MARIA: WELCOME BACK.
THE CEO OF CHEVRON MIKE WORTH
WARNING THE BIDEN ADMINISTRATION
AND ITS PLAN TO REFILL THE
STRATEGIC PETROLEUM RESERVE AT
$70 A BARREL, HE SAYS REFILLING
AT $70 A BARREL IS NOT
NECESSARILY A WISE MOVE AND THAT
IT SHOULD BE REFILLED ON A
STEADY BASIS.
MEANWHILE, OPEC PLUS IS
SCHEDULED TO MEET SUNDAY TO
DISCUSS THE NEXT PHASE OF
PRODUCTION POLICY.
JOINING ME NOW IS THE AMERICAN
PETROLEUM INSTITUTE PRESIDENT
AND CEO, MIKE SOMMERS.
IT’S GREAT TO SEE YOU THIS
MORNING.
THANKS VERY MUCH FOR BEING HERE.
FIRST I WANT TO GET YOUR TAKE ON
WHAT THE BIDEN ADMINISTRATION
WANTS TO DO AND WHAT MIKE WORTH
IS WARNING AGAINST.
THE ADMINISTRATION WANTS TO
REFILL THE STRATEGIC RESERVE
BECAUSE THEY’VE BEEN SELLING OIL
STEADILY.
WE’VE TALKED ABOUT THIS.
WE’RE AT DANGEROUSLY LOW LEVELS.
WE’RE AT LOWEST LEVEL SINCE 1984
IN THE STRATEGIC RESERVE.
THIS IS SUPPOSED TO BE AN
EMERGENCY STOCKPILE OF OIL AND
HE’S BEEN SELLING IT STEADILY AS
IF WE’RE IN SOME EMERGENCY HERE
BUT NOW HE WANTS TO REFILL IT AT
$70 A BARREL.
MIKE WORTH SAYS PROBABLY NOT
WISE TO REFILL IT AT SUCH
EXPENSIVE PRICES.
YOUR THOUGHTS?
>> WELL, AS WE’VE TALKED ABOUT
BEFORE, MARIA, THE STRATEGIC
PETROLEUM RESERVES HAS BECOME
THE STRATEGIC POLITICAL RESERVE.
WE HAVE GRAVE CONCERNS ABOUT HOW
IT HAS BEEN SO POLITICIZED.
THIS IS FOR EMERGENCY PURPOSES,
NOT TO LOWER GASOLINE PRICES
DURING A POLITICAL SEASON.
OF COURSE IT’S IMPORTANT TO MAKE
SURE WE HAVE THE PROPER RESERVES
IN THE SPR.
BUT I THINK DOING THIS
WILLY-NILLY, IN A WAY THAT
DOESN’T MAKE SENSE FOR THE
MARKET WE’RE IN, WE COULD BE
DEALING WITH ANOTHER MAJOR OIL
CRISIS IN THE NEXT FEW WEEKS
DEPENDING ON WHAT HAPPENS WITH
THE RUSSIAN SANCTIONS, DEPENDING
WHAT HAPPENS WITH HE OPEC.
SO WE NEED THAT RESERVE TO BE
WHERE IT IS BUT WE’RE ALSO REAL
CONCERNED, MARIA, ABOUT HOW LOW
IT HAS GONE, LOWEST LEVEL SINCE
1984.
NOT NECESSARILY BECAUSE OF
MARKET CONDITIONS BUT BECAUSE OF
POLITICAL CONCERNS.
SO THIS SHOULD BE A REAL CONCERN
FOR ALL AMERICANS.
MARIA: WELL, I MEAN, THE
ADMINISTRATION SAYS OKAY, WE’LL
STOP SELLING OIL WHEN OIL
REACHES $70 A BARREL.
WE’RE AT 81 RIGHT NOW AND MIKE
WORTH IS SAYING DON’T DO IT AT
70.
SO I MEAN, WHEN ARE YOU GOING TO
DO IT TO REFILL THIS?
WHAT WOULD BE THE PLAN, THE BEST
PLAN IN YOUR VIEW?
>> WELL, THE BEST PLAN IN MY
VIEW IS FOR US NOT TO CONTINUE
TO USE IT IN A WAY THAT IS FOR
POLITICAL PURPOSESES AND RATHER
DO IT IN A MARKET BASED WAY AND
IF THERE’S AN EMERGENCY, THAT’S
WHAT THIS IS FOR AND THE REAL
CONCERN IS THAT 1984 WHEN IT WAS
AT THE LEVELS THAT WE’RE IN
CURRENTLY, WE WERE USING 20%
LESS OIL SO TODAY AS THE ECONOMY
HAS CONTINUED TO GROW, WE’RE
GOING TO NEED MORE IN THE SPR,
OF COURSE.
LET’S DO THIS IN A WAY THAT
MAKES SENSE FOR THE MARKET, NOT
IN A WAY THAT DOES IT NOR
POLITICAL PURPOSES.
MARIA: I MEAN, LOOK, THIS
ADMINISTRATION WE KNOW CONTINUES
TO ATTACK BIG BUSINESS AND OIL
COMPANIES HAVE COME UNDER FIRE
FOR THE PROFITS THAT’S THEY
MAKE.
THE WHITE HOUSE CONTINUES TO
CLAIM THAT THERE ARE 9,000
UNUSED LEASES AND A THAT THE
LEASES ARE THERE AND THE OIL
COMPANIES ARE NOT USING THEM BUT
THE ADMINISTRATION FAILS TO
DISCUSS HOW TOUGH IT IS TO
ACTUALLY GET THE PERMITS.
SO TELL ME ABOUT THAT IN TERMS
OF WHAT BIDEN NEEDS TO
UNDERSTAND WITH THIS WAR ON
AMERICAN ENERGY.
FIRST WATCH THIS.
LISTEN TO THIS.
I WANT TO HE GET TO GET YOUR REA
>> THERE IS NO SHORTAGE OF
OPPORTUNITY FOR THESE COMPANIES
FROPRODUCE OIL HERE IN THE UNITE
STATES.
THEY’RE SITTING ON 9,000 UNUSED
BUT APPROVED DRILLING PERMITS.
>> THE PRESIDENT ISSUED 9,000
PERMITS FOR DRILLING ON U.S.
FEDERAL LAND 9,000 ARE BEING
UNUSED.
THERE ARE PLENTY OF
OPPORTUNITIES FOR OIL AND GAS
COMPANIES TO DRILL HERE IN THE
UNITED STATES.
MARIA: SO ARE THERE 9,000
PERMITS OR 9,000 LEASES?
BECAUSE I KNOW THE PERMITTING
PROCESS HAS A WHOLE HOST OF BARR
BUREAUCRACY IN IT.
I’M TOLD BY OIL CEOS THAT IT’S
HARD TO GET THOSE PERMITS.
>> YEAH, THIS IS SUCH A MYTH.
IT’S BEEN DEBUNKED MULTIPLE
TIMES.
THE ADMINISTRATION CONTINUES TO
USE IT.
THEY MAKE IT SEEM LIKE AS SOON
AS YOU GET A LEASE THAT YOU CAN
START DRILLING ON THAT PROPERTY.
THAT WOULDN’T BE THE
ENVIRONMENTALLY SOUND THING TO
DO YOU HAVE TO DO A LOT OF PREP
WORK BEFORE YOU ACTUALLY PRODUCE
ON THOSE FEDERAL LEASES.
INCLUDING GETTING MULTIPLE
PERMITS.
SO THIS IS A MYTH THAT THEY’VE
BEEN TROTTING OUT THERE FOR
MANY, MANY MONTHS.
WE ALL KNOW IT’S UNTRUE.
I WISH THEY WOULD STOP USING
THAT FALSE A STATISTIC.
THE TRUTH OF THE MATTER IS, ONE
OFTHE REASONS WHY PRODUCTION
HASN’T GONE UP THEY’RE USING THE
SPR FOR POLITICAL PURPOSES.
THEY’RE FLOODING THE MARKET WITH
OIL RIGHT NOW, RATHER THAN
LETING THE MARKET WORK AND
PRODUCERS TO CONTINUE TO PRODUCE
MORE BASED ON MARKETS THEY USED
THE SPR IN A POLITICAL MANNER
AND THAT HAS PUT DOWNWARD
PRESSURE ON THE AMOUNT OF
PRODUCTION THAT’S OCCURING IN
THE UNITED STATES.
MARIA: SO JUST TO BE CLEAR, WE
HEARD JOHN KIRBY, STATE
DEPARTMENT SPOKESPERSON AND
KARINE JEAN-PIERRE, JOE BIDEN’S
SPOKESPERSON, BOTH USE THE WORD
PERMITS, 7,000 PERMITS.
BUT THAT’S NOT ACTUALLY THE
CASE, IS IT?
IT’S 7,000 LEASES, AND THEN HAVE
YOU TO GET THE PERMIT.
>> THAT IS NOT THE CASE.
MARIA: THEY JUST MISLED US BY
SAYING 7,000 PERMITS.
>> THAT’S EXACTLY RIGHT.
I HOPE THE FACT CHECKERS OUT
THERE ACTUALLY CHECK THE FACTS
ON THIS BEFORE THEY CONTINUE TO
USE THIS FALSE STATISTIC.
MARIA: I’M LISTENING TO IT.
I’M SAYING WAIT A SECOND, THERE
AREN’T 7,000 PERMITS.
THERE’S 7,000 LEASES, THEN YOU
HAVE TO GO THROUGH THE
BUREAUCRACY OF GETTING A PERMIT
SO THEY JUST LIED TO THE
AMERICAN PEOPLE BY SAYING THERE
ARE 7,000 PERMITS.
>> THAT’S EXACTLY RIGHT.
AND I THINK THAT WE NEED TO
CONTINUE TO STATE THE FACTS HERE
AND WE KNOW THAT THIS
ADMINISTRATION HAS COMPLETELY
SLOWED DOWN THE PERMITTING
PROCESS HE’S ON BOTH FEDERAL
LANDS AND FEDERAL WATERS AND A
THIS ISN’T JUST A LANDS ISSUE AS
I SAID.
THIS IS AN OFFSHORE ISSUE AS
WELL.
WE GET ALMOST 20% OF AMERICAN
OIL FROM THE GULF OF MEXICO.
THEY STILL HAVEN’T PUT IN PLACE
A FINE YEAR PLAN THAT WOULD
ALLOW US TO CONTINUE TO LEASE IN
THE GULF OF MEXICO AND PRODUCE
IN THIS HIGHLY PROLIFIC REGION.
I THINK THE ADMINISTRATION
SHOULD STOP TALKING ABOUT THESE
FALSE STATISTICS AND INSTEAD GET
THESE PERMITS APPROVED SO WE CAN
CONTINUE TO PRODUCE BOTH ON
FEDERAL LANDS AND IN FEDERAL
WATERS.
MARIA: I MEAN, IT’S
UNBELIEVABLE TO HE ME.
RIGHT THERE IS AN INDICATION OF
THEY ACTUALLY HAVE NO IDEA WHAT
THEY’RE DOING AND THEY HAVE NO
IDEA WHAT THEY’RE TALKING ABOUT
WHEN IT COMES TO OIL PRODUCTION.
BECAUSE THEY JUST SAID THERE
WERE 7,000 PERMITS AND THERE ARE
NOT 7,000 PERMITS.
THERE MIGHT BE 7,000 LEASES BUT
THE LEASE DOES NOT GIVE YOU THE
PERMIT TO DRILL.
SO I MEAN, YOU KNOW, THIS IS
THE ISSUE WHEN YOU ACTUALLY HAVE
PEOPLE RUNNING THE GOVERNMENT
THAT HAVE NEVER BEEN IN BUSINESS
THAT ACTUALLY HAVE NO IDEA ABOUT
THE OIL INDUSTRY AND YOU HOW HOW
IT WORKS.
>> THAT’S EXACTLY RIGHT.
RIGHT NOW, IN THE UNITED STATES,
WE ARE OPERATING AT THE HIGHEST
LEVEL ON THOSE LEASES RIGHT NOW
THAN WE EVER HAVE.
SO THE FACT THAT THEY’RE
CONTINUING TO TOUT THIS
STATISTIC WHICH WE ALL KNOW IS
UNTRUE I THINK SHOWS THAT THEY
DON’T UNDERSTAND THIS BUSINESS
AND THAT WE NEED TO CONTINUE TO
PRODUCE HERE IN THE UNITED
STATES.
THE AMERICAN PETROLEUM INSTITUTE
HAS A PLAN TO ENCOURAGE MORE
PRODUCTION HERE.
IT’S CALLED THE 10 AND 22 PLAN
THAT WE’VE BEEN TALKING ABOUT
SINCE JUNE.
WE HOPE THEY WOULD START
ADOPTING THAT.
WE HOPE HOUSE REPUBLICANS ADOPT
THAT PLAN WHEN THEY GET THE
MAJORITY IN THE HOUSE OF
REPRESENTATIVES AS WELL.
MARIA: WE WILL BE WATCHING
THAT.
MIKE, IT’S GREAT TO GET YOUR
TAKE.
IT’S AMAZING.
I’M SITTING HERE, LISTENING TO
THESE SOUND BITES AND THEY JUST
-- RIGHT THERE, YOU KNOW,