIST CLIMATE POLICIES
BUT JOINING ME NOW, MIKE
SOMMERS, PRESIDENT AND CEO OF
THE AMERICAN PETROLEUM
INSTITUTE.
WELCOME BACK TO THE SHOW.
WHAT DO YOU THINK THESE GUYS ARE
DOING?
THERE IS NO MARKET FORCES TO DO
WHAT THEY’RE DOING.
PRICES WERE STABLIZING AROUND --
I KNOW THEY DIPPED DOWN TO THE
MID 60s ON THE BANKING CRISIS
BUT THAT PASSED AT LEAST FOR THE
MOMENT.
PRICES AROUND 75 BUCKS.
WHAT DO THEY THINK THEY’RE
DOING?
FROM A MARKET STANDPOINT, START
THERE, WE’LL GET TO THE POLICY
IN A MINUTE, FROM A MARKET
STANDPOINT, HOW DO YOU READ IT?
>> WELL, LARRY, I DO THINK THIS
IS CONSEQUENCE OF WHEN THE
UNITED STATES SACRIFICES
AMERICAN ENERGY LEADERSHIP.
AS YOU KNOW WE’RE STILL
PRODUCING 500,000 BARRELS FEWER
A DAY SINCE PRESIDENT BIDEN TOOK
OVER AND WE NEED TO GET AMERICAN
PRODUCTION BACK UP TO THE LEVELS
OF ABOUT 13 MILLION BARRELS A
DAY, WHICH WOULD PUT OUR DESTINY
IN OUR HAND, RATHER THAN IN THE
HANDS OF REGIMES THAT ARE
HOSTILE TO AMERICAN INTERESTS.
THAT’S THE REAL CONCERN THAT WE
HAVE.
THAT WE HAVE SACRIFICED THAT
AMERICAN ENERGY LEADERSHIP OVER
THE COURSE OF THE LAST COUPLE OF
YEARS.
LARRY: I MEAN, LOOK, WE’VE
INSULTED THE SAUDIS.
WE JUST INSULTED THEM,
REPEATEDLY INSULTED THEM.
AS FAR AS RUSSIA IS CONCERNED,
THEY’RE COCONSPIRATORS HERE,
DON’T WANT TO LET THEM OFF THE
HOOK BUT HIGH PRICES FAVOR THE
RUSSIANS.
SAUDIS HAVE A BUDGET I GUESS?
I DON’T THINK THEY LIKE AMERICA
ANYMORE.
TRUMP HAD GOOD DIPLOMACY WITH
THEM, GOOD DIPLOMACY WITH
ISRAEL, GOOD DIPLOMACY IN THE
MIDDLE EAST.
SEEMS TO ME BIDEN RIPPED THAT
APART, LIKE BAD DOMESTIC
POLITICS EQUALS BAD
INTERNATIONAL.
NOW THEY’RE COMING AT US.
THIS IS DIRECTED AT US?
>> FORTUNATELY THE HOUSE OF
REPRESENTATIVES JUST LAST WEEK
PUT FORWARD A BILL THAT WOULD
PUT THE UNITED STATES BACK IN
THE POLE POSITION, BACK IN
POSITION OF AMERICAN ENERGY
LEADERSHIP WHEN THE WORLD NEEDS
IT.
WE KNOW THIS WAR WILL NOT END
ITSELF.
WE NEED TO BE SUPPORTING OUR
ALLY IN UKRAINE, TO PUSH BACK ON
RUSSIAN AGGRESSION.
THE WAY TO DO THAT IS FOR THE
UNITED STATES AGAIN BE THE
NUMBER ONE SUPPLIER OF BOTH OIL
AND NATURAL GAS DURING A TIME OF
INTERNATIONAL CRISIS.
THAT MEANS PUTTING POLICIES IN
PLACE, THAT EMBRACE AMERICAN
ENERGY LEADERSHIP RATHER THAN
DIMINISH IT.
THAT IS OUR CONCERN OVER THE
COURSE OF THE LAST COUPLE YEARS,
DIMINISHMENT OF AMERICAN ENERGY
LEADERSHIP.
UNFORTUNATELY THE ONLY REASON WE
INCREASED PRODUCTION IN THE
UNITED STATES, IS ONE, BECAUSE
AMERICAN PRODUCERS CONTINUE TO
PRODUCE ON PRIVATE LANDS, NOT ON
PUBLIC LANDS.
THE ONLY REASON WE’RE ABLE TO
EVEN PRODUCE ON PUBLIC LANDS IS
BECAUSE OF AN ACT OF CONGRESS.
IT WAS CONGRESS HAD TO STEP IN
SAYING WE HAD TO HAVE LEASE
SALES IN THE GULF OF MEXICO, FOR
EXAMPLE.
UNFORTUNATELY WE HAD TWO
SUCCESSFUL LEASE SALES IN THE
GULF OF MEXICO, BUT AGAIN, THAT
WAS BECAUSE OF ACT OF CONGRESS,
NOT BECAUSE OF PRESIDENTIAL
LEADERSHIP.
WE NEED TO GET BACK TO THE POINT
WHERE THE EXECUTIVE BRANCH IS
PARTICIPATING IN AMERICAN ENERGY
DOMINANCE, AMERICAN ENERGY
INDEPENDENCE AND BEING A LEADER
AGAIN IN THE ENERGY SPHERE.
LARRY: MIKE SOMMERS THE HR.1,
LOWER ENERGY COST ACT,
QUARTERBACKED BY STEVE SCALISE,
COMING OUT OF THE HOUSE
REPUBLICANS, THAT IS THE RIGHT
MEDICINE IN YOUR JUDGMENT?
>> IT IS.
I THINK THERE IS ACTUALLY A
CHANCE TO GET THIS ENACTED THIS
YEAR.
I GIVE YOU AN EXAMPLE OF WHY.
THERE WERE FOUR HOUSE DEMOCRATS
THAT JUMPED ON BOARD SAID THIS
IS THE RIGHT MESSAGE FOR
AMERICA.
THERE ARE ALSO GOING TO BE A
COUPLE OF OPPORTUNITY FOR TO US
ATTACH LEGISLATION LIKE THIS,
WHETHER ON A DEBT LIMIT INCREASE
OR POTENTIAL GOVERNMENT SHUT
DOWN LATER IN THE YEAR.
WE THINK IT SHOULD BE STAND
ALONE.
WE THINK THE UNITED STATES
SHOULD BRING IT UP IMMEDIATELY,
HAVE OPEN DEBATE ABOUT THE
FUTURE OF AMERICAN ENERGY
INDEPENDENCE.
LET’S SEE WHERE THE SENATE IS ON
THIS BIG PIECE OF LEGISLATION.
THEY HAVE SHOWN LEADERSHIP IN
THE HOUSE OF REPRESENTATIVES.
IT IS TIME FOR THE REST OF THE
GOVERNMENT TO SHOW LEADERSHIP AS WELL.
WELL.
LARRY: MIKE SOMMERS I COULDN’T
REMEMBER KNOWING YOU ALL THESE
YEARS, DID YOU BY CHANCE GROW UP
IN CALIFORNIA?
>> I DIDN’T GROW UP IN
CALIFORNIA FORTUNATELY BECAUSE
THE WAY THEY ARE GOING NOW IS
THE EXACT OPPOSITE WAY THE
UNITED STATES SHOULD BE GOING.
TO PUT --
LARRY: TALK ABOUT THIS GAVIN
NEWSOM.
IT IS NOT PERSONAL.
I PERSONALLY LIKE GAVIN NEWSOM,
KNOW HIM FOR A WHILE, THIS PRICE
GOUGING BILL YOU WILL HAVE TO
HAVE DAILY REPORTS FROM GAS
STATIONS.
THEY INCREASED TAXES AND
REGULATIONS.
I GUESS CALIFORNIA THINKS IT
WILL LEAD THE COUNTRY BUT ALL IT
DOES IS CREATE HIGHER GASOLINE
PRICES, HIGHER OIL PRICES IN THE
STATE OF CALIFORNIA.
HOW DOES THAT HELP CONSUMERS,
HOW DOES HA HELP MOTORISTS, HOW
DOES THAT HELP ANYBODY, I DON’T
GET IT?
PRICE GOUGING REALLY, HAVE THEY
EVER PROVEN PRICE GOUGING?
>> GOVERNOR NEWSOM SHOULD LOOK
AT HIMSELF IN THE MIRROR, THE
STATE OF CALIFORNIA, THE
GOVERNMENT OF CALIFORNIA LED TO
HIGH GAS PRICES IN THE STATE OF
CALIFORNIA.
THEY HAVE ALMOST DOUBLE THE GAS
TAX OF ANY OTHER STATE IN THE
UNITED STATES.
THEY HAVE IMPOSED A REGIME OF, A
DIFFERENT KIND OF FUEL MIX THAT
THEY HAVE IN THE STATE THEY
MANDATE REFINERS TO REFINE TO.
IT IS POLICY AFTER POLICY.
THE PEOPLE THAT GET HURT THE
MOST HERE, LARRY ARE ACTUALLY
THE CONSTITUENT OF THE GOVERNOR.
IT IS POOREST PEOPLE WHO HAVE TO
COMMUTE TO WORK AND PAY THESE
HIGHER PRICES THAT DIDN’T HAPPEN
AS A ON SEQUENCE OF AMERICA’S
REFINERS.
THE BEST REFINERS IN THE WORLD
BUT BECAUSE OF THE STATE OF
CALIFORNIA AND LAWS THAT THEY
HAVE PASSED.
SO WHAT THEY SHOULD DO, THEY
SHOULD PUT TOGETHER AN
INDEPENDENT AGENCY TO LOOK AT,
REVIEW LAWS THEY HAVE PASSED
THAT INCREASED PRICES FOR THEIR
CONSTITUENTS.
LARRY: HAS ANYONE ACTUALLY, I
KNOW THE FEDERAL LEVEL HAS
INVESTIGATED SO-CALLED PRICE
GOUGING, HAS ANYONE EVER COME
UP, HUNDREDS OF THOUSANDS OF
LAWSUITS, HAS ANYONE EVER PROVEN
PRICE GOUGING?
>> IN FACT OVER 100 YEARS
FEDERAL GOVERNMENTS AND STATE
GOVERNMENTS LOOKED INTO THIS AND
THEY NEVER FIND ANY EVIDENCE OF
PRICE GOUGING.
WHAT THEY FIND IS GOVERNMENT
POLICIES HURTING AMERICAN
PRODUCTION AND INCREASING PRICES
ON AMERICAN CONSUMERS.
IT IS GOVERNMENT --
LARRY: NO.
YOU’RE ON A ROLL.
I WANT TO SAY, HOW CAN WE SAY
THIS FOR THE UMTEENTH TIME?
THESE OIL PRICES ARE
MARKET-DRIVEN.
THEN GASOLINE IS JUST A
DERIVATIVE OF THOSE MARKET
PRICES.
GASOLINE HAS COME DOWN BECAUSE
THE MARKET PRICE OF OIL.
THE TROUBLE I HAVE WITH SAUDIS
AND RUSSIA AND OPEC PLUS IS,
THEY ARE INTERFERING WITH
MARKETS AGAIN AND WE
UNFORTUNATELY BECAUSE OF OUR
FLAWED POLICIES IN THE WAR
AGAINST FOSSIL FUELS WE’RE
ALLOWING THEM, WE’RE ALLOWING
THEM TO INTERFERE WITH MARKET
PRICES.
THAT IS MY BIGGEST BEEF HERE.
>> LARRY, YOU HIT THE NAIL ON
THE HEAD OF THE AS YOU KNOW THIS
INDUSTRY IS A INDUSTRY OF MARKET
TAKERS, NOT MARKET MAKERS.
WE RESPOND TO THE PRICE OF
GASOLINE, PRICE OF OIL IS THE
MAIN DRIVER OF GASOLINE PRICES,
EXCEPT IN THE STATE OF
CALIFORNIA.
WHEN YOU IMPOSE A DIFFERENT FUEL
MIX, WHEN YOU IMPOSE SIGNIFICANT
TAXES ON CALIFORNIA CONSUMERS
YOU’RE GOING TO GET HIGHER
PRICES.
THAT IS CLEAR.
IT IS CLEAR TO ME THAT WHAT
GOVERNOR NEWSOM WANTS TO DO IS
CONTINUE TO INCREASE THOSE
PRICES, TO DRIVE THIS INDUSTRY
OUT OF THE STATE.
UNFORTUNATELY CALIFORNIA FOR A
LONG TIME HAS BEEN A MAIN
PRODUCING STATE IN THE UNITED
STATES.
THEY HAVE VAST RESOURCES, BOTH
OFFSHORE AND ONSHORE.
WANT TO CONTINUE TO DEVELOPING
THOSE.
THIS IS A STATE THAT HAS CHOSEN
TO MOVE AWAY.
IT IS ONLY TO THE DETRIMENT OF
CALIFORNIA CONSUMERS THAT THEY
ARE DOING THIS.
IT IS TIME FOR THE PEOPLE OF
CALIFORNIA TO JUST SAY STOP.
LARRY: YES, SIR.