Oil War - Jason Bordoff

December 16, 2014 - Kendrick Lamar 12/16/2014 Views: 20,268

The Center on Global Energy Policy's Jason Bordoff talks about OPEC's decision to flood the market with cheap oil in order to weaken the U.S.'s fracking industry. (6:28)

NOW, NATION, I GOTTA TELL YOU,TONIGHT I AM AS HAPPY AS A PIG

IN A CANDY STORE THAT ALLOWSPIGS.

JIM, TELL THE PEOPLE WHY.

>> GAS PRICES HAVE DROPPED TOTHEIR LOWEST LEVEL SINCE 2009.

>> A FEW SPENT, WHAT, $80FILLING UP YOUR S.U.V.

NOW YOU'RE SPENDING $60.

>> LOOK AT THE SIGN, $2.07 FOR AGALLON OF REGULAR.

>> YOU SEE GAS BELOW $2 IN THISPLACES.

>> YOU CAN FIND GAS FOR LESSTHAN $2 IN 13 STATES.

>> Stephen: LESS THAN $2 AGALLON.

THAT IS SO CHEAP.

NOW, I DON'T JUST FILL UP MYTANK.

I FILL UP THE WHOLE DAMN CAR.

IT'S DANGEROUS.

IT'S EXCITING, BUT IT'SDANGEROUS.

( CHEERS AND APPLAUSE ).

SO WHY THE SUDDEN DROP IN GASPRICES?

TV, TALK.

>> OIL PRICES BASICALLY IN AFREEFALL SINCE OPEC DECIDED NOT

TO SCALE BACK PRODUCTION.

>> WHAT'S HAPPENING, BECAUSE OFTHE RISE OF THE U.S. OIL

PRODUCERS, OPEC IS TRYING TOFLOOD THE MARKET BECAUSE THEY'RE

AFRAID WE'LL STEAL BUSINESS FROMTHEM.

>> OIL PRODUCTION HERE HASSOARED MORE THAN 70% IN THE PAST

SIX YEARS, SPURRED BY NEWHYDRAULIC FRACKING.

>> WHAT IS THE CARTEL HAS DONEIS EFFECTIVELY START A PRICE WAR

WITH THE UNITED STATES.

>> OIL WAR.

>> OIL WAR.

>> Stephen: OIL WAR, IT'SAMERICA'S DEAD DINOSAURS VERSUS

SAUDI ARABIA'S DEAD DINOSAURS.

STEVEN SPIELBERG, RETURN MYCALLS.

YOU SEE, FOLKS, IN RESPONSE TOAMERICA BECOMING RICH-ASS MOTHER

FRACKERS, OPEC IS FIRING ITSFIRST SALVO IN THIS WAR BY

OPENING THE TAPS, ALLOWING THEPRICE OF CRUDE TO FALL TO A

LEVEL AT WHICH A LOT OF AMERICANCOMPANIES WOULD LOSE MONEY ON

THEIR SHALE OPERATIONS.

DO YOU KNOW WHAT THAT MEANS?

IF THE FRACKING BUSINESS GOESBUST, NORTH DAKOTA COULD BECOME

AN UNPOPULATED WASTELAND.

( LAUGHTER )ON THE OTHER HAND, THIS IS GREAT

NEWS FOR CONSUMERS, FOR THEECONOMY, AND FOR OUR GIANT CARS.

>> S.U.V. SALES ARE HOT AGAINTHANKS TO THE GAS PRICES.

>> LOW GAS PRICES ARE HELPINGSALES OVERALL, PARTICULARLY

AMONG BIGGER MODELS LIKES.U.V.s.

>> AMERICANS BACK TO BUYINGS.U.V.s.

SALES OF THE EIGHT-PASSENGERLINCOLN NAVIGATOR UP 88%.

>> Stephen: YEAH, BABY!

S.U.V. RS BACK!

( CHEERS AND APPLAUSE )THE LINCOLN NAVIGATOR, THE

CHEVY SUBURBAN, THE CADILLACREGRET.

( LAUGHTER )COMMEMORATIVE BLACK RHINO

EDITION.

FOLKS, THAT IS AMERICANEXCEPTIONALISM.

WE SEIZE THE MOMENT.

CARPE GASUM.

I MEAN, FUEL IS CHEAP THIS WEEK.

GIVE ME A FIVE-YEAR LEASE ON AROLLING CARGO SHIP WITH THE

AERODYNAMICS OF A CINDER BLOCKBECAUSE I BELIEVE WE ARE NOW

LIVING IN A NONSTOP PETROLEUMPARTY THAT WILL NEVER, EVER END.

THAT'S JUST HOW MARKETS WORK.

HERE NOW TO TELL ME THAT'S NOTHOW MARKETS WORK IS THE DIRECTOR

OF COLUMBIA UNIVERSITY'S CENTERON GLOBAL ENERGY POLICY, JASON

BORDOFF.

JASON, THANK YOU SO MUCH FORBEING HERE.

( CHEERS AND APPLAUSE ).

OKAY, ALL RIGHT.

SO THIS IS IT, THIS IS IT.

GAS PRICES HAVE COME DOWN.

THIS IS THE FORESEEABLE FUTURE.

IT'S-- IT'S-- IT'S-- IT'S OILPARTY.

>> IT IS RIGHT RIGHT NOW.

>> Stephen: ALL RIGHT, THENIT ALWAYS WILL BE.

>> OIL PRICES HAVE A FUNNY WAYOF GOING UP AND GOING DOWN.

THEY ALWAYS HAVE AND THEY ALWAYSWILL.

THEY'RE LOW RIGHT NOW-->> Stephen: MAYBE THIS IS THE

TIME THEY DON'T THOUGH.

>> I WOULDN'T WANT TO BET ONTHAT.

YOU'RE THINKING ABOUT BUYING ANEW CAR AND WILL HAVE IT 10, 15

YEARS, LIKE MOST PEOPLE, YOU'REBETTER OFF INVESTING IN A

FUEL-EFFICIENT CAR TO SAVE MOREMONEY DOWN THE ROAD

>> Stephen: YEAH BUT THERE'SFUEL EFFICIENT AND THERE'S FUEL

EFFICIENT. I CAN GET A FUELEFFICENT SUV

I CAN DRIVE ALL THE PRIUSES INTHE WORLD RIGHT OFF THE SANTA

MONICA PIER RIGHT NOW, CAN'T I.

WHATEVER HANDED TO PEAK OIL?

I HEARD WE HAD RUN OUT OF OILIN THE WORLD, WE WOULDN'T FIND

ANY.

NOW IT'S LIKE OUR SUBSTRATE ISJUST A SLURRY OF HYDROCARBON HOT

POCKETS.

>> THERE HAVE BEEN ABOUT FOUR ORFIVE TIMES IN AMERICAN HISTORY

WHERE PEOPLE THINK WE'RE RUNNINGOUT OF OIL, AND IT TURNS OUT

PEOPLE CAN BE PRETTY INNOVATIVE,AND WHEN THE PRICE IS HIGH THEY

DEVELOP NEW TECHNOLOGIES AND NEWWAYS TO EXTRACT HYDROCARBONS

FROM WANT GROUND.

>> Stephen: HOW MUCH SURPLUSOIL DO WE HAVE RIGHT NOW?

>> WE DON'T HAVE SURPLUS.

WE ARE STILL AN IMPORTER OF OILAND WILL BE AN IMPORTER AS FAR

AS THE EYE COULD SEE.

>> Stephen: HOW ABOUT THEWORLD? THERE HAS TO BE

A LOT OF OIL IN THE WORLDBECAUSE THE PRICE IS GOING DOWN

>> THERE IS OIL IN-->> Stephen: DID I JUST TEACH

YOU ECONOMICS?

I THINK I JUST TAUGHT YOUECONOMICS.

( CHEERS AND APPLAUSE ).

THEY'RE SO DEPENDENT ON OIL, ISTHERE A CHANCE THAT HE MIGHT NOT

BE ELECTED MISS RUSSIA NEXTYEAR?

>> RUSSIA IS IN SEVERE ECONOMICSTRAITS.

THEIR ECONOMY IS ON THE VERGE OFCOLLAPSE.

THEIR CURRENCY, THE RUBLE, HASFALLEN OFF A CLIFF IN THE LAST

FEW DAYS.

>> Stephen: ISN'T THIS AGREAT ARGUMENT-- THE ARGUMENT

FOR HAVING CHEAP GAS IS THAT ITDESTROYS OUR ENEMIES.

( CHEERS AND APPLAUSE ).

BECAUSE IF WE HAVE CHEAP GAS,ISN'T IT-- WHAT I'M SAYING IS

AREN'T THOSE OF US ON THECONSERVATIVE PRO-FRACKING SIDE,

AREN'T WE THE ONES WHO ARERIGHT.

WE HAVE CHEAP GAS, IT'SDESTROYING THE RUSSIANS, AND IT

WEAKENS SOME QUESTIONABLE ALLIESIN THE MIDDLE EAST.

>> INCREASING AMERICAN OILPRODUCTION, RENIEWS CADUCEUSING

OUR IMPORTS, CUTTURE MARKETSHARE FOR VENEZUELA, IRAN,

RUSSIA-- THESE ARE COUNTRIES WEHAVE PROBLEMS WITH THEIR

BEHAVIOR.

THAT'S WHY WE ARE SANCTIONSAGAINST RUSSIA AND IRAN.

AMERICA IS MORE ENERGY SECURE,BECAUSE WE INCREASED PRODUCTION

AND REDUCED CONSUMPTION.

>> Stephen: HOW BAD COULDTHINGS GET FOR THE OPEC NATIONS.

ARE THE SAUDIS GOING TO HAVE TOTIGHTEN THEIR BELT BELTS?

AND A FOLLOW-UP QUESTION, COTHEYWEAR BELTS?

>> THE SAUDIS ARE BETTER OFFTHAN OTHERS.

THEY HAVE ABOUT $1 TRILLION INRESERVE.

COUNTRIES LIKE VENEZUELA, LIKERUSSIA, LIKE IRAN, THAT NEED

130, $140, BARREL OF OIL JUST TOBALANCE THEIR BUDGETS ARE AT THE

RISK OF DEFAULT AND REALECONOMIC CHAOS RIGHT NOW.

>> Stephen: SO SORRY.

THANK YOU SO MUCH FOR JOININGME.

JASON BORDOFF.

WE'LL BE RIGHT BACK.