00:00:58.000We will not embrace the ideas that have destroyed countries, destroyed lives, and we are going to fight for freedom on campuses across the country.
00:01:10.000Brought to you by the Loan Experts I Trust, Andrew and Todd at Sierra Pacific Mortgage at andrewandTodd.com.
00:01:19.000All right, everybody, welcome to this episode of the Charlie Kirk Show.
00:01:23.000We're going to get down to the basics.
00:01:25.000We're going to explain gas prices, the oil and gas industry from the bottom up.
00:01:28.000For those of you that know very little about it or nothing at all, that's okay.
00:01:32.000This is kind of your gas prices, oil and natural gas industry 101 crash course session, I should say.
00:01:40.000I know a lot of you guys are emailing us and asking us questions about it.
00:01:44.000And so we have with us right now someone who is an expert, who is the CEO of Canary, best-selling author, commentator on politics and energy.
00:02:11.000So, well, it's all supply and demand, and it's a worldwide market.
00:02:14.000So, you know, what happens in the U.S., in Europe, in Russia, all of that matters.
00:02:18.000But look, the price of oil, the price you pay at the pump, that's the most visible commodity price that everybody knows.
00:02:24.000So it definitely affects everybody's life and what we're doing.
00:02:30.000The price of an Uber is 40%, the price of oil.
00:02:33.000The price of your plane ticket is 40% based on the price of oil.
00:02:37.000So it impacts everything in everybody's lives, pretty much.
00:02:40.000So, you know, there's a lot of different influences towards that.
00:02:45.000So just walk us through some examples of public policy decisions that then impact that price of gas that all of us are paying, whether it be leases, pipelines, or how significant are those things in actually influencing the price of gas?
00:03:03.000So I think they affect the things around the edges.
00:03:05.000Look, the number one driver is going to be: how is the economy doing?
00:03:09.000And do people have a demand for oil and gas?
00:03:12.000But that aside, you know, the administration, the Trump administration, or now the Biden administration have many, many levers, and they pull on these levers and push on these levers.
00:03:48.000So, and forgive me, but this actually makes my blood boil.
00:03:51.000But look, you know, in the past month or two or three, as the oil prices kind of creeped up and like Pre-the Ukraine war, the Biden administration keeps continually reaching out to OPEC to produce more oil and has been completely silent and deaf on the U.S. industry.
00:04:08.000And so, for those of us in the U.S. industry, this is just maddeningly frustrating.
00:04:14.000But why is Biden calling OPEC when he could be calling Texas?
00:04:18.000He could be calling North Dakota, he could be calling Western Pennsylvania.
00:05:04.000Yeah, we're definitely not going to run out in five years.
00:05:06.000Look, the worldwide market is about 100 million barrels a day, give or take.
00:05:11.000In general, you can think about that as 10 million U.S., 10 million Saudi Arabia, 10 million Russia, and then the other oil-producing countries make up the balance.
00:05:25.000So, in the U.S., we produce about 11.4 million barrels a day right now, to be exact.
00:05:31.000Before COVID, we were producing about 13 million barrels a day.
00:05:34.000I think that decrease is based on policy response and different changes in the Biden and the Trump administration has pushed the production down a little bit.
00:05:45.000We've got an enormous amount of resources here.
00:05:47.000We are more or less energy independent.
00:05:51.000We are right now importing about 20% of what we consume, but we have the ability to change that and produce that here in the U.S. and not need to be relying on OPEC or Russia or anyone else.
00:06:05.000How many years have I been telling you about Relief Factor?
00:06:07.000Producer Andrew's right here doing an Iron Man thanks to Relief Factor.
00:06:10.000And truth is, I know there are millions of people.
00:06:12.000In fact, some say over 100 million people struggling with some kind of pain, maybe from exercise or just getting older.
00:06:18.000That can do it, getting older, which is why I'm so impressed with the people at relieffactor.com.
00:06:23.000You rarely see this kind of focus and commitment.
00:06:25.000They recently shared with me that they are doubling down and want to literally double their total number of happy customers in the next year.
00:06:32.000So here's the deal: if you're struggling with back pain, neck pain, shoulder, hip, or knee pain, even general muscle aches and pain, then I'm suggesting you order their three-week quick start, still discounted, only $19.95.
00:07:19.000So, you know, I think we can produce 75 to 125% of what we consume every day right now.
00:07:26.000And we could do that for 50 or 75 years.
00:07:29.000The Permian Basin is one of the most prolific basins in the entire world, absent maybe two fields in Saudi Arabia.
00:07:36.000I would say it's the third or fourth most prolific field in the entire world.
00:07:41.000You know, a lot of these countries we think of as oil-producing nations like Iran, they produce one point, you know, at best, 1.1 million barrels a day.
00:07:51.000Kuwait, the entire country produces 2 million barrels a day.
00:07:54.000Well, the Permian produces about 4.5 million barrels of oil a day, and it's going up.
00:08:00.000So, you know, relative to even what we think of as being major oil producers, the Permian Basin is a very prolific field.
00:08:08.000We also have a field in North Dakota called the Bakken that produces in excess of a million barrels a day.
00:09:15.000And the Biden administration was late anyway.
00:09:18.000U.S. oil companies have already self-sanctioned it.
00:09:20.000These European countries are really going to have much tougher decisions.
00:09:23.000Oil is much easier to move around the globe.
00:09:25.000The natural gas is more of a continental price and is harder to ship.
00:09:30.000I can also say that there's six export terminal permits the Biden administration has been sitting on for over 12 months, not issuing permits to continue, notices to continue.
00:09:43.000And so that's slowing down our ability to export natural gas.
00:09:46.000If those permits would have been greenlighted at the beginning of the Biden administration, probably two of those six terminals would have been up and running, and we could export natural gas to Europe to help solve this problem.
00:09:57.000And unfortunately, right now we can't.
00:09:59.000Is the easiest and best way to transport natural gas is it via pipeline?
00:10:04.000And then therefore something 3,000, 4,000 miles away logistically just makes it nearly impossible.
00:10:10.000So, well, in terms of getting it to Europe, we would need to use a ship, right?
00:10:13.000But as far as moving it around the U.S. or around Europe, yeah, pipelines make way more sense.
00:10:20.000I've always thought that people that are trying to kill pipelines really don't understand, really haven't taken a look at the entire issue.
00:10:27.000Because if you don't want to use oil, you don't want to use gas, then you want to kill the demand.
00:10:34.000You don't necessarily want to kill the supply.
00:10:36.000You're just making it less safe and the costs go up by not having pipelines.
00:10:41.000So I want to ask you a question about fracking.
00:10:43.000There seems to be a war against fracking.
00:10:58.000And what has it meant for American energy superiority?
00:11:02.000Well, it's really an amazing invention.
00:11:04.000So before fracking, we would go, we would drill a well.
00:11:07.000So call it one mile, two mile, whatever.
00:11:09.000And you're really only looking for these.
00:11:11.000The geologist is really only looking for this two or three inches or eight or nine inches near the bottom of that hole.
00:11:18.000And that's where they think the hydrocarbons are.
00:11:21.000Well, with fracking or well, with horizontal drilling, being able to go down and then go left or go right, and then fracking, we're able to take that kind of three inches or eight inches that the geologists want, and we're able to create a bunch of mini explosions.
00:11:38.000And so increase the surface area by 500 times or 1,000 times of the amount of the pay zone or the geology we're looking for.
00:11:47.000And so it's magnificent in terms of efficiency and increasing our ability to extract hydrocarbons cheaply.
00:12:23.000And I think a lot of people just don't understand the technology, haven't taken time to understand the technology.
00:12:28.000And in general, are, you know, reluctant to side with oil companies on anything.
00:12:34.000So I want to ask you, if you were, let's say, czar for a day, or if you were in charge of all the energy decisions for America, knowing where gas prices are right now and having the opinion that you would want gas prices to go down, I know that is a mixed opinion in certain oil circles.
00:12:50.000In Midland, they're actually really happy the way they are right now, but they understand the danger of high oil prices.
00:12:55.000What could be done right now to lower oil prices?
00:12:58.000Would it be the Keys or XL pipeline, leasing on federal lands, offshore drilling?
00:13:04.000What could be done right now to lower oil prices?
00:13:07.000Well, first of all, I think that the Biden administration should get out of the way of the industry.
00:13:12.000And, you know, I would channel what Larry Kudlow says, drill, baby, drill.
00:13:16.000But, you know, in terms of specifics, what the administration should do is the offshore leasing blocks that are scheduled to expire in June, they should continue those.
00:13:26.000They should stop the federal moratorium on drilling on federal lands.
00:13:32.000And they should stop the death by 10,000 cuts where they're putting in this kind of chilling effect on the industry by reducing the financing and access to debt and equity markets.
00:13:43.000These things would encourage the industry to go out and drill more.
00:13:46.000Look, I think the policy response of the Biden administration is why our production right now is 11.4 million barrels a day and it was 13 when COVID hit.
00:13:56.000The administration needs to get out of the way and let the U.S. industry produce more.
00:14:02.000And over time, that will cause the oil price to go down.
00:14:10.000Look, did you get hit with a big tax spill you were not expecting with rates still being very low and home equity being high?
00:14:17.000It's the perfect time to refinance and get some cash out of your home.
00:14:20.000Look, you could go to one of these woke banks, Citibank, Chase, where they hate you, they hate the country, and they hate Christianity.
00:14:28.000Or you could refinance right now all of your mortgage needs.
00:15:26.000Can you expand upon ESG or the environmental sustainable governance, how hard it is for individual wildcatters, if you will, entrepreneurs to actually be able to acquire financing because of some of this kind of woke capital structure that exists through Wall Street?
00:15:42.000So I really believe there's been a chilling effect in the Biden administration on a lot of these Green New Deal or Green New Deal light policies they've been pushing and kind of the general apparatus has got investors really focused on staying away.
00:15:57.000BlackRock or Blackstone has said they're not going to invest in oil.
00:16:00.000Several of the charitable foundations and stuff have deinvested from carbon.
00:16:05.000And these kind of things I think are a little bit nonsensical in terms of, look, we need an all of the above approach and renewables and green are the direction.
00:16:15.000And we all want to be, we all want clean water.
00:16:40.000So when you plug your Tesla in, you're plugging your Tesla into a power plant that's powered by natural gas.
00:16:45.000And yet they don't want to actually have the policies that would allow us to get more natural gas.
00:16:51.000I want to ask you a couple of things as we close here.
00:16:54.000Just being very, without being, let's say, trying to get a headline grabbing, without being hyperbolic, which I know you're not, where do you think oil will go to?
00:17:04.000Some people are saying $200, $300 a barrel.
00:17:13.000It's a situation Ukraine doesn't change.
00:17:15.000If you look at the Western European nations, if they put on similar sanctions on Russian oil, which is very easy for the U.S. to do, it's harder for the Western Europeans to do.
00:17:28.000But I think if they do that, oil is going to hit $200.
00:17:30.000And I don't know how if this crisis gets worse and worse and worse, I don't know how with a straight face they're going to be able to buy Russian energy.
00:17:38.000So just in closing, tell us about your story, how you started your company.
00:17:42.000It's a very amazing, it's an amazing Only in America story.
00:17:45.000And do you think you'd be able to flourish and create the business you have under this current regime?
00:17:51.000Well, it would definitely be harder under this current regime.
00:17:53.000I feel like Biden just keeps throwing wet blankets at the oil and gas industry.
00:17:58.000And to see him say that he's, you know, his speech yesterday just really upset me.
00:18:05.000You know, my story is, you know, I was working for another company and there was a deal that, you know, I really liked that I thought the company should acquire.