The Impact of Plunging Oil Prices On The Financial Markets – March 27, 2016

Guests: Gary Sernovitz and Rusty Braziel
Rusty Braziel: That is a very hard equation to calculate because energy independent, well doesn’t include gas, natural gas. Does it include natural gas liquids, is it? Are we only talking about crude oil? Now we’re exporting crude oil. The reality is that we’re still importing a significant amount of the crude oil that we use. A lot of that crude comes from Canada. So are we going to say that we’re going to stop importing crude oil from Canada? That’s pretty unlikely if that’s your definition of energy independence. So the real answer to it is that if you include all of North America and if you include all hydrocarbons. We’re not far away from energy independence right now. But if you’re only talking about crude oil and you’re only talking about crude oil that we produce in the United States and that’s your definition of energy independence it’s a long way away.

David Scranton: Okay you think, as final question do you think we’re closer on the oil side to that energy independence or closer on the natural gas side?

Rusty Braziel: Oh, natural gas, we’re already there and the first cargo of liquefied natural gas left Shiners Doc, just a few weeks ago. There’ll be a lot more liquefied natural gas being shipped out of the United States, we can produce more natural gas, in the United States that we can use, as a matter of fact, we’re doing that right now and that’s the reason prices for natural gas are as low as they are. So we’re already there on natural gas. We’re already there on natural gas liquids, propane, and butane. Only crude oil is the commodity where we’re still importing significant barrels.
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