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"six two million barrels" Discussed on KTRH

KTRH

07:14 min | 2 years ago

"six two million barrels" Discussed on KTRH

"Well welcome to the Crees used our my week it's smart oil and gas the bosses here I would think it's the most relaxing our view it is but I mean the oil and the oil business lately it's been really well along with everything else in the world kind of kind of crazy you know it's funny is what welcome mark I'm yeah I'm I'm told you're the loss yeah I'm your assistant and have body guards you're the radio professionals how I think I'm I'm your food tester so whenever one parties I I go I test the food a heavy use so radio professional good to be here serving you so what what what everything is crazy we're gonna talk about that in a second what we do here on smart oil and gas you know our show is about all in gas because you know with all the new green deal all talk and all that sort of stuff they you know the world's going to end in ten years which we've been hearing for years as a matter of fact Jimmy Carter one time said that the world would run our United States to run out of oil in ten to twelve years I don't know where they they pick this number I guess presidents last only eight years so they got a they got to try to do something quick but our show is all about all in gas and the reason being is the world right now needs and consumes a just under a hundred million as of oil a day so a hundred million and the price is sixty so six hundred million dollars worth of oil and gas every day for transportation fuel for heating homes for generating electricity in our show is all about how individuals can use investments to get in on a piece of that industry well put yeah bosh we talk about the news and I were I reference things being a little crazy so I need I need yeah sure Santella everything's gonna be okay right yeah everything is gone and and and now it's officially now the US is the number one energy producer in the world what what you know we'll talk about that but I'm looking at several articles from various sources right now talking about the fact that the world's excess supply of oil is is not that much in fact both these articles talk about the drone strike member in Saudi Arabia back in September there was you know allegedly from Iran who knows I mean probably but regardless of where is from you know the price of oil shot up after that and both these articles talk about the fact that that's reminder that there isn't that much extra capacity out there well the interesting thing is that reason I am I accurate there or would you yes you are accurate and and of course it all goes back to supply and demand but storage in between and so the world typically has anywhere from thirty to sixty days of storage the world produces about ninety six million barrels of oil a day in uses about ninety six now when they say that again you say ninety six and we use ninety six yes you're right to say that all yeah we use ninety six and we produced ninety six two million barrels a day right at a hundred not on extra case case I want to take a trip to East Texas is long enough gas to see if there is okay the idea is that we use the excess capacity in the world is usually about one to one and a half percent so that we always have storage and stuff like that because there's shortages you know there's a civil war in Nigeria and you know there's always a little shortages here and there but when a drone strike happens in Saudi Arabia and takes up five million barrels a day that's five percent of the world's demand for oil five times the overage amount is five times over to mount while in now is they've been building refineries and productions stations and and that sort of thing there for ages so their engineers know how to get all the materials together and get a lot of their production back on but you know they it may take awhile for say the last one or two million barrels it'll take you know two or three million barrels they'll get that up immediately then we'll be even point OPEC plus Russia was trying to take one to two million barrels off the market place to bring up prices now my take on this is a little different in that I ray and a lot of people are thinking that Iran is doing this so that they'll bring the prices up and they'll be a shortage so people say well let's open up the ramp I think just the opposite I think Iran is doing this just to be spiteful and they're they're kind like a rebellious teenager in in the the the world community of countries until you know we can sort through that and I think secretary state Pompey was doing a great job of dealing with them they're just going to be hard to deal with for a while which is going to bring a premium into the price of price jumped up about seven or eight Bucks because of this the US is not dependent on the Middle East so is settled and the people that will be hurt the most if they keep having stuff like this in the Middle East is China China and India are completely dependent on the Middle East so in in in in a number of ways it's good that the U. S. has gotten more independent from an oil and gas standpoint over the last ten years absolutely we're not dependent on them at all but Iran needs to watch out because the city just irritating the US once I start irritating China I mean a lot of people don't realize how close Iran is to China they can get over there aim bomba ran easily from China so I think we're array and really needs to tread carefully and destroying China's supply in the Middle East because of spite what's all this to the price of oil short term long term well you know we're pretty close to being balanced so I think that it's going ease of the price the first Gulf War with the a senior bush you know the the price old doubled from like fifty to a hundred dollars a barrel just overnight I'm not expecting anything like that but you know we we have seen a premium already of about five dollars a barrel and that will probably keep going up because there's just so much instability a man would have been are you expecting peace in the Middle East anytime soon probably not I'm not sold not that investors want this type of instability but does this additional incremental gain on the price to just go to investors or how how does it work yeah absolutely and we don't root for this for this year he goes to investors and to the tax base United States most most places F. fifty five dollars a barrel you can drill and produce wells and make a great profit so you know you can be in the twelve to twenty percent annual rate of return range or higher at that price range you know did in a course it depends you can draw horizontal well out in the Permian basin for that but anywhere anywhere else yeah you can make a ton of money so if the price goes up five dollars a barrel that just goes to your bottom line basically at last the taxes to the state which is you know anywhere from from five to twelve percent our boss one more story to.