SAY THE LATEST BY FAR FROM THE
LAST, LET’S GO TO THE FORMER
U.S. SECRETARY OF ENERGY UNDER
PRESIDENT TRUMP.
SECRETARY, ALWAYS GREAT HAVING
YOU.
WE STILL DON’T KNOW WHAT THE
SAUDIS ARE GOING TO DO ON
THE OIL PRODUCTION FRONT.
OBVIOUSLY, WE HAVE PRESSED THE
SAUDIS TO PRODUCE A LITTLE
MORE.
NOW, THE ADMINISTRATION IS
TELEGRAPHING OR I DON’T KNOW IF
THEY ARE TELEGRAPHING WHAT THE
SAUDIS HAVE TELEGRAPHED TO
THEM THAT THAT WON’T BE
FORTHCOMING.
WHAT DO YOU MAKE OF THAT?
>> WELL, NEIL, IT’S GREAT TO
SEE YOU AGAIN.
I THINK WHAT’S HAPPENING HERE,
AT LEAST TO SOME DEGREE, IS THE
DOWNPLAYING OF EXPECTATIONS.
I BE SURPRISED IF THE SAUDIS DO
ANYTHING OUTSIDE OF THE CONTEMPT
OF OPEC AND OPEC PLUS.
THEY ALWAYS AGREED TO SOME
PRODUCTION NUMBERS.
THERE IS A MEETING COMING UP IN
JUST A FEW WEEKS SO I WOULD
EXPECT ANY DECISIONS ON
PRODUCTION WOULD COME AS A
RESULT OF THAT MEETING, NOT AS A
RESULT OF ANY CONVERSATION THAT
THEY MAY HAVE WITH THE PRESIDENT
TODAY, BUT I THINK THE LARGER
QUESTION HERE, NEIL, IS NOT SO
MUCH THE ACTUAL PRODUCTION
NUMBERS COMING FROM OPEC AND
OPEC PLUS, IT’S WHAT YOU DO WITH
THE OIL.
ONE OF THE CHALLENGES THAT WE
HAVE IN THE WORLD TODAY AND IN
THE U.S. IN PARTICULAR IS OUR
ABILITY TO REFINE THE PRODUCT
INTO GASOLINE, DIESEL, AND OTHER
PRODUCTS, THAT IS REALLY DRIVING
THE CONSUMER INTEREST IN ALL OF
THIS.
FOLKS OF COURSE PAY ATTENTION TO
THE PRICE OF CRUDE OIL BUT WHAT
THEY REALLY PAY ATTENTION TO IS
THE PRICE OF REFINED GASOLINE AT
THE PUMP EVERYDAY.
SO WE OUGHT TO BE THINKING ABOUT
THE INFRASTRUCTURE THAT’S
NECESSARY, THAT IS REQUIRED,
FRANKLY, TO REFINE THE PRODUCT
AND ENSURE THAT IT MEETS THE
MARKET NEEDS AND IT GETS TO
THE RIGHT MARKETS.
IF I WERE TO SUGGEST A COURSE OF
ACTION FOR THE PRESIDENT, FOR
THE ADMINISTRATION TODAY, BE
TO FOCUS ON INFRASTRUCTURE
HERE IN THE UNITED STATES AND
ENSURE THAT WE HAVE WHAT WE NEED
NEIL: YOU KNOW WHAT’S
INTERESTING?
TODAY’S RISE IN OIL PRICES
NOTWITHSTANDING, SECRETARY, I
THINK WE’RE UP A LITTLE NORTH OF
$98 A BARREL WE ARE FIND OF BACK
TO WHERE WE WERE BEFORE RUSSIA
INVADED THE UKRAINE, AND I’M
WONDERING EVERYTHING THAT HAS
SORT OF SPIRALED OUT OF CONTROL
FROM THE PRICES TO GAS PRICES,
TO FOOD, PRICES FOR EVERYTHING,
BUT THAT PART HAS SLID A LITTLE
BIT, AGAIN TODAY’S GAINS
NOTWITHSTANDING ON THE NOTION
THE ECONOMY IS GOING TO SLOWDOWN
YET REMINDERS TODAY AT LEAST
GIVEN STRONG RETAIL SALES NUMBER
S AND STRONG AMAZON SALE
NUMBERS FROM THEIR BACK TO BACK
PRIME DAYS, THAT MIGHT NOT BE
THE CASE.
THE CONSUMER COULD BE STILL VERY
VERY STRONG.
HOW DO YOU SEE THIS WHOLE SUPPLY
-DEMAND EQUATION GOING?
>> WELL, I THINK THERE IS SOME
FAIR AMOUNT OF CONCERN,
OBVIOUSLY, WITH THE FEDERAL
RESERVE AND WITH OTHERS ABOUT
THE FUTURE ECONOMY, AND SOME
SLOWDOWN HAS OCCURRED.
WE’RE STARTING TO SEE SOME
DEMAND DESTRUCTION IN THE
MARKETPLACE.
I MEAN $4.50 OR $5 FOR GASOLINE
IS HISTORICALLY HIGH SO FOLKS
ARE GOING TO FEEL THE IMPACT OF
THAT VERY STRONGLY, BUT I DO
THINK AS WE LOOK FORWARD, AGAIN,
I’LL REITERATE THIS POINT.
IT’S IMPORTANT THAT WE TAKEAWAY
THE BOTTLENECKS IN THE SYSTEM.
IT’S NOT SIMPLY THE PRODUCTION
OF OIL THAT MATTERS IN THIS CASE
WE KNOW HOW TO PRODUCE OIL IN
THE UNITED STATES.
WE HAVE BECOME THE LARGEST
PRODUCER OF OIL & GAS.
THE PRODUCTION QUESTION IS NOT
REALLY THE ONE THAT WE NEED TO
FOCUS ON.
IT’S REALLY THE INFRASTRUCTURE
QUESTION.
DO WE HAVE ENOUGH PIPELINE TO
GET THE PRODUCT TO MARKET
EFFICIENTLY?
DO WE HAVE ENOUGH REFINERS IN
THE UNITED STATES AND AROUND THE
WORLD TO ALLOW THE PRODUCT
TO BE PRODUCED OR REFINED INTO
FINAL CONSUMABLE PRODUCTS?
RIGHT NOW, WHEN WE LOOK ACROSS
THE UNITED STATES, WE SEE
REFINING CAPACITIES RUNNING
ABOVE 95% AND 97%, WHICH IS, YOU
KNOW, HIGH, BUT WHAT WE ALSO
MUST REMEMBER IS THAT WE HAVE
FEWER REFINERIES, SO OF COURSE
THEY’RE RUNNING AT VERY HIGH
LEVELS.
WE NEED TO EXPAND OUR ABILITY TO
DO THOSE THINGS, AND AGAIN,
FOCUS ON INFRASTRUCTURE AS WELL
AS PRODUCTION.
NEIL: YEAH, YOU CAN BOOST
PRODUCTION ALL YOU WANT TO YOUR
POINT, BUT IF IT’S STILL DEALING
WITH LIMITED REFINERY CAPACITY,
YOU’RE UP AGAINST THE WALL.
INTERESTING.
SECRETARY, THANK YOU.
HOPE YOU HAVE A SAFE WEEKEND.