True Patriot Love - Russia Tightens Oil Supply： Are Prices About to Explode？

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00:00:20.660 Thanks so much to the guys joining me today on this topic. We've got Brady Wedham and Paul

00:00:25.980 of course and uh the mission today is a discussion about what's going to happen in the wake of russia

00:00:32.320 uh creating sanctions for the first time in the world it's a very ironic moment in that sense that

00:00:38.220 where russia is usually getting shut down on the resources and the things that they need

00:00:42.620 from the rest of the western world now they're doing that to the world on par i believe that

00:00:47.880 they are going to reduce by 40 exports on oil on oil for the from the eastern part of the country

00:00:55.360 that got hit by the drone attack mike so you know in the beginning of the end of january the drones

00:01:01.200 hit their reserves in the eastern side of of the country uh basically uh took out a couple refineries

00:01:07.600 they have some reserves they have and so now they've said okay we're not able to get it back

00:01:12.720 online so we're going to start rationing gas from that part of the world or that part of the country

00:01:18.640 But it's interesting, Mike. So, you know, Russian oil. So those very few people know how the economics of Russian oil works.

00:01:28.260 So I wanted to just step back for a minute and and talk a little bit about Russia and oil, because Russian oil is traditionally sold at a very low price.

00:01:37.800 Being a communist country, they produce it, they put it into market.

00:01:41.780 They primarily, as you and I talked about before the show, use it for their own use in country.

00:01:48.640 So for manufacturing, for their citizens, for the war effort against Ukraine.

00:01:55.380 So for this show, it fluctuates a little bit up and down, but not as much as we do because we see crazy fluctuations in oil.

00:02:03.320 We have no control over the price of oil at all in this country.

00:02:06.620 But because they're a communist country and because they map out the direction of their country with oil, they keep it roughly around $25 a barrel.

00:02:18.640 Okay, that's really low.

00:02:20.140 Competing with $25 a barrel in the global market, I'm sure,

00:02:24.360 is not making you a lot of money.

00:02:26.860 But that's the exporting perspective on this.

00:02:30.940 Right.

00:02:31.440 Because what are they doing more than anything,

00:02:34.400 or at least with half of that oil that they're extracting?

00:02:38.720 They're using it.

00:02:39.700 They're using it for their own citizens, for the war effort,

00:02:42.380 for everything they're doing.

00:02:43.560 All the industry, all the power plants.

00:02:46.440 So they can keep the cost for their citizenship,

00:02:48.640 down number one for goods and things they manufacture they can also uh take it to market

00:02:55.680 and sell it so they can go and sell it uh india uh other countries china they love low priced

00:03:04.240 oils so quite frankly they can ship it over there and so there's a big market for it did they make

00:03:11.040 a lot of money on it and is it um it's let's call it price inflexible so it's they're indifferent

00:03:17.600 sometimes to whether they sell it or not i understand why they would keep it so low not

00:03:22.880 only does it keep it cheap in-house it keeps it ready for when it's they're ready to go to that

00:03:28.000 market well you and i talked about this uh just before the show it seems to me that what russia

00:03:33.120 does is they decommoditize their oil in a lot of ways because it's a base use item in their country

00:03:40.960 exactly you know and and as an export item secondary now we all remember so i'm gonna

00:03:47.840 pop over for a minute to norway because we did a show on norway of a few weeks ago

00:03:53.120 equinor who does the uh oil distribution for norway it's the company the the crown uh petro

00:04:00.160 canada type uh company that they have in norway um equinor sells for about 25 to 35 dollars same

00:04:08.960 thing so they have a cap on their price for oil as they produce it they have diversified holdings

00:04:15.500 so they do a lot of drilling in other nations and other places but for the most part they follow the

00:04:20.760 same structure they don't want oil and gas in their own country to be like ours to be at a high

00:04:30.200 number right they want to keep it down so their citizens can live with regular gas prices they

00:04:36.600 You don't have to pay a lot.

00:04:37.920 And I think we looked in the Middle East.

00:04:39.580 I think, what do we say?

00:04:40.940 Even it's crazy there, but they sell to their own citizenship at 70 cents a liter or something.

00:04:46.440 I think it's less than that, actually, Paul.

00:04:47.960 I think that in some places, it was on par with a bottle of water.

00:04:51.260 It was.

00:04:51.720 Yeah, exactly.

00:04:52.560 Yeah, water sometimes, bottled water can suppress it sometimes.

00:04:55.440 Yeah.

00:04:55.920 Yeah.

00:04:56.300 So I think that that's...

00:04:59.440 Now, the last thing I want to do is sit here sounding like a bunch of communists, but doesn't

00:05:04.900 it seemed like a reasonable thing to have this position where the rest of the world right now

00:05:11.580 is floating around uh on oil prices and russia probably doesn't care that much they've got their

00:05:19.540 own ability to produce their whole industry everything is so they're they are self-sufficient

00:05:25.520 at the moment they're not they're not choked on gas well it's interesting so you're looking at it

00:05:30.060 now you know in in the middle east and all the issues going on in iran how we're seeing the price

00:05:34.940 the spike right right the price increase and the longer this goes on the straight issues everything

00:05:41.080 now it's just another wrinkle in into the dynamic now you have russia saying oh well you know we had

00:05:47.920 drone attacks we've been hit our reserves in the east are now down we're going to start to reduce

00:05:53.780 you know uh we need to ration so quite frankly we're going to reduce it our exporting by 40

00:06:00.400 percent all of a sudden the ukraine hits the eastern side of russia and the reserves there

00:06:05.340 now we're really in trouble right so we were you know this is the uh you know we're dancing on the

00:06:11.660 head of a pin here and all we need is for something to happen on the other side of russia

00:06:16.960 and then china and india which are highly dependent on russian oil are really impacted

00:06:25.260 so it doesn't matter whether they're shipping or not or whether they can get through this trade it

00:06:29.620 won't matter at that point because uh they're going to be sending nothing anyway well then

00:06:33.940 it gets most of its oil now from russia as of recently like they used to be iraq before and

00:06:39.140 they they shop wherever it's cheapest but right now russia seems to be the cheapest for them so

00:06:43.020 yeah, they're a major supplier. Oh yeah, for sure. If you take a look, a lot of the nations that are

00:06:47.640 in trouble right now, I mean, it's quite shocking. Sri Lanka, they're on fuel rationing. Pakistan,

00:06:53.980 workweek reduction. India, export controls. China, they've got industrial limits.

00:06:59.920 I've never heard of that in China before. Vietnam, well, it's true, they're highly industrial, right?

00:07:05.960 Vietnam, fuel purchase limits, that's a tough one. That one, that, by the way, when you can't go to

00:07:12.860 the gas station and buy gas, that's when society starts to get really antsy. Thailand, price

00:07:19.020 controls. Let's see. Indonesia, subsidy reduction. So people are paying through the roof for gas and

00:07:26.780 oil. Germany, energy rationing plan is in effect. Italy, public transport adjustments.

00:07:33.120 France, price interventions. So fuel price caps and subsidies all over the place just to keep

00:07:40.320 them in the game and moving along indonesia uh subsidies have been cut and uh people are uh

00:07:48.160 people are protesting already the cost of living now they're out there they've got gas prices on

00:07:53.040 top of that at the highest that they've ever seen it so just a few of the countries that are

00:07:59.200 struggling right now as now russia has put a tighter clamp on the world's fuel consumption

00:08:05.600 yeah we you know more supply issues so if if they continue and like i said there's a mishap in the

00:08:12.000 eastern part of that country it's really going to change the dynamic of this and quite frankly from

00:08:17.120 a canadian perspective we're going to go well above two dollars a liter so you know it's it's

00:08:22.880 not a joke anymore because we've left ourselves fully exposed to this so and you know it's it's

00:08:29.520 interesting when the war happened in iran we were looking for a statement on what to do next what

00:08:35.120 was going to happen in canada it's pretty quiet you know we said well we might you know send some

00:08:40.000 people over there you know to help out you know from uh get people through the straight from a

00:08:45.200 logistics perspective there was all these things and then there was a multitude of different

00:08:50.800 statements coming out of the prime minister's office trying to tell us you know his position

00:08:56.720 but we couldn't really figure out what his position was but no one talked about gas

00:09:01.280 it's a very good point at that moment we should have been like okay we're going to two dollars a

00:09:07.500 liter and we produce a lot of oil what are we doing mr prime minister yeah we produce a lot of

00:09:12.900 a lot of oil to ship down to the u.s to refine and sell us back so we we ship it at a discount

00:09:19.080 and then we get it back at a premium so again you look at places like norway uh russia we're

00:09:27.200 I guess what you're saying, I'm sorry, Paul, what you're saying is we're tied to the nonsense that or whatever difficulties the U.S. is experiencing when there's absolutely no reason to cut that tie would give us a huge economic advantage compared to where we're at right now.

00:09:42.620 Right. And this, you know, as I've said on previous shows, this is a decision we made, you know, in 19, it started in 1975. We started Petro Canada. We went out and we decided we were going to nationalize our own gas, our own oil. And so we started to refine it. We started to sell it. We had ceilings and floors on gas prices that we self-imposed.

00:10:07.460 I know that drove everyone on the west coast of Canada crazy because, you know, private gas companies wanted the ability to...

00:10:17.080 But it reduced a lot of the market fluctuation, I think, at the time.

00:10:20.180 There weren't spikes.

00:10:20.960 Now, I think what really put PetroCanada over the top, in my opinion, was coming into the 90s,

00:10:27.840 they took off and they started to do international projects in Algeria,

00:10:34.780 Netherlands, Tanzania, the UK, Syria, Italy, Libya, Trinidad, Tobago,

00:10:40.520 Venezuela, Morocco.

00:10:42.240 Wow, they expanded.

00:10:43.740 Norway.

00:10:44.420 So I think what happened is we got quite good at this.

00:10:48.460 So, you know, and I was telling you before the show as a young man,

00:10:52.100 one of my first office jobs was with Petro Canada.

00:10:55.240 and this was around it was just before they actually privatized it or sorry they uh yeah

00:11:02.360 they sold it off yeah yeah before they sold it off so and you know it was a pretty miraculous

00:11:07.640 company like it was i think you know it had just in alberta alone it had 11 000 employees

00:11:13.360 and it was a big operation i worked out of the north york civic center office here in toronto

00:11:19.320 it was the full tower full of people it was a go-go operation and you know the executive were

00:11:25.500 like very motivated uh high performing executive canadians who were starting to branch out now

00:11:32.060 with the same model as equinor in norway which you know was actually at that time probably a

00:11:38.980 little behind us and so we were in front of them this is their model out there drilling in other

00:11:43.980 parts of the world yeah so they but but i think that's what caused the issues and so then on

00:11:48.620 Mulroney gets in in the 90s, the early 90s, he says, let's sell this thing off, right? Because

00:11:54.020 there have been so much, you know, the U.S. companies and people abroad who are starting

00:11:58.620 to compete with Petro Canada weren't super happy, right? Does anybody know what we sold it for at

00:12:03.180 the time? You know what? I'm going to get that for you on the next show, but I'm going to give

00:12:07.420 you an interesting stat. Equinor, I just looked at the results for last year. It's a $150 billion

00:12:15.160 dollar a year u.s company that's what it makes it makes net income between 25 and 35 billion

00:12:21.740 and it's contributed to date for their sovereign wealth impact fund there sits a reserve of one

00:12:31.600 point trillion dollars so they have a reserve of one point trillion so when they hit hard times

00:12:36.500 they can dig into and use for their country so at that point by going a trillion dollars a trillion

00:12:43.740 It changes the fate of a country.

00:12:45.880 Oh, yeah.

00:12:46.880 Well, it actually.

00:12:47.880 So when Norway decides to pull their money from a company in the US, the White House

00:12:54.720 calls to make sure they're okay because the fund is so big and such a big investor and

00:13:01.140 US projects that the White House says, are you okay?

00:13:06.260 I know you're pulling from this.

00:13:07.800 I know you're leaving this project.

00:13:10.220 Is there anything we can do?

00:13:11.400 how powerful little Norway, which has 5.6 million people, have become by taking the direction that

00:13:18.980 we left in 1990. And I think we have to kind of pause because we're in this moment where

00:13:25.700 we're dancing on the head of a pin. Think about it. One drone, one bad hit over in Russia

00:13:34.060 changes the landscape of the country instantly. And no one wants to talk about it. No one

00:13:41.340 wants to say maybe we should go back and maybe we should and maybe listen i'm not advocating that

00:13:47.260 we go back to a full petro canada model don't get me wrong there might be a hybrid model here

00:13:52.400 somewhere where basically we just take care of our supply in canada and we keep prices in canada

00:13:59.320 um you know at a better price oh that's an interesting concept just making our own fuel

00:14:04.560 just making our phone you know like you know what's good about that is we can adhere to

00:14:09.080 the liberal sensibilities of uh you know keeping it green which is always great yeah uh at the

00:14:17.020 same time we're we're pumping oil for our own needs here in canada processing is what remains

00:14:24.020 in the balance no yeah well don gilmore had said too like we already have one of the cleanest ways

00:14:30.040 of extracting oil like canada does this better than anybody else does right now like and i'm

00:14:35.960 pretty sure we could process it similarly i was just gonna say if we can do that then i'm assuming

00:14:40.920 we can come up with a very green clean way of processing this yeah oh yeah for sure well and

00:14:46.440 it's interesting because we seem to have had this all parties except for the conservative party were

00:14:52.520 on board so it's you know abby lewis last night i was hearing you know his thing about uh you know

00:14:58.040 oil and gas and oh yeah the ndp has a new leader yeah no and you know and i'm thinking to myself

00:15:04.040 uh douglas which was the leader at the time with trudeau you know and and he was all on board with

00:15:10.520 petrocan at the time because he understood where we were in the country and what we needed to do

00:15:16.280 with gas prices to stay competitive on the global right world so he backed him in this

00:15:23.240 he did back him in he backed him in he said listen i understand why we have to keep gas prices

00:15:28.120 reasonable oil prices reasonable because you know we have to live our manufacturing we have to be

00:15:33.480 competitive if we're going to be a nationalized if we're going to go to nationalize uh our you

00:15:38.520 know and decouple from the u.s as we're talking about we're going to have to figure out how to do

00:15:44.120 that and get some competitive advantage what better competitive advantage than to have our own

00:15:49.720 oil and gas at reasonable prices i wonder how fast we could turn around uh the harvest

00:15:56.440 and processing of oil in canada how quickly could we uh i mean i don't know what the process would

00:16:03.080 be buying a refinery this red tape it's our own red tape though the government just got out of

00:16:08.760 the way of itself how how fast could we do this two years well well you know it's interesting

00:16:14.660 so petro canada started in uh 75 yeah so that's when it did within a couple years they had bought

00:16:21.600 two uh oil and gas companies with refineries in canada and they started production yeah that's

00:16:28.740 two years it seems to be they did this before with limited technology in two years which means

00:16:33.220 we could probably do it now even sooner but two years is that's a pretty good window yeah i'm sure

00:16:38.260 now think about it if i'm sitting now some people say it's the bad a bad time to do it maybe so

00:16:43.940 because quite frankly the only ones cleaning up right now are the guys who you know we sold it

00:16:49.140 off so we don't own it as a government we have no stake in that game anymore so the guys you know

00:16:54.020 know even russia now who are selling into the market they're making more money a little more

00:16:58.960 money because quite frankly the market is good for them to sell at a higher price we're too late to

00:17:04.260 the game we're not too late but we don't know what the next 10 years are going to bring yeah we just

00:17:09.040 i think the question we have to be asking or we have to be talking about um in the house and and

00:17:15.580 throughout government how long is this going to go how uh susceptible are we to seeing these huge

00:17:23.540 impacts, and what is it going to do to our economy?

00:17:27.440 You know, they want to talk about stimulating housing.

00:17:30.060 They want to talk about stimulating mining.

00:17:32.800 To me, this is one we have to talk about what we're going to do

00:17:35.760 if this keeps going and if this keeps on and on.

00:17:39.340 Mind if I throw you guys a hypothetical?

00:17:41.060 Please do, sure.

00:17:41.700 Is this the time we say to the U.S., okay, we're stopping,

00:17:44.100 we're not going to send you any more oil?

00:17:46.260 No, I don't think so.

00:17:47.380 And we renegotiate?

00:17:49.020 You still want to send them oil.

00:17:52.380 Okay, but we have enough to take our own oil now.

00:17:55.680 We have enough to keep that deal and start a whole new system.

00:17:58.460 Yes.

00:17:58.780 I guess what I'm saying.

00:17:59.520 We're not pissing them off, but we're still creating our own sense of revenue.

00:18:02.920 I guess what I'm saying is, can we eliminate, this is once again hypothetical,

00:18:07.940 could we eliminate that cross-border processing return to Canada?

00:18:14.200 Could we compress that in some way?

00:18:16.560 Could we reduce the cost in that some way?

00:18:19.020 Could we offset with oil instead of cash that way?

00:18:23.200 Do we do any barter in the process to make it better for the Canadian people to get gas at a regulated price?

00:18:30.260 It seems to me that if we're the ones supplying the oil to them and we're not making money at it,

00:18:36.660 it behooves us to stop the chain of distribution to the U.S. long enough to renegotiate a deal.

00:18:44.700 If we did that, would there be a deal to be had?

00:18:48.180 Well, I don't think...

00:18:49.180 Or do we just have to...

00:18:50.460 I think if we keep sending them oil and we keep that deal, that's great.

00:18:53.580 Now we don't have to buy it back.

00:18:55.460 So we're not losing on that premium buyback.

00:18:57.560 Now they have the ability to move that oil wherever they want.

00:19:00.960 They don't have Canada as a customer anymore for the buying the premium back.

00:19:03.900 They just have Canada as a supplier.

00:19:05.920 So if we're supplying Canada with our own new system

00:19:09.980 and we're covering that end and more,

00:19:13.480 there's money saved, is there not?

00:19:15.140 ideally again you know we're a little we've we've made ourself captive of course even the pricing

00:19:23.900 of gas right now is based on the west texas model right that's what we're going off so we're pricing

00:19:30.120 even off of their own model so west texas sweet crude i believe it's called exactly so how does

00:19:35.900 that what's that pricing so we just the discount we take a like a 20 a barrel discount because we

00:19:41.740 have heavy crude from the refining costs less the shipping cost and we get to a what we call a

00:19:46.900 discounted price when we ship it down then when we get it back we pay exactly what anybody else

00:19:52.420 anyway but by that time we've increased the cost and and it's challenging for us so and we pay it

00:19:59.380 back on the back end right that's why our price per liter is higher our price per gallon but

00:20:04.300 But we're at that point, and all that was, how do I say it?

00:20:08.520 It was palatable when it was an open, free market, paying higher than probably we should have been.

00:20:16.280 But I think we were all kind of open to that.

00:20:18.860 Now we're starting to see the risks and the instability.

00:20:21.940 That's the interesting part.

00:20:24.120 We started Petroganida because of a war, the Yom Kippur War in 1973, in the same region.

00:20:31.660 we had the same embargo issues with saudi arabia and iran and all this the same issues are the

00:20:37.900 things we're dealing with today we're back there again and which is the crazy thing we're back in

00:20:43.820 the same spot and we're looking at it and we're all saying well i guess we're captive to this

00:20:47.900 market okay now's your chance appeal to carney tell them let's get this going yeah that's the

00:20:52.780 thing i think maybe that's what we have to do next have you heard any of the parties make this

00:20:57.420 suggestion at all no i haven't heard anybody even talk about oil no not at all no we talk about we

00:21:03.420 talk about the price of gas yeah the price of gas we're talking about how we can results though

00:21:08.860 open up the the straight of her moose for goodness sake yeah we can we can send our troops down there

00:21:13.660 to but that's not the real issue can't we open up the straight of montana but the the real issue is

00:21:19.500 the real issue in my mind is is not only the price eventual price of gas and oil but quite frankly

00:21:27.420 we talk about evs and we talk about you know converting and everything we're not there yet

00:21:33.260 either no so we're middle we keep talking about the fact that as canadians we're middled right

00:21:37.740 now so we've we've sold off our one national asset years ago we are in this model which

00:21:47.260 in an environment like this doesn't work for us doesn't work now right how do we get to the point

00:21:52.460 where if if it's going to take us years to get there we're not going to be sitting exposed

00:21:57.420 because there's nothing to say that this conflict in the middle east doesn't go on and on and on

00:22:03.100 and on and keep going on like these are these are long conflicts that can go like the embargo that

00:22:09.660 changed the world it caused the recession was only six months in 1963 1973. so that war was only went

00:22:18.860 on for six months the embargo only lasted and it it sent shockwaves we're in month

00:22:26.380 well we're we're in one we're in two i guess technically this has been five weeks as of today

00:22:31.740 yeah yeah so we're in month two and quite frankly you know are we going to go six months and at the

00:22:37.900 end of six months where we at because to your point mike look at the countries that are being

00:22:42.460 impacted so the ripple effect of all those the ripple effect of all those is they're not selling

00:22:48.380 goods they're not exporting goods they're not doing anything it's starting to slow right those

00:22:53.540 economies are all slowing so therefore any resources or any of the things we need from

00:22:59.420 those countries to keep ourselves going you know we just we're going to be doing a show coming up

00:23:03.960 which is very interesting and it was on lithium yeah i was even going to touch on that that i

00:23:10.160 think that'll be a good watch for people because we might think we're in the ev game not so sure

00:23:14.820 that's true no we only we only produce 2.6 percent of the world supply of lithium we're not

00:23:20.500 huge lithium suppliers well at least we've got that right except we sold it off to a chinese

00:23:26.880 company yes yeah and so how many batteries are we going to make without importing something from

00:23:32.400 another country country yeah and quite frankly that other country could be impacted by the oil

00:23:38.640 and gas issues therefore they're slowing so the ability for them to mine truck logistically

00:23:45.160 travel ship and land in canada to make it to a plant to make ev batteries that's all tough now

00:23:53.280 that's not all sounds like they'll probably be getting them from australia right and then

00:23:58.100 we'll be buying these batteries i i think i think we have to head in the direction of the next petro

00:24:03.320 Canada. Truthfully, I think it's time, even if it's a private venture in Canada that services

00:24:10.460 Canadians, that uses Canadian oil, and maybe that's just a good investment for Canadians or

00:24:18.160 a Canadian pension fund. Look, look what Equinor does. Look how Norway's handled it. Maybe a pension

00:24:24.660 fund or some major fund within Canada could be the catalyst here. There are some First Nation

00:24:30.460 groups that are poking around which is we're we're trying to get a show together i think it'd

00:24:34.720 be a great show and they've actually said listen just give it to us you know we have money in

00:24:39.520 reserve we have the abilities let us start and and draw the rest of the financing it's listen

00:24:45.700 they have land they have reserves on their land they want to you know they want to drill they

00:24:51.340 want to find it let's let's let's listen you know petro canada was a pretty good name it was good

00:24:57.700 branding yeah i don't know what the next one would be called uh canagas uh i don't know um well as

00:25:04.480 any of the viewers if they're in the position i am i came into this with no notes you guys have

00:25:08.040 all these great notes because i want i was here to learn i want to learn about this not only do

00:25:11.840 i understand a bit of it there's a lot more that i could understand so if canada wanted to do this

00:25:16.260 and let's say we're going to push this in this direction what are the first three steps that we

00:25:19.860 have to do to get there well i think i think we have to be number one we have to sit down with

00:25:26.240 Alberta and we have to make sure we don't make the mess like we made last time when PetroCanada

00:25:31.580 starts. We have to say, listen, here's what we're trying to achieve. So we're not trying to, you

00:25:36.940 know, PetroCanada had, like I said, they had ceilings and floors on gas prices. That's what

00:25:43.320 they said that we said as a country under our energy policy. And that scared everyone because

00:25:49.480 quite frankly, then they couldn't get, you know, we say in Canada right now, we need to sell

00:25:54.840 uh, oil for $60 a barrel or we don't make money. I'm not sure that's completely true. I think

00:26:03.000 that's a kind of an industry standard more than a requirement. I think it's an industry standard.

00:26:09.480 And I think quite frankly, that's the way they condition us to tell us that their opportunity

00:26:15.720 cost to sell it somewhere else would be lost. So I think what they're saying is we could sell it

00:26:21.260 somewhere else for 60 bucks or we can sell it to you.

00:26:23.960 Yeah, right.

00:26:24.800 Yeah, so I think that's-

00:26:25.640 Would you remove that scale?

00:26:27.000 Do you think that needs to be removed,

00:26:28.440 the top and bottom of the market?

00:26:31.080 I think for, like we talked about,

00:26:33.860 the oil that we're selling or sending to the US,

00:26:36.900 I think we just let that go with the West Texas sweet crude price.

00:26:41.340 Just let it happen at that price.

00:26:42.660 And let that happen so we don't disrupt the model.

00:26:45.360 The oil that we use for our own refineries gets discounted

00:26:50.040 a price that allows it to be sold back into canada at a reduced price so that's my methodology so

00:26:57.160 it's a little bit of a hybrid of what petro canada was so i it's almost closer to the equinar plan

00:27:03.800 except for somewhere except for i think we don't and this is what caused a lot of challenges with

00:27:10.120 the u.s companies and with some canadian companies i think we're very cautious on how we go outside

00:27:16.040 of canada so so really make it a national effort we don't need to be scouring the world for more

00:27:22.600 oil we've got enough here yeah equinor became a global you know a global oil like they literally

00:27:27.880 they have divisions like it's amazing what they do they are not only uh drill and frack and all

00:27:33.240 that other stuff they do pipelines uh they do solar they do wind they have like they're an

00:27:40.360 energy company they have like 20 divisions they branched off into and they become a behemoth in

00:27:45.400 the marketplace i don't think we look to become a behemoth and i think if we decide to go outside

00:27:50.600 of canada i think we uh agree to do it with joint ventures with other uh oil companies that are doing

00:27:59.000 business here in here in canada yeah so i think we say to them we're not going to compete with

00:28:02.760 you directly we're going to partner with you so i think there's some ways to kind of take some

00:28:06.680 of the issues that happen in petro canada days i think the petro canada team like i mentioned

00:28:11.160 to you that i met way back when when i was a young man i think they were just highly motivated good

00:28:16.440 executives who were on a mission to prove that canadians could be successful in-house globally

00:28:23.160 yeah anywhere in the world and with our own in-house yeah we were going to be the oil barons

00:28:28.040 of the world and they did it they did it they started to really and that's when it started to

00:28:32.520 the world started to say hold on a second guys you got the u.s market for sure kind of said okay we

00:28:37.160 We don't need your competition out here.

00:28:39.180 Exactly.

00:28:39.660 And, you know, Mulroney ran on the, you know, privatize, privatize.

00:28:45.580 And we talked earlier, Mike, we've had some horrific, bad, horrifically bad decisions on privatizing crown corps, highways, oil companies.

00:28:57.280 And we've done some terrible, made some terrible decisions as a country.

00:29:02.300 Crown lands.

00:29:03.220 We do it constantly.

00:29:04.600 Yeah, but we should stop.

00:29:05.820 Like, I think we have to stop with the new environment.

00:29:08.880 We've seen this playbook before.

00:29:10.680 We're back here again.

00:29:11.880 It's unfortunate we didn't put any contingency plans.

00:29:14.700 No government sat down and said, what are our exposures?

00:29:17.700 What are our risks?

00:29:19.040 You know, like I said, one drone goes the wrong way in Russia right now.

00:29:24.480 We're dancing on the head of a pin, and the market's totally blowing up.

00:29:29.160 All right.

00:29:29.860 Well, eyes to Russia, what they do next.

00:29:33.480 And, you know, with a bit of luck, we'll start to wake up here in Canada quickly.

00:29:37.860 I don't see it happening fast, to be honest with you.

00:29:39.880 Fast enough to make a difference now.

00:29:41.340 We're going to pay the price.

00:29:42.540 But this needs to be a reminder in the future that we have to insulate ourselves as a nation a little better here, I think.

00:29:48.340 Yeah, we need a plan.

00:29:49.640 Guys, thank you for schooling me.

00:29:51.340 I am so, so into this idea.

00:29:54.940 So schooled like my friend Brady.

00:29:56.900 Paul, thank you.

00:29:57.700 Brady, thank you very much.

00:29:58.700 And thank you for joining us.

00:30:00.860 We'll catch you next time here on TPL.

00:30:02.460 don't forget to subscribe tell a friend about it i have a squeaky chair it's not what you think okay

00:30:07.340 brady stop looking at me funny uh and we'll catch you next time here thank you so much

00:30:18.220 patriotic means looking up for each other and fixing things together true patriotism

00:30:24.540 is being in the country you love surrounded by people you love and great weather being

00:30:29.180 a patriot is being a part of your community and caring for it it doesn't matter who you

00:30:33.020 are or where you're from patriotism is the one thing we all share it's okay to be critical of

00:30:39.020 government and still be a patriot it's gratitude to your country of course i'm a patriot i'm

00:30:44.460 I'm Canadian, it's my home.

00:30:46.340 Well, actually, true patriot love is the mission.

True Patriot Love - April 03, 2026

Russia Tightens Oil Supply： Are Prices About to Explode？

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