Karr Ingham - Texas Alliance of Energy Producers Joins Houston's Morning News

Episode Transcript

Speaker 1 (00:00):
Yeah, I've never heard a song about anybody having fun
on an oil rig. I just have it. It's hard,
dirty work, but thank god we have people who do it.
Here in Texas, six twenty three at a time, here
in Houston's morning news, what's always interesting is the price
of oil and where the price of oil is and
where it's going. Car Ingham joins US Texas Alliance of
Energy Producers. It all gets down to supply and demand,

(00:21):
right Car, It always does, it always does. I'm actually
pardon me, I'm actually economist by a profession, but you
don't really even need to be one of those. Those
two things, supply and demand and what they're doing relative
to one another always sets the price. Ultimately, there may
be a little short term noise, but it's supplying demand

(00:42):
that drives what the price of crude oil is and
therefore what the price of gasoline is. All right, Well,
that short term thing you were talking about was right
after the President announced that he was backing Ukraine. I
assume that the reaction on oil prices going up, at
least temporarily going up, was the idea that if that
we may somehow disrupt the oil supply. Coming out of

(01:03):
that part of the world.

Speaker 2 (01:05):
Yeah, bingo, the Ukrainian military action, and this whole thing
is cutting into Russia's continued ability to produce crude oil.
And they are, by the way, the third largest crude
oil producing country on the planet, behind the United States
and Saudi Arabia. So if oil production starts to fall
off in the third largest global producer, it matters to

(01:28):
the marketplace. And in addition to the war cutting in
to Russia's physical ability to continue to produce crude oil,
you have the United States and the President of the
United States pressuring countries that are buying crude oil from
Russia and knock that off too, And so all of
these things point to point to some decrease going forward

(01:51):
in Russian crude oil supplied to the global marketplace.

Speaker 1 (01:55):
Yeah, I know. As far as producing more oil here
in the United States, a lot of it is politics.
Certainly during the past administration when things weren't very friendly
for the oil industry, Yeah, we didn't see quite as
much production. I think that's correct me if I'm wrong,
But I think that's wrapped up a little bit under
President Trump, because I think the oil industry knows that
they have a friend, right now in the White House,
and that there are not going to be any policies

(02:17):
coming out that are going to make investment in new
oil rigs risky.

Speaker 2 (02:23):
Yeah, it was a tough four years under the Biden administration,
for sure. It just seems like those folks got out
of bed every day and exhibited kind of a foundational
contempt for the US domestic oil and gas industry who've
done such fantastic You just mentioned it at the beginning
of the segment. The people that get up and do
this hard work every day, people that put jobs of

(02:47):
money at risk to provide us with what we have
really achieved the thing we said we always wanted long
term abundant, affordable supply of US domestically used energy. That
has changed under Trump, thank goodness. And as you mentioned,
prices are lower for gasoline. That also means prices are

(03:10):
lower for crude oil. The rick count is nowhere near
what it was a couple of years ago. It's been
steadily declining over all that period of time. But even
given that, we're still producing more crude as we sit
here right now today in September of twenty twenty five,
we are producing more crude oil in the United States
than we ever have before. That's going to fall off

(03:32):
a little bit because of lower prices in the ric count,
but it's not going to fall off very much. That's
not going to fall off very fast. So we continue
to be a major supplier of US energy, not only
to our own economy, but increasingly around the world as
well well.

Speaker 1 (03:48):
The other thing that I've noticed, and I'm sure you
can speak to this far better than I can. The
other thing I've noticed now versus the past administration is
we don't seem to have the volatility and oil prices
that we had. Seem to be pretty steady on the prices.

Speaker 2 (04:03):
Stability is a wonderful thing for consumers, and there's no
doubt about that. Crude oil prices have fallen fairly dramatically
between twenty twenty four and twenty twenty five. But again
this is the consequence of stable US production and continued

(04:23):
and by the way, OPEC adding production back to the
marketplace and OPEC plus and pretty significant numbers in twenty
twenty five. So supply has generally gone up in terms
of global production in twenty twenty five. And if you've
got rising supply in the face of generally flat demand.

(04:44):
I mean, we don't have we don't have a recession
or any such thing in the US and in most
places around the world, but we don't have great growth
going great guns either. So again rising supply relative to
relatively flat demand. Prices have come down. As you mentioned,
this is a good thing for consumers, and gasoline prizes

(05:04):
have fallen this year, and I think consumers are appreciating
this all right.

Speaker 1 (05:08):
Last one for you, car, and that is the prices
has been trying to encourage Europeans to get their energy
from US. Do you think he's been successful in getting
that message across.

Speaker 2 (05:18):
I think he's been somewhat successful and may be more
successful going forward. I certainly hope that's the case. We
still have a handful of small ish pardon me, NATO
countries that are buying Russian crude oil. Mostly those offenders
are China and India, and we are continuing to export
greater volumes of crude oil out of the United States.

(05:40):
And I think the message ought to be both in
terms of crude oil and natural gas and liquified LNG
liquefied natural gas, the US can be a long term
reliable supplier of energy to you. Russian crude oil. It
may seem like a deal now, but it's always going
to be volatile, and it's always is going to be

(06:00):
an unreliable supply going forward, never mind the fact that
your conscience may not permit it. So yes, I hope
we can be more successful than going forward, and he
has had success in that thus far.

Speaker 1 (06:13):
All right, Carr, thank you as always appreciate your time, Sir,
car Ingram Texas the lines of energy producers