Reaction & Commentary
IF I HAD PROFESSORS LIKE HIM I WOULD HAVE DONE MUCH BETTER THAN I’M DOING RIGHT NOW. >> [LAUGHTER] NEIL: ALSO MITCH ROSCHELLE IF I HAD PEOPLE LIKE HIM ON SHOWS IN THE PAST WHO COULD EXPLAIN IN ENGLISH, WELL I’D HAVE MUCH MORE POPULAR SHOWS. ANYWAY, THAT’S NEITHER HERE NOR THERE.
ENOUGH ABOUT ME. LET’S GET BACK TO WHAT THE PRESIDENT IS SAYING RIGHT NOW, ABOUT TAPPING THE RESERVE. MITCH? THIS NOTION THAT WE’RE GOING TO GO HIT THE RESERVE AGAIN, DO WE NEED TO DO THAT? >> I DON’T THINK SO. FIRST OF ALL THE FIRST WORD IN SPR IS STRATEGIC AND NOT P
FOR POLITICAL, AND THIS IS CLEARLY A POLITICAL MOVE IN MY VIEW, JUST 20-SOME ODD DAYS BEFORE THE MID-TERMS, AND YOU’RE ENTRY TO THE SEGMENT NEIL WAS ALL FACT AND NEVER LET FACTS GET IN THE WAY OF A GOOD STORY BECAUSE THAT’S WHAT THE PRESIDENT DID WAS REALLY TELLING A STORY.
NEIL: IT BE ONE THING IF YOU WERE CONSISTENT SO SAY ALL RIGHT , I CAN’T ALWAYS TAKE CREDIT WHEN IT GOES MY WAY, BUT I CAN CERTAINLY SHIFT BLAME AND THAT’S NATURAL FOR A POLITICIAN TO DO. I JUST WONDER IN THIS CASE WHETHER IT CONFUSES FOLKS.
>> IT DOES AND FIRST OF ALL WHEN YOU WEAPONIZE PROFITS, AND YOU NAILED IT SO LET’S REMEMBER, WHEN PRESIDENT TRUMP WAS LOOKING ON ABOUT REFILLING THE STRATEGIC PETROLEUM RESERVE, HE WAS TALKING ABOUT $24 A BARREL. NEIL: RIGHT. >> IF YOU WANT TO TALK ABOUT PROFITS WE SOLD SPR AT $90 A
BARREL WHEN WE WOULD HAVE PAID $24 A BARREL AND HE GOT PUSHBACK FROM DEMOCRATS WHEN HE WAS TALKING ABOUT DOING THAT, BUT AND THEN THE PRICE AT THE PUMP THING? I SPOKE TO TWO LOCAL BUSINESSES. ONE IS A HOME OIL BUSINESS AND THE OTHER IS FIRST GENERATION AMERICAN WHO OWNS A GAS STATION.
THE FIRST GENERATION GUY WHO OWNS A GAS STATION HAS BEEN STRUGGLING THROUGHOUT THIS ENTIRE PERIOD BECAUSE OF THE VOLATILITY IN THE PRICE. HE DOESN’T KNOW WHAT HE’S GOING TO LOCK IN AT TO HAVE PRICE AT THE PUMP THAT MAKES SENSE. HE CAN’T LOWER THE PRICE. THE OIL COMPANY WHEN IT GOT TO
$140 A BARREL, THEY HAD TO BUY FUTURES CONTRACTS FOR THIS WINTER AND THEY WERE PAYING UPWARDS OF $6 A GALLON FOR DIESEL. NEIL: THAT’S AN EXCELLENT POINT. >> WHAT HAPPENS WHEN IT DROPS DOWN AND THE MARKET IS NOW $5. THEY WILL LOSE $1 A GALLON BECAUSE THEY HAVE TO MAKE THEIR
CUSTOMERS HAPPY, SO YOU CAN’T WEAPONIZE PROFITS AS YOU SAID IN THE GOOD TIMES AND THEN NOT LEAVE A RESERVE FOR THE BAD TIMES. NEIL: WELL THERE WAS NO CHOIR OUT FOR THE INDUSTRY WHEN IT WAS DEALING WITH ZERO DOLLAR, REMEMBER UNDER THAT AND THAT’S NEITHER HERE NOR THERE, BUT I DO
WONDER WHEN YOU TALK TO YOUNG PEOPLE AND STUDENTS AND THERE’S AN INHERENT DISTRUST IN OIL COMPANIES THAT’S JUST BAKED IN THE CAKE BUT IN THIS CASE IT’S MISPLACED. >> WELL LOOK, YOU TALK ABOUT WHETHER PEOPLE ARE CONFUSED BY WHAT THE PRESIDENT IS SAYING OR NOT. I DON’T THINK ANYBODY IS
CONFUSED HERE. THEY ARE LOOKING AT WHAT HE’S SAYING AND THEY ARE HEARING THE SAME THING THEY ALWAYS HEAR. NUMBER ONE IT’S NOT THAT BAD, OKAY, AND NUMBER TWO BLAME OIL COMPANIES. THERE’S YOUR CONTRADICTION. WHICH ONE ARE YOU REALLY SELLING ME HERE? BUT THE SELECTIVE CHOOSING OF DATA IS THE REAL PROBLEM HERE,
AND IT’S A PROBLEM POLITICALLY FOR HIM BECAUSE IT MISSES THE REALITY PEOPLE ARE LIVING IN HE CAN SPOUT ALL THE NUMBERS THAT HE WANTS TO. HE CAN TALK ABOUT THE STRATEGIC PETROLEUM RESERVE AND THE ELIMINATION OR THE RELEASE OF BARRELS, BUT THE GUY AT HOME, THE GUY AT HOME IS STILL SITTING
THERE SAYING I’M STARING FOR GAS AT 3.85 A GALLON AND IF IT’S DIESEL IT’S OVER FIVE BUCKS AND YOU’RE REALLY NOT CHANGING THAT STORY. NEIL: AND YOU ARE TAKING THE CREDIT WHEN IT GOES DOWN NOT WHEN IT GOES UP I GET THAT AND I UNDERSTAND THAT BUT I MEAN,
YOU’VE GOT TO LOOK AT THE REALITY HERE. THIS IS SOMETHING THAT’S TRADED ON THE GLOBAL MARKETS. NOW I’M JUST WONDERING GUYS IF THE ELIXIR AND THE PROBLEM SOLUTION HERE FOR THE PRESIDENT MIGHT IRONICALLY BE A GLOBAL SLOWDOWN, THAT IS TAKEN US DOWN FROM THESE $100 PLUS OIL DAYS TO
$85 NOW AND THAT’S JUST A HICCUP WE COULD GO SLIGHTLY FURTHER HAVING NOTHING TO DO WITH THE RESERVE AND EVERYTHING TO DO WITH THE WHOLE GLOBE. >> IF YOU LOOK AT THE PRICE COMING DOWN AND WE’RE WATCHING THE PRESIDENT I HEARD MITCH OVER HERE CHUCKLING ABOUT IT, BUT HE
SAID WE’VE BEEN ABLE TO BRING DOWN PRICES WITH THESE RELEASES, AND EVERYBODY KNOWS THAT’S NOT WHAT’S HAPPENING. EVERYBODY IS LOOKING AROUND THE GLOBE SAYING ECONOMIES ARE SLOWING DOWN. DEMAND IS SLOWING DOWN AND THAT’S BRINGING DOWN THE PRICE OF OIL. NOTICE THE PRESIDENT NEVER TALKS ABOUT REFINERIES EITHER. HE THINKS THERE’S THIS MISMATCH
BETWEEN THE PRICE OF OIL AND THE PRICE OF GAS. GUESS WHAT? FIVE REFINERIES IN THE U.S. HAVE CLOSED OVER THE PAST TWO YEARS. NOBODY IS LOOKING AT INVESTING THERE BECAUSE THEY KNOW THIS ADMINISTRATION IS SO HOSTILE. YOU WANT TO FIX THAT, MR. PRESIDENT? GREEN LIGHT FOR REFINERIES.
NEIL: THAT’S A VERY GOOD POINT BECAUSE YOU THINK ABOUT IT, MITCH, I MEAN, IF YOU’RE GOING TO INVEST TENS OF BILLIONS OF DOLLARS, IN SOMETHING YOU NEED SOMETHING BETTER THAN A COUPLE YEAR RISE TO SHOW YOU BECAUSE THEY MADE IT VERY CLEAR AND CERTAINLY THE SIGNAL THAT STATES
LIKE NEW YORK AND CALIFORNIA IS THAT THEY WANT TO BE FOSSIL FREE FROM THOSE TYPE OF VEHICLES IN THE NEXT DECADE OR SO, SO IF YOU’RE GOING TO MAKE A COMMIT THE AND PUT THAT MUCH MONEY UPFRONT AND YOU KNOW WHAT YOU’RE PUSHING IS SOMETHING THE ADMINISTRATION, THE POWERS
THAT BE HATE, THAT’S A GAMBLE FOR YOU TO EVEN TRY TO TAKE ADVANTAGE OF, IN AN ENVIRONMENT WHERE REFINING CAPACITY IS ALREADY RUNNING AT CLOSE TO 95%. >> SO, JUST POLITICALLY SPEAKING, YOU HAD JOE BIDEN AND BERNIE SANDERS DEBATING ONE ON ONE AND THE MODERATOR OF THE DEBATE ASKED SPECIFICALLY
ABOUT THE OIL & GAS INDUSTRY AND HE SAID WE’RE GETTING OUT OF THAT BUSINESS AS A COUNTRY. IF YOU WERE AN INVESTOR IN OIL & GAS, YOU JUST — NEIL: SELL. >> IF YOU’RE A COMPANY THAT HAS TO SPEND BILLIONS OF DOLLARS THAT NEEDS A 20 YEAR HORIZON YOU
AREN’T GOING TO INVEST IT. THE OTHER DAY YOU HAD CONGRESSWOMAN TALIB TALKING TO THE BIGGEST MONEY CENTER BANKS IN THE WORLD THAT WERE U.S. BASED SAYING ASKING SPECIFIC QUESTIONS, JAMIE DIMON HEROICALLY REFERRED TO THOSE POLICIES AS A ROAD TO HELL , OKAY? EVERYBODY ELSE IN THE QUESTION WAS FOR THE AUDIENCE PURPOSES
ARE YOU GOING TO CONTINUE TO BANK THE OIL & GAS INDUSTRY, BECAUSE IT’S EVIL. WHEN THAT’S THE RHETORIC THAT YOU’RE HEARING IF YOU ARE IN THE OIL & GAS INDUSTRY WE’LL TAKEAWAY YOUR ABILITY TO BORROW MONEY FROM JPMORGAN CHASE OR BANK OF AMERICA, OR WE’RE
GOING TO GET OUT OF THE INDUSTRY , WHY WOULD YOU INVEST IN THOSE REFINERIES, OR WHY IF YOU’RE A WILDCAT DRILLER ARE YOU GOING TO TAKE YOUR FAMILIES FORTUNE AND INVEST IN THREE MORE PUMPS IN THE BACKYARD NEIL: AND IF IT WAS IN YOUR FINANCIAL INTEREST TO DO SO,
THESE GUYS, OF COURSE THEY COULD DO SO IF IT’S IN THEIR FINANCIAL INTEREST TO DO IT BUT RIGHT NOW IT’S SO PROHIBITIVE IT IS NOT SO I GUESS IF THE MESSAGE COMING FROM WASHINGTON IS WE DON’T LIKE YOUR INDUSTRY, NEVER HAVE, NEVER WILL, THEN WE WOULD RATHER GET
IT FROM THE SAUDIS IF THEY ARE SO WILLING WHICH THEY AREN’T , OR VENEZUELA OR IRAN, WE WOULD RATHER GET IT FROM SOME OF THESE PLAYERS THEN THAT ARGUMENT FOR CLEAN ENERGY ALL BEGINS TO LOOSEN UP, EVEN GERMANY AND ITALY AND FRANCE, ALL THESE OTHER COUNTRIES ARE FINDING SOME
FOSSIL FUELS ALTERNATIVES BECAUSE THEY ARE BEHIND THE BRICK AND A HARD PLACE. >> AND BECAUSE THEY ARE ABOUT 20 YEARS AHEAD OF US IN TERMS OF EXPERIENCING WHAT HAPPENS WHEN YOU GO DOWN THIS ROAD. NEIL: BE ALL IN ON EVERYTHING. >> WELL, BUT THEY WENT SO IN ON
GREEN, THEY LOST THE INFRASTRUCTURE THEY NEEDED FOR THEIR FOSSIL FUELS AND AS A RESULT, WHEN THE WORLD CHANGES, THEY’RE IN TROUBLE. THE PRESIDENT SPEAKS NONSENSE WHEN HE TALKS ABOUT HIS CLIMATE AGENDA ON THE ONE HAND AND INCREASING PRODUCTION ON THE OTHER AND EVERYBODY KNOWS IT , AND THE PEOPLE WHO NO IT THE
MOST ARE THE INDUSTRY, THAT HE AND WE REALLY NEED TO INVEST IN EXACTLY TO MITCH’S POINT AND YOURS THEY SAY THERE IS NO WAY WE’RE IN IF THIS GUY IS IN OFFICE. IT’S NOT GOING TO CHANGE UNTIL LEADERSHIP SAYS THERE’S A NEW REGIME WHEN IT COMES TO AN ALL-
IN APPROACH, NOT JUST A GREEN ENERGY. NEIL: IT DOESN’T HAVE TO BE ONE OR THE OTHER. CHARLIE GASPARINO, I MEAN, AS YOU KNOW WE TRY TO SKEW POLITICS HERE NO ONE CARES WHAT THE MY OPINION IS IT’S POINTLESS , SO I HAVE STRONG OPINIONS ON THINGS LIKE FOOD BUT
GENERALLY, THIS OTHER STUFF I TRY NOT TO GET INTO BUT CHARLIE ONE THING THAT WAS BOTHERING ME IS THERE WAS A LOT OF PEOPLE SEIZING ON THE PRESIDENT’S REMARKS AND SAY OH, IT IS THE OIL COMPANIES SORT OF CORNER ING THIS MARKET, SCREWING US, GOUGING US, EVEN WHEN THE
PRESIDENT THREW IT OUT THERE WHEN HURRICANE IAN HIT FLORIDA THAT YOU BETTER NOT GOUGE, AS IF , THEY HAVE DONE COUNTLESS STUDIES INTO THIS OVER WHAT 40 OR 50 YEARS, WHERE NOT ONE-TIME WAS THERE ANY PROOF, ANY INDICATION THAT WAS GOING ON, BUT AGAIN, JUST TO THROW IT OUT
THERE, WAS ENOUGH TO GET PEOPLE PAUSE AND SAY OH, WHAT DO YOU MAKE OF THIS? CHARLIE: LISTEN, WE HAVE THREE WEEKS UNTIL THE MID-TERMS? IF YOU LOOK AT THE POLLING, IT’S STARTING TO SWITCH MORE TO ECONOMIC ISSUES, WHICH IS BAD FOR THE DEMOCRATS, INFLATION, A POTENTIALLY RECESSION, THE STOCK MARKET BEING CRAZY.
I WILL SAY THIS , AND THIS KIND OF TELLS YOU SOMETHING ABOUT THE BIDEN AGENDA AND HOW DIFFICULT IT IS TO BALANCE. ON ONE HAND, HE KNOWS, HIS ADVISORS, I KNOW WHO THEY ARE. THEY UNDERSTAND THE WHOLE NOTION THAT THE OIL INDUSTRY IS ESSENTIALLY FIGHTING WITH ONE
HAND TIED BEHIND ITS BACK IN TERMS OF DRILLING, BECAUSE ENVIRONMENTAL GROUPS, AS YOU SAID, ARE CHALLENGING THOSE LEASES. THE BIDEN ADMINISTRATION, BIDEN HIMSELF, POINT BLANK, SAID HE WANTED TO PUT OUT OF BUSINESS THE OIL INDUSTRY. THEY ARE FACING MASSIVE REGULATORY HEADWINDS. HE’S GOT TO BALANCE THAT, ON TOP
OF THE FACT, HE GETS THAT IS PURELY INFLATIONARY. SO HOW DO YOU DO THAT POLITICAL LY? AND THE ONLY WAY YOU CAN DO THAT IS ESSENTIALLY, TO CREATE A LIE THAT THE OIL INDUSTRY IS ESSENTIALLY CAUSING GAS PRICES TO REMAIN HIGH, AND TO SPIN IT THAT WAY, AND IT’S ACTUALLY
PRETTY PATHETIC BUT IT’S THE ONLY THING LEFT WHEN YOU GOT THREE WEEKS LEFT TO THE MID-TERM S. I WILL TELL YOU THIS. I SPENT A LOT OF TIME WITH WALL STREET CEO TYPES LAST NIGHT AND MET WITH A BUNCH OF THEM. THERE WASN’T A MAN OR A WOMAN
WHO DIDN’T SAY THAT THE BIDEN ECONOMIC POLICY, PARTICULARLY AS IT INVOLVES THE OIL INDUSTRY, IS NOT ABSURD. IT IT IT IS, THESE ARE DEMOCRATS A LOT OF THEM. THEY ARE SAYING ALL OF THE INCENTIVES ARE PUSHED AGAINST THE OIL COMPANIES AND THEY CAN’T BELIEVE THAT THE UNITED STATES OF AMERICA IS
BEGGING SAUDI ARABIA AND VENEZUELA TO DRILL OIL. NEIL: TO YOUR POINT, YOU KNOW, BRIAN, THAT’S WHAT’S AT STAKE HERE, RIGHT? IF YOU’RE GOING TO ARGUE THAT WE’RE GOING TO BE CLEAN ENERGY AND ALL, AND THEN YOU LOOK ABROAD AND YOU SEE WHAT’S GOING ON AND YOU SEE GERMANY EVEN
LOOKING AT NUCLEAR, LOOKING AT COAL, FRANCE THE SAME. THEY’RE LOOKING AT ALL OTHER OPTIONS BECAUSE THEY ARE PUSHED AGAINST THE WALL. IT DOESN’T MEAN THEY HAVE LESSEN ED THEIR COMMITMENT TO CLIMATE CHANGE OR WHETHER YOU AGREE WITH THAT OR NOT, BUT THEY’VE HAD SORT OF DODGE AND
ADJUST TO THE WORLD IN WHICH WE LIVE. >> WHY DO WE WANT TO WALK DOWN THE PATH THEY’VE WALKED DOWN? JUST BECAUSE THEIR BACKS AGAINST THE WALL AND NOW THEY MAYBE START TO DO SMART THINGS? WHY DO WE WANT TO GET OUR BACK AGAINST THE WALL? WE DON’T HAVE TO DO THAT.
WE CAN CONTROL TO A SIGNIFICANT DEGREE WHAT’S HAPPENING IN WORLD ENERGY MARKETS IF WE’RE SMART AT HOME BUT THIS ADMINISTRATION, CHARLIE, WANTS TO GET IN — NEIL: JUST IGNORE HIM. I’M KIDDING I’M KIDDING. CHARLIE: YOU NOW YOU SOUND LIKE MY WIFE. >> I WAS GOING TO SAY, WHY IS
IT MORE EFFICIENT AND MORE GREEN ENERGY FORWARD TO GET OIL FROM SAUDI ARABIA AND VENEZUELA THAN TO DRILL IT HERE? IF YOU THINK ABOUT IT — NEIL: WE HAVE PLENTY OF IT HERE. CHARLIE: NOT ONLY THAT. WE’RE STILL USING THE SAME AMOUNT. WE STILL HAVE NEEDS. THE NEEDS ARE BEING MET, NOT BY
US. IT’S BEING MET BY OVERSEAS. THE BIDEN ADMINISTRATION, THE ENVIRONMENTALS MAKE US THINK IF YOU DRILL MORE PEOPLE WILL USE IT MORE. THAT’S NOT NECESSARILY THE CASE. WE USE IT TO MEET DEMAND BASED ON THE TYPE OF ECONOMY WE HAVE. WE’RE NOT, IF YOU DRILL MORE THAT DOESN’T MEAN NECESSARILY
YOU’RE GOING TO USE MORE. ALL WE’RE DOING HERE, BECAUSE WE’RE GOING TO USE THE SAME — NEIL: KEEP YOUR OPTIONS OPEN. CHARLIE: ALL WE’RE DOING NEIL BECAUSE WE NEED THE SAME AMOUNT, BASICALLY, IS GET IT FROM OVERSEAS AND MAKE THE COSTS HIGHER. THAT’S ALL WE’RE DOING HERE. NEIL: WELL, AGAIN, IT KEEPS
GOING BACK TO THIS RIGHT, MITCH, BEING ALL IN ON THIS BUT THE FACT OF THE MATTER IS WE GOT THE DOW DOWN ABOUT 263 POINTS I DON’T LIKE TO OVER ANALYZE ONE-DAYS MOVEMENT OR ONE MINUTES MOVEMENT AS YOU REMINDED ME, MITCH AND PROFESSOR AT THE SAME TIME BUT I AM WONDERING
HERE, THE PRESIDENT HAS BEEN ALL OVER THE COUNTRY, AT LEAST GOING TO BLUE STATES ACTUAL HAD IT WHICH I DON’T KNOW HOW PRODUCTIVE THAT IS BUT TALKING ABOUT THE INFLATION REDUCTION ACT IS GOING TO YIELD GREAT RESULTS, DRUG COSTS COME DOWN, LET’S SAY THAT’S EVEN TRUE ON THE DRUG COST FRONT.
THAT’S A SMALL PART OF OVERALL PRICE INFLATION GOING ON RIGHT NOW, SO I’M JUST WONDERING IS THERE SOMETHING YOU SEE THAT WE’RE MISSING HERE OR THAT THE PRESIDENT IS SAYING THAT MAYBE I’M >> FIRST OF ALL DRUG COSTS THAT IS REALLY FOR SENIORS. POLITICAL PANDERING. NEIL: BE CAREFUL HOW YOU DESCRIBE SENIORS.
>> I’M NOT TOO FAR AWAY. NEIL: BRIAN TAKES A COUPLE OF ASPIRIN, CALLS IT A DAY. >> GOT THE AAR P-CARD IN THE MAIL MYSELF. THE FACT THAT IS THE CON STITT E CONSTITUENT HE IS GOING AFTER. NEIL: THAT MAY WORK FOR HIM. >> INFLATION IS SECURED FOR INFLATION.
IF YOU DON’T HAVE A REAL WAY TO ATTACK IT, ALL YOU CAN DO IS TRY TO WASH OUT DEMAND. OIL PRICES WILL COME DOWN WHETHER THERE IS LESS DEMAND FOR OIL TO CHARLIE’S POINT BECAUSE THE ECONOMY AROUND THE WORLD IS SLOWING. WHAT SCARES ME RIGHT NOW EMBOLDENING IRAN AND YOU THE
WORLD, CREATING CUSTOMERS FOR IRAN BECAUSE THE NUMBER ONE STATE SPONSOR OF TERROR. ALL THAT HAS DONE IS TAKE ONE OF THE MOST DANGEROUS COUNTRIES IN THE WORLD GIVE THEM MORE POWER, RUSH IS A ASIDE. THAT SCARES ME. NEIL: PROFESSOR, WHEN YOU TALK ABOUT THIS, I ALWAYS ASK THEY LOOK AT THE WORLD DIFFERENT,
QUIET QUITTERS, THEY’RE NOT SURE IF THEY WANT TO BE PART OF THIS TYPICAL WORK WORLD AND THEY’RE ANGRY. WILL THAT ANGER PERSIST? >> I ACTUALLY HOPE IT DOES. I HOPE YOUNG PEOPLE GET ANGRY AND ANGRY FUELS THOUGHT. BE ANGRY DO NOT SIN. THERE IS SOMETHING MOTIVATING BECAUSE OF WHAT HAPPENS IN THE
WORLD WE NEED TO DO SOMETHING. THERE IS TOO MUCH APATHY. NOBODY IS DIGGING IN. PRESIDENT SAYS WHAT GAS PRICES ARE, THE PRESIDENT, HE MUST BE SAYING WHAT IS CORRECT. DIG IN. NEIL: BE ANGRY. >> BE ANGRY IN A WAY THAT HELPS THE WORLD GET BETTER. NEIL: WHAT YOU’RE SAYING BE A
LITTLE MORE ITALIAN? >> DEPENDING ON WHO I AM TALKING
