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To learn more about UKG, visit ukg.com. The President of the United States didn't think he should announce it. Michael Regan, one of the most talented guys in this administration, by the way, the EPA Administrator, came out and announced such strict tailpipe regulations that he believes that he's forcing every American to think about buying an electric car. They want 70% of us to have an electric car within nine years.
Tim Stewart is the President of US Oil and Gas. Tim, what's your reaction to these new emissions standards and the President's quest? Well, when you've got 87% of Americans who haven't embraced this sort of utopian approach and they say they either can't afford or they're not going to buy an EV, this rule is designed, Ryan, to punish them until they understand that this is for their own good, don't you think? I mean, these regulations essentially regulate cars with combustible engines out of business by making these rules so stringent automakers just can't afford to comply and so they'll force them into this transformation in the automotive industry.
And, you know, the fact of the matter is socialists are going to socialists and socialists say get in line and either the bread line or the gulag and so they're telling the automakers to get in line and it's bad for the rest of us to do that. Well, our grids aren't carbon free. The batteries, we have no way to get rid of them. We don't have the rare earth or we refuse to mine it here. China has locked up most of Africa and the Congo so they pretty much run things over there. They have a lot of the rare earth themselves and they are the chief battery maker so we're going to be subservient to them and we don't have the power stations so that led, here's Michael Regan, Regan the administrator, let's listen.
Most EV batteries right now are produced in China. So how do you balance the administration's climate goals while also trying to achieve its goal of reducing reliance on China? That's a great question and so we look at it in twofold.
We have to walk and chew gum at the same time. This proposal doesn't kick in until model year 2027. So we've got some years to ramp up. We hope that we can take advantage of that runway. Yeah, take advantage of that runway. We don't have a, we haven't paved the runway.
There's no pathway there. There's no incentive on manufacturing. Government's not going to bring it here and again, the problem with the EVs and you're not a car expert but oil and gas is that a small fender better could cost you $25,000. If you damage the battery, that's how much they cost and every five years you rotate it out. The average person listening to us who lives paycheck to paycheck can't afford these cars initially and it can't buy a Muse because the battery's going to be gone in five to seven years. So I can speak from experience.
I actually own an EV and yesterday I got the bill from the shop and I'm looking at a $5,000 repair grill and a month for parts because my son took the car out in the snowstorm last week and damaged the drive frame when he slid into the curb. This is this, you know, it's more than walking chewing gum. Okay, this is this is a classic sort of utopian ETA approach, which is all we can make this happen because we want it to happen. The reality is, look, fuel economy standards were implemented in 1975 in response to the oil embargo. We were relying on foreign oil for energy security.
It took us four decades to get off that. When you have 80% of the global supply chain, most of the batteries and materials are controlled by China and there's no plan to change that other than chewing and walking, you know, walking and chewing gum at the same time. You know, we can subsidize factories to build batteries in the U.S., but we can't get the raw materials to manufacture parts and it's no value. EPA is essentially mandating that U.S. energy security be completely reliant on China by no later than 2032. We've gone from relying on OPEC to energy independence to relying on China for our future energy security in my lifetime and I'm not that old. This is this is horrible policy and broadly paying the price for it.
You know, we're not trying to pan for gold. We have this natural resource, oil and gas, Tim Stewart, and we have not even replenished the strategic oil reserve and we watched the Saudis cut production to help Russia and China. So they're cutting production on the world market.
What's it doing to the price? Well, you know, and this is part of the plan overall. I mean, at this point, it's going to take them 7 to 10 years to fully replenish the strategic petroleum reserve, but if they figure that they're moving 80% of the new vehicles to UB, they don't need to do that. And so the petroleum reserve isn't an issue to them anymore because it's been overcome, overtaken by these more glorious events so they're a bit laid out. But we are we are in at 120th of what our capacity is there and it is really, really frightening because there are a lot of global events will happen before we ever make this full transition to EVs.
And the world too. So, Tim, what is the state of oil and gas right now and what is your what is your response when people say they're still making a great profit? Well, you know, and we're also, yeah, we're also paying much higher wages. We're being hit with the same inflationary pressure that everybody else has. The U.S. producers have done a really good job and we will never get credit from this administration. But, you know, Col, when you and I were talking a year ago, the issue is you've got to ramp up.
You've got to get up there. And we did. And our production is going to hit pretty, you know, almost near record levels this year, so long as the economy remains strong. But the reality is our refining infrastructure is still weak and the administration has not done anything to help help the refiners on that side.
And we're you know, we're in a good position to keep providing a product to the American people. But if the if the administration says that in seven years there's no need for gasoline, it's going to cause us to reconfigure our investment as well. We're still going to need petrochemicals. We're going to need plastics for these cars. And the fact of the matter is they're going to need us for the next hundred years until they find substitutes for all the materials that can go on these cars. So I want you to hear, this is good news for you, what Kevin O'Leary of Shark Tank said.
Listen. At the end of the day, we can make our own energy here very clean. We haven't built a refinery in America in decades because we can't permit it. But I don't think I wasn't going to I was planning on saying this, but I'm at that stage in my life where I want to do something big. And the task that I've decided I'm going to take on is I'm going to build a refinery in America.
Oh, wow. I'm going to do it. I'm going to syndicate the 14. I don't know why I broke it here, but it's going to cost about 14 billion dollars. I'm going to syndicate that debt and that equity. I'm going to find a state that wants to work with me.
I'm going to get a permit and we're going to do the right thing for America. We have to have more refineries. That's the key.
How's that? You know, the shark is smart and the shark follows the smart money. The smart money stays with the oil and gas industry. And, you know, we will back him 100 percent. Getting that permit is probably going to require a different administration. So he may be waiting for a year or two. But again, Kevin, I don't know him, but they get the smart money stays with the industry. And that's been proven over the last two years when the administration is trying to make us go away in January of 21. Here is the host of Power Hungry Podcast, Robert Bryce. This he put in perspective the practicality of what they're doing.
Cut 23. The average price of a new EV is fifty eight thousand dollars. Who's buying EVs? It's the Benz and Beamer crowd.
These numbers are very well known. The average household income for an EV buyer is one hundred and forty thousand dollars a year. That's twice the national average household income. This is very much a class issue. And it's not just about the affordability of the vehicles themselves. It's about the upgrades that the grid to the grid that we're all going to have to pay for through the rate base and through our taxes. So what is this going to require? Massive upgrades to the electric grid that are going to be rate based and then make every rate payer will have to pay for these upgrades. But these upgrades are going to be very expensive because the grid simply isn't ready to handle all this new demand.
That's how you do it. And the president's not even around to back it up. They don't even have people around to take a series of questions to pound them into this. And these new emission standards are just going to be impossible to comply with. Tim, we thought we'd have permitting reform at the very least.
But among the people disappointed, Joe Manchin. Some people have combined it. I think what came out of the House is they'll combine it with permitting for windmills, too. They will speed up the windmill permitting. If you speed up the oil and gas drilling, whatever happened with that? Well, it's still, you know, the Senate is going to be taking it up here by the by the end of the year, hopefully, because it has to be done.
But can I point something out? Nobody's talking about this is really interesting. The Department of Interior last week announced they're going to put a brand new emphasis in regulatory form on conservation and management of public lands. What that will do is actually that actually will kill a dozen or more large scale renewable projects that were planned to be cited on public lands because they haven't taken in to consideration the conservation impacts.
So this is one hand not knowing what the other hand is doing. Permitting reform is crucial. And we are linked at the hip on this with renewables and the oil and gas industry are both linked at the hip that if you are that we have got to have permits if we want to function in an industrial society. We've got to be able to get get the permits done to do what we need to do.
And yet your administration itself is keeps nailing with our foot to the floor trying to accomplish things like this. Amazing. Tim Stewart, thanks so much. Appreciate it. Great, great. Thanks. Listen to the show and free on Fox News podcast plus on Apple podcast, Amazon music with your prime membership or subscribe wherever you get your podcasts.
Whisper: medium.en / 2023-04-16 00:23:29 / 2023-04-16 00:28:21 / 5
