average across the state is for
66 always seems to be a couple
pennies less than us. With gas prices soaring globally.
prices soaring globally.
We want to find out more about
why. Why is this happening in
joining us to the talk talk
about it is and blunt Sarah executive director of the Royal
executive director of the Royal
Flow Energy Institute at TCU.
And Good Morning. How are you
doing?
>> I’m doing great. How are
you? Wonderful. Thanks so much
for spending a few minutes with us on our new streaming here
us on our new streaming here
that you recently returned from
Europe where you met with the
international Energy Agency,
the U.S. Department of Energy. What what did you learn from
What what did you learn from
that experience and
>> well, I was there with our
students we we’re primarily
talking about energy security
and the effects of the invasion on Ukraine, from Russia and
on Ukraine, from Russia and
what that will mean that the
security around the world.
And we’re obviously feeling
some of that at the pump.
You’re talking about those prices in our average high here
prices in our average high here
in Texas being a little below
$5 and if our friends over in
Europe can only enjoy those
prices. I think they’re they’re averaging at this point as of
averaging at this point as of
this morning, looks like almost
$8 a gallon So it’s they’re
feeling the brunt more than
we are. That’s for sure.
All that it was. It wasn’t very
lightning time and to get to hear directly from the people
hear directly from the people
on the ground in representing
the United States trying to
negotiate what the sanctions look like. That’s going to mean
look like. That’s going to mean
impact for all says how we can
contribute to help solve energy
security in Ukraine. In back to
a place where energy
sustainable, affordable and
most important what you’re liable.
>> From your experience.
I mean, how much of this is.
>> Blocking Russian oil from
the market. I mean, is that the is that the biggest part of
is that the biggest part of
this increase?
>> It’s into the yeah. I would
say yes, you’re correct it’s
the biggest piece I don’t we
can’t forget too. A couple other things that demand went
other things that demand went
drastically of after COVID more
than what anybody expected.
There are supply has not been
increased and then we have a lack of capital investment in
lack of capital investment in
need oil and gas sector since
2014, when we had our last big
was and that the big
multinational companies, the independence, everybody started
independence, everybody started
to prioritize getting dividends
back to their shareholders and
putting less capital into the
infrastructure necessary to be able to to grow our supply.
able to to grow our supply.
And now with the demand is up
like it has been and you
have a an international crisis
like Ukraine and vignettes that
then all of those things are
going to feed into these price
increase. >> I feel like in Houston.
>> I feel like in Houston.
We always kind of have this.
You take the good with the bad
situation because our economy
is so reliant on energy.
So I guess it’s good for some of those businesses may be
of those businesses may be
right. But obviously for the
for the average person, Putin
gas in their tank or even the
price of goods and what not the
right sites. Really. The 2 had a coin.
a coin.
>> Yeah, no question. I think
you could ask anybody in the
sector that has been a part
of the game in Boston with oil
and gas industry and they would
they would then, you know, all day long, probably say we we
day long, probably say we we
would rather not be so ball
don’t mean rather than the
price of the barrel of oil be
something that that is consistent thing. We can build
consistent thing. We can build
around it and, you know,
supported strategize because it
is so volatile. It’s moments
like this that allowed him to
survive during the boss.
You can’t. We can’t forget that. It’s the most volatile
that. It’s the most volatile
commodity in the world. I mean,
it’s a global commodity son
matter. What’s in now are
reliving it right with Ukraine.
We’re going to specifically,
you know that because now we don’t have enough, we don’t
don’t have enough, we don’t
have enough supply and most
valuable commodities in the
world. And yet we can’t forget
the industry that that is able
to to manage that and will
businesses around it has to
probably have some of these
>> So the volatility, I guess
maybe it’s safe to say is more
amplified with Russian oil off
the market.
>> Yes, very much so. You know,
you’ve got to think about 40.
Well, first of all, 40%, I think Russia’s GDP and where
I think Russia’s GDP and where
they operate under is in
specific to their oil and gas
in a minute, we put sanctions
on that from a moral perspective and we need you
perspective and we need you
just said and 95 by the end of
this year, they will, you know,
not take 90% will be able to
cut off 90% of Russian oil and
gas in the urine that
significant. So that’s going to have a pretty big impact,
to have a pretty big impact,
long Russian with their
ability, you know, to to get
things done and operate.
We’ll have another
international crisis. And it’s
probably because they’re
they’re they’re going to cause, you know, citizens not going be
you know, citizens not going be
able to get their basic needs
to do.
So. Yeah, I think you did this
all certainly amplified by
this.
>> What what about the outlook for the rest of the year?
for the rest of the year?
I mean, this is obviously a
process to sort of cut down and
cut back for the European
Union’s appetite for Russian
oil are going to cut that back
slowly. But politically, anything can shift at any time.
anything can shift at any time.
So I maybe it’s hard to
predict. But but what are you
hearing? The predictions are
for the rest of the year.
>> Now, no one is turning not
very optimistic about there
being any kind of significant
in in what’s happening that
role. Russia and Ukraine, even
in a perfect world, we had a
regime change tomorrow there and the invasion stopped.
and the invasion stopped.
I’m working and it’s going to
take 6 months to a year at a
minimum for us to start to see a difference. A man has
a difference. A man has
significant at the palm and
with that barrel oil across the
globe, that just it takes a
while that marketed to balance
back out. Yeah.
>> Always a always quick to