ACCESS TO ACTUALLY SEE WHAT’S GOING IN THESE FACILITIES AS
WELL.
WELL. KRISTIN FISHER, THANK YOU SO
MUCH.
MUCH. >>> WE ARE ALSO FOLLOWING THE
STORY IN THE SUEZ CANAL BECAUSE
TRAFFIC IS NOW RESUMING AS THE
SHIP STUCK SINCE EARLY LAST WEEK
HAS BEEN FREED.
FORMER SHELL OIL PRESIDENT JOHN
HOFMEISTER JOINS ME NOW.
YOU FREE THE SHIP, YET THERE’S
400 SHIPS BEHIND IT THAT HAVEN’T
BEEN ABLE TO PASS THROUGH THE
CANAL, AND THAT’S GOING TO TAKE
SOME TIME AND THROW THE WHOLE
SUPPLY CHAIN OFF, CORRECT?
>> YES, I’M AFRAID SO.
BUT IT WILL UNTANGLE ITSELF.
I THINK THERE ARE PRETTY GOOD
COMMUNICATIONS WITH THE
AUTHORITIES, AND I THINK IT WILL
UNTANGLE ITSELF IN, LET’S SAY,
THE NEXT WEEK OR SO.
I DON’T THINK IT’S GOING TO TAKE
MUCH LONGER THAN THAT, IN MY
VIEW, UNLESS ANOTHER MISHAP
OCCURS.
OCCURS. THAT’S WHERE WE COULD GET
BOTTLED UP AGAIN.
BUT LET’S HOPE THAT THEY’VE GOT
IT UNDER CONTROL.
JACKIE: LETET’S HOPE THEY DO.
OBVIOUSLY, WHEN IT COMES TO
TRANSPORTING THINGS THROUGH THE
CANAL, WE ARE TALKING ABOUT
CONSUMER GOODS BUT ALSO OIL A AN
PETROLEUM PRODUCTS.
PETROLEUM PRODUCTS. WE’VE BEEN FOLLOWING THE RISE IN
GAS PRICES FOR A NUMBER OF
REASONS, BUT THIS ISN’T GOING TO
HELP US EITHER, IS IT IN.
>> NO.
>> NO. I THINK WE ARE HEADED HIGHER
STRUCTURALLY FOR ENERGY PRICES.
I THINK OVER THE NEXT 2-3 YEARS,
ACTUALLY, WE’RE GOING TO SEE
STRUCTURALLY HIGHER PRICES.
THE INDUSTRY HAS A LONG WAY TO
GO TO RECOVER ITS FINANCIAL
CREDIBILITY AND ITS RETURN TO
INVESTORS WHICH HAS BEEN HURT
OVER THE LAST, LET’S SAY, 6-8
YEARS BECAUSE OF, I THINK, BAD
JUDGMENTS MADE BY MOHAMED BIN
SALMAN BACK IN 2014, OTHER BAD
JUDGMENTS WITH RESPECT TO OPEC
INCREASING SUPPLIES WHEN THEY
SHOULD HAVE BEEN DECREASING
SUPPLIES.
SUPPLIES. IT’S REALLY HARMED THE FINANCIAL
STORY OF THE ENERGY INDUSTRY,
AND IT’S REALLY HARMED
INVESTORS.
INVESTORS. AND SO WITHOUT STRUCTURALLY
HIGHER PRICES FOR A LONGER
PERIOD OF TIME, WE HAVE AN
INDUSTRY THAT DOESN’T HAVE THE
CAPITAL TO REINVEST IN ITSELF
FOR THE GROWTH OF THE FUTURE.
AND IF PEOPLE THINK WE’RE
GETTING OUT OF THE OIL AND GAS
BUSINESS ANYTIME IMAGINABLE,
THEY HAVE ANOTHER THING COMING.
IT’S JUST NOT GOING TO HAPPEN,
JACKIE.
JACKIE. WE’RE INTEGRATED GLOBALLY IN THE
USE OF THIS ENERGY, AND GLOBALLY
IT’S 85% OF THE ENERGY WE
CONSUME, FOSSIL ENERGY.
JACKIE: YEAH.
JACKIE: YEAH. >> SO YOU DON’T JUST UNWIND THAT
IF IN THE PERIOD OF A COUPLE
YEARS.
YEARS. JACKIE: WELL, THAT’S THE THING
THING THE BIDEN ADMINISTRATION
DOESN’T SEEM TO UNDERSTAND.
INVEST IN ENERGY BOTH WAYS,
RIGHT IN FIND THAT DELICATE
BALANCE.
BALANCE. JOHN, I WANT YOU TO CLEAR UP
THIS POINT FOR ME.
WE KNOW GAS PRICES RISE MUCH
FASTER THAN THEY FALL.
SO THE AVERAGE RIGHT NOW, $2.86
FOR A GALLON, AND WE’RE AT THE
END OF MARCH.
YOU KNOW SEASONALLY THEY DRIVE
BY JULY 4TH BECAUSE OF THE
SUMMER DRIVING SEASON, AND WE’RE
GOING TO BE REOPENING.
LAST YEAR AT THIS TIME, $2.02,
AND THE PANDEMIC IMPACT HADN’T
EVEN BEEN REALIZED TO TAKE THEM
DOWN.
DOWN. SO WE’RE WITH TALKING ABOUT
ALMOST A DOLLAR DIFFERENCE RIGHT
NOW, POSSIBLY $1.50-2 IN THE
SUMMER.
SUMMER. THIS HURTS CONSUMERS.
>> YES.
>> YES. EVENTUALLY HIGHER PRICES SLOW
DOWN THE GLOBAL ECONOMY, SLOW
DOWN THE U.S. ECONOMY.
AND WHEN YOU HAVE NEGATIVE,
NEGATIVE OUTLOOK ON THE INDUSTRY
FROM THE ADMINISTRATION WHICH
SETS POLICY, THEY’RE GOING TO
MAKE ACCESS MORE RESTRICTED.
SAME MISTAKE THAT THEY MADE BACK
IN THE OBAMA EARLY YEARS WHEN WE
DIDN’T OPEN UP SOON ENOUGH, AND
IT WASN’T UNTIL, YOU KNOW, LATER
OBAMA REALIZED HE’D BETTER LET
SHALE GO, MAKE IT HAPPEN BECAUSE
THE GAS PRICES WERE REALLY
HOLDING BACK THE RECOVERY FROM
THE GREAT RECESSION.
PEOPLE DON’T REMEMBER THIS, BUT
WE HAD $4 AND $5 GAS PRICES A
COUPLE OF YEARS AFTER THE GREAT
RECESSION WHICH JUST HELD BACK
ECONOMIC GROWTH.
ECONOMIC GROWTH. LOWER ENERGY COSTS YIELDS HIGHER
ECONOMIC GROWTH --
JACKIE: YEAH.
JACKIE: YEAH. >> -- YIELDS MORE JOBS.
I MEAN, IT’S JUST -- YES, WE
HAVE TO ADDRESS CLIMATE CHANGE,
BUT IN TERMS OF ADDRESSING
CLIMATE CHANGE, LET’S BUILD THE
NEW SYSTEM BEFORE WE DISMANTLE
THE EXISTING SYSTEM.
JACKIE: YEAH.
JACKIE: YEAH. YOU POINT TO THAT OTHER SPIKE IN
ENERGY AND GAS PRICES.
I REMEMBER SPECIFICALLY IT WAS
PAINFUL AT THE PUMP AND, JOHN,
PEOPLE ARE STARTING TO FEEL IT
NOW.
NOW. HOPEFULLY, YOU KNOW, HOPEFULLY
IT WON’T GET WORSE, BUT THE FEAR