WHAT DO YOU THINK THESE GUYS ARE DOING? THERE IS NO MARKET FORCES TO DO WHAT THEY’RE DOING. PRICES WERE STABLIZING AROUND — I KNOW THEY DIPPED DOWN TO THE MID 60s ON THE BANKING CRISIS BUT THAT PASSED AT LEAST FOR THE MOMENT. PRICES AROUND 75 BUCKS. WHAT DO THEY THINK THEY’RE DOING?
FROM A MARKET STANDPOINT, START THERE, WE’LL GET TO THE POLICY IN A MINUTE, FROM A MARKET STANDPOINT, HOW DO YOU READ IT? >> WELL, LARRY, I DO THINK THIS IS CONSEQUENCE OF WHEN THE UNITED STATES SACRIFICES AMERICAN ENERGY LEADERSHIP. AS YOU KNOW WE’RE STILL PRODUCING 500,000 BARRELS FEWER
A DAY SINCE PRESIDENT BIDEN TOOK OVER AND WE NEED TO GET AMERICAN PRODUCTION BACK UP TO THE LEVELS OF ABOUT 13 MILLION BARRELS A DAY, WHICH WOULD PUT OUR DESTINY IN OUR HAND, RATHER THAN IN THE HANDS OF REGIMES THAT ARE HOSTILE TO AMERICAN INTERESTS. THAT’S THE REAL CONCERN THAT WE HAVE.
THAT WE HAVE SACRIFICED THAT AMERICAN ENERGY LEADERSHIP OVER THE COURSE OF THE LAST COUPLE OF YEARS. LARRY: I MEAN, LOOK, WE’VE INSULTED THE SAUDIS. WE JUST INSULTED THEM, REPEATEDLY INSULTED THEM. AS FAR AS RUSSIA IS CONCERNED, THEY’RE COCONSPIRATORS HERE, DON’T WANT TO LET THEM OFF THE HOOK BUT HIGH PRICES FAVOR THE RUSSIANS.
SAUDIS HAVE A BUDGET I GUESS? I DON’T THINK THEY LIKE AMERICA ANYMORE. TRUMP HAD GOOD DIPLOMACY WITH THEM, GOOD DIPLOMACY WITH ISRAEL, GOOD DIPLOMACY IN THE MIDDLE EAST. SEEMS TO ME BIDEN RIPPED THAT APART, LIKE BAD DOMESTIC POLITICS EQUALS BAD INTERNATIONAL. NOW THEY’RE COMING AT US. THIS IS DIRECTED AT US?
>> FORTUNATELY THE HOUSE OF REPRESENTATIVES JUST LAST WEEK PUT FORWARD A BILL THAT WOULD PUT THE UNITED STATES BACK IN THE POLE POSITION, BACK IN POSITION OF AMERICAN ENERGY LEADERSHIP WHEN THE WORLD NEEDS IT. WE KNOW THIS WAR WILL NOT END ITSELF. WE NEED TO BE SUPPORTING OUR
ALLY IN UKRAINE, TO PUSH BACK ON RUSSIAN AGGRESSION. THE WAY TO DO THAT IS FOR THE UNITED STATES AGAIN BE THE NUMBER ONE SUPPLIER OF BOTH OIL AND NATURAL GAS DURING A TIME OF INTERNATIONAL CRISIS. THAT MEANS PUTTING POLICIES IN PLACE, THAT EMBRACE AMERICAN ENERGY LEADERSHIP RATHER THAN DIMINISH IT.
THAT IS OUR CONCERN OVER THE COURSE OF THE LAST COUPLE YEARS, DIMINISHMENT OF AMERICAN ENERGY LEADERSHIP. UNFORTUNATELY THE ONLY REASON WE INCREASED PRODUCTION IN THE UNITED STATES, IS ONE, BECAUSE AMERICAN PRODUCERS CONTINUE TO PRODUCE ON PRIVATE LANDS, NOT ON PUBLIC LANDS. THE ONLY REASON WE’RE ABLE TO EVEN PRODUCE ON PUBLIC LANDS IS
BECAUSE OF AN ACT OF CONGRESS. IT WAS CONGRESS HAD TO STEP IN SAYING WE HAD TO HAVE LEASE SALES IN THE GULF OF MEXICO, FOR EXAMPLE. UNFORTUNATELY WE HAD TWO SUCCESSFUL LEASE SALES IN THE GULF OF MEXICO, BUT AGAIN, THAT WAS BECAUSE OF ACT OF CONGRESS, NOT BECAUSE OF PRESIDENTIAL LEADERSHIP.
WE NEED TO GET BACK TO THE POINT WHERE THE EXECUTIVE BRANCH IS PARTICIPATING IN AMERICAN ENERGY DOMINANCE, AMERICAN ENERGY INDEPENDENCE AND BEING A LEADER AGAIN IN THE ENERGY SPHERE. LARRY: MIKE SOMMERS THE HR.1, LOWER ENERGY COST ACT, QUARTERBACKED BY STEVE SCALISE, COMING OUT OF THE HOUSE REPUBLICANS, THAT IS THE RIGHT
MEDICINE IN YOUR JUDGMENT? >> IT IS. I THINK THERE IS ACTUALLY A CHANCE TO GET THIS ENACTED THIS YEAR. I GIVE YOU AN EXAMPLE OF WHY. THERE WERE FOUR HOUSE DEMOCRATS THAT JUMPED ON BOARD SAID THIS IS THE RIGHT MESSAGE FOR AMERICA. THERE ARE ALSO GOING TO BE A
COUPLE OF OPPORTUNITY FOR TO US ATTACH LEGISLATION LIKE THIS, WHETHER ON A DEBT LIMIT INCREASE OR POTENTIAL GOVERNMENT SHUT DOWN LATER IN THE YEAR. WE THINK IT SHOULD BE STAND ALONE. WE THINK THE UNITED STATES SHOULD BRING IT UP IMMEDIATELY, HAVE OPEN DEBATE ABOUT THE FUTURE OF AMERICAN ENERGY INDEPENDENCE.
LET’S SEE WHERE THE SENATE IS ON THIS BIG PIECE OF LEGISLATION. THEY HAVE SHOWN LEADERSHIP IN THE HOUSE OF REPRESENTATIVES. IT IS TIME FOR THE REST OF THE GOVERNMENT TO SHOW LEADERSHIP AS WELL. WELL. LARRY: MIKE SOMMERS I COULDN’T REMEMBER KNOWING YOU ALL THESE YEARS, DID YOU BY CHANCE GROW UP IN CALIFORNIA?
>> I DIDN’T GROW UP IN CALIFORNIA FORTUNATELY BECAUSE THE WAY THEY ARE GOING NOW IS THE EXACT OPPOSITE WAY THE UNITED STATES SHOULD BE GOING. TO PUT — LARRY: TALK ABOUT THIS GAVIN NEWSOM. IT IS NOT PERSONAL. I PERSONALLY LIKE GAVIN NEWSOM, KNOW HIM FOR A WHILE, THIS PRICE
GOUGING BILL YOU WILL HAVE TO HAVE DAILY REPORTS FROM GAS STATIONS. THEY INCREASED TAXES AND REGULATIONS. I GUESS CALIFORNIA THINKS IT WILL LEAD THE COUNTRY BUT ALL IT DOES IS CREATE HIGHER GASOLINE PRICES, HIGHER OIL PRICES IN THE STATE OF CALIFORNIA. HOW DOES THAT HELP CONSUMERS, HOW DOES HA HELP MOTORISTS, HOW
DOES THAT HELP ANYBODY, I DON’T GET IT? PRICE GOUGING REALLY, HAVE THEY EVER PROVEN PRICE GOUGING? >> GOVERNOR NEWSOM SHOULD LOOK AT HIMSELF IN THE MIRROR, THE STATE OF CALIFORNIA, THE GOVERNMENT OF CALIFORNIA LED TO HIGH GAS PRICES IN THE STATE OF CALIFORNIA. THEY HAVE ALMOST DOUBLE THE GAS
TAX OF ANY OTHER STATE IN THE UNITED STATES. THEY HAVE IMPOSED A REGIME OF, A DIFFERENT KIND OF FUEL MIX THAT THEY HAVE IN THE STATE THEY MANDATE REFINERS TO REFINE TO. IT IS POLICY AFTER POLICY. THE PEOPLE THAT GET HURT THE MOST HERE, LARRY ARE ACTUALLY THE CONSTITUENT OF THE GOVERNOR.
IT IS POOREST PEOPLE WHO HAVE TO COMMUTE TO WORK AND PAY THESE HIGHER PRICES THAT DIDN’T HAPPEN AS A ON SEQUENCE OF AMERICA’S REFINERS. THE BEST REFINERS IN THE WORLD BUT BECAUSE OF THE STATE OF CALIFORNIA AND LAWS THAT THEY HAVE PASSED. SO WHAT THEY SHOULD DO, THEY SHOULD PUT TOGETHER AN
INDEPENDENT AGENCY TO LOOK AT, REVIEW LAWS THEY HAVE PASSED THAT INCREASED PRICES FOR THEIR CONSTITUENTS. LARRY: HAS ANYONE ACTUALLY, I KNOW THE FEDERAL LEVEL HAS INVESTIGATED SO-CALLED PRICE GOUGING, HAS ANYONE EVER COME UP, HUNDREDS OF THOUSANDS OF LAWSUITS, HAS ANYONE EVER PROVEN PRICE GOUGING? >> IN FACT OVER 100 YEARS
FEDERAL GOVERNMENTS AND STATE GOVERNMENTS LOOKED INTO THIS AND THEY NEVER FIND ANY EVIDENCE OF PRICE GOUGING. WHAT THEY FIND IS GOVERNMENT POLICIES HURTING AMERICAN PRODUCTION AND INCREASING PRICES ON AMERICAN CONSUMERS. IT IS GOVERNMENT — LARRY: NO. YOU’RE ON A ROLL. I WANT TO SAY, HOW CAN WE SAY THIS FOR THE UMTEENTH TIME?
THESE OIL PRICES ARE MARKET-DRIVEN. THEN GASOLINE IS JUST A DERIVATIVE OF THOSE MARKET PRICES. GASOLINE HAS COME DOWN BECAUSE THE MARKET PRICE OF OIL. THE TROUBLE I HAVE WITH SAUDIS AND RUSSIA AND OPEC PLUS IS, THEY ARE INTERFERING WITH MARKETS AGAIN AND WE UNFORTUNATELY BECAUSE OF OUR FLAWED POLICIES IN THE WAR
AGAINST FOSSIL FUELS WE’RE ALLOWING THEM, WE’RE ALLOWING THEM TO INTERFERE WITH MARKET PRICES. THAT IS MY BIGGEST BEEF HERE. >> LARRY, YOU HIT THE NAIL ON THE HEAD OF THE AS YOU KNOW THIS INDUSTRY IS A INDUSTRY OF MARKET TAKERS, NOT MARKET MAKERS. WE RESPOND TO THE PRICE OF
GASOLINE, PRICE OF OIL IS THE MAIN DRIVER OF GASOLINE PRICES, EXCEPT IN THE STATE OF CALIFORNIA. WHEN YOU IMPOSE A DIFFERENT FUEL MIX, WHEN YOU IMPOSE SIGNIFICANT TAXES ON CALIFORNIA CONSUMERS YOU’RE GOING TO GET HIGHER PRICES. THAT IS CLEAR. IT IS CLEAR TO ME THAT WHAT GOVERNOR NEWSOM WANTS TO DO IS
CONTINUE TO INCREASE THOSE PRICES, TO DRIVE THIS INDUSTRY OUT OF THE STATE. UNFORTUNATELY CALIFORNIA FOR A LONG TIME HAS BEEN A MAIN PRODUCING STATE IN THE UNITED STATES. THEY HAVE VAST RESOURCES, BOTH OFFSHORE AND ONSHORE. WANT TO CONTINUE TO DEVELOPING THOSE. THIS IS A STATE THAT HAS CHOSEN TO MOVE AWAY.
IT IS ONLY TO THE DETRIMENT OF CALIFORNIA CONSUMERS THAT THEY ARE DOING THIS. IT IS TIME FOR THE PEOPLE OF CALIFORNIA TO JUST SAY STOP. LARRY: YES, SIR.
