This will be a ‘GREAT ECONOMIC BENEFIT’ for all Americans: Oil and gas expert
Nobody wants to produce a product that their customers can’t afford. It’s uncomfortable for us because we’re price-sensitive as well. Our costs go up as everybody else’s do. It is not sustainable for the long term, obviously, because demand destruction starts to take place. Taylor: The president of the oil and gas association, Tim Stewart, warns of pain even beyond the pump as gas prices remain elevated.
producers are also feeling the pressure as their own costs rise. But with oil prices still near $100 and gas prices high, he says current prices are unsustainable. Joining me now to react is Oil and Gas Workers’ Association president and oil and energy expert Matt Cody. Matt, thank you for joining. What’s interesting to us here at the table is that we have not yet seen demand destruction even with prices at these levels.
Do you see that, or are you surprised by this consumer’s resilience? No, that’s a great question because often whenever prices are this high, you see demand destruction where people drive less, you know, in cutting into their budget, so they’re having to choose between this or groceries or whatever. But that’s not what we’re seeing right now.
people continue. And we hope they do. You know, I was listening to Tim Stewart in the clip before. What a brilliant mind, the Usoga does a great job explaining it. bringing on new production is a big investment, and so whenever we’re able to clear this issue, and oil prices and, thus, gas and diesel prices start to come down, this will be a great economic benefit for all Americans. The Most Popular Social Security Fix Leaves a Massive Problem.
Taylor: Stewart also says that high gas prices are not necessarily due to an oil shortage but to tight refining capacity. Take a listen. [no audio] Taylor: Do we have that sound bite? — refineries, particularly here in the U.S., and I think what we’re feeling here in the U.S.
It is the impact of probably 25 years of policies that have said we can restrict our refining capacity because we’ll always get it from somewhere else, particularly in Europe. We’re also refining at the highest levels we ever have. We’re running at 97% capacity across the United States. We’re kind of running with the check engine light on.
Taylor: What policies do you want to see to boost refining capacity? First, we need to streamline permitting. from one administration to the next, whether it’s republican or democrat, investors — especially oil companies — need regulatory certainty that the project we want to bring on will get through. What will Trump have in store for Iranian president at UN meetings?
There’s a lot of uncertainty, especially—look at the past administration. Joe Biden, whenever he said that the administration was going to transition away from our oil jobs. And then, of course, all of the signals and actions from the Biden-Harris administration that told the oil and gas industry, ” Hey, we don’t want you there.
For four years, we were massively invested in new infrastructure and new production. Chevron CEO Mike Wirth talked about the massive underinvestment not just here but globally. And so now in the administration, we’re trying to catch up. What we need going forward is for all Americans — Republicans, Democrats, and Independents– to agree that USA oil and gas production and USA oil and gas refining are good for every American. Phila. health officials warn of possible measles exposure at Philadelphia International Airport.
hey, matt. this is michael lee. quick question for you. Saudi Aramco just told the Europeans that they can’t give them any oil in October for their refiners, okay, in this — is that a non-event, or is that going to put a lot of global pressure because now Europe needs to find a way to backfill that and just kind of make things from bad to worse in terms of the price of oil? That’s a great question.
Anytime there is a global supply disruption, it impacts us here in the United States. Saudi Aramco is telling European refiners, ” Hey, we’re not going to be able to get you in October. ” Well, that puts pressure on everybody else who is supplying those refineries. Matt, Josh Schafer here with a question on diesel.
I’m looking at it at $6.51 on diesel this morning. It was $6 a month ago. You’re starting to—under $6 a month ago. You’re starting to see it rapidly increase. What can stop that? It feels like a virtuous cycle at this point, where it just keeps moving higher. What can be done to stop the rise in diesel prices? No, that’s a great question.
The answer, unfortunately, is that not much will bring that down anytime soon. Certainly, you know, I have a lot of friends who are American truckers who are not only having to deal with battling illegals on our roads and foreign brokers who are undercutting their rates, but now they’re stuck with high diesel prices.
also farmers. It’s harvest time. I come from a farming, oil, and education family, and whenever we look at energy prices as the main driver of inflation, well, then, it’s hurting every American. I wish I had a crystal ball, and I could say, ” Hey, look, this is the solid answer. We’ve heard some calls for a diesel export ban, and number one, it wouldn’t change the price all that much, and number two, it sets a very dangerous precedent that could be used to reinstate the export ban that Prime Minister Barack possibly.
Obama left in 2015. Or for, say, a possible administration to ban U.S. LNG exports. We certainly never want to go down that road. Taylor: You know, when we’re talking about diesel, you’re spot on about the harvest season and farmers, in particular, trying to refill their trucks, their tractors, all of the manufacturing equipment that they use.
Does that automatically mean higher food scott — costs for consumers in the next 6-12 months? Well, and that’s a question for a lot of farmers, for a lot of Americans, you know? High diesel prices are cutting into the budgets of American truckers and farmers. And so, to make money, they have to raise their prices.
Well, then, the people who supply the food have to raise their prices. And so the ultimate way for us to bring down costs for all Americans is to solve this crisis and, going forward, ensure that we permit more U.S. refineries to process what we produce here. Taylor: Matt, just quickly here, the Bureau of Economic Analysis is finding that spending on data centers and other information processing has now surpassed residential investment. Which VPN Tunnel Style Routes Only Certain Types of Traffic in 2026
This is thought to place greater strain on the power grid and other energy sources needed to keep these facilities running. Is that a myth, that a.i. is driving up our electric bills, or do you really see all of that power being able to be used in many different ways? Well, certainly, with behind-the-scenes grid bills that we’re seeing across the country, I’ve seen state representative Jim Shaw up in Oklahoma, and Brad Bowles up there introduce legislation.
And then, of course, in Texas, I know of a bill that’s being led by a state representative and then, of course, a state senator. We see those bills across the country to make sure those costs are not passed on to the consumers. What people need to pay attention to is, say, the service commissions that regulate electricity service providers in each state to make sure data center demand does not drive up ratepayers’ bills.
