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Speaker 1: Now from our nation's capital. This is Bloomberg Sound On.

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Speaker 1: I'm a little bit unimpressed of the discipline and the

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Speaker 1: training level of the Russian forces ass had and as

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Speaker 1: terrific as it is, we want to make sure that

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Speaker 1: we do not see an escalation. Floomberg Sound on Politics,

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Speaker 1: Policy and perspective from DC's top name, I sent is

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Speaker 1: the commodity first who were made very high. Elevated certainly

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Speaker 1: over the next year, but it's probably first half of

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Speaker 1: the year. You Republicans want to give Democrat Day victory

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Speaker 1: on getting public China on a political basist, the answer

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Speaker 1: is no. Floomberg Sound On with Joe Matthew on Bloomberg Radio.

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Speaker 1: The Russian assaults on Ukraine intensifies as Washington debates jets

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Speaker 1: and oil. Welcome to the fastest hour in politics with

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Speaker 1: the latest on the war and the controversial transfer of

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Speaker 1: fighter jets from Poland to Ukraine. Will be joined in

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Speaker 1: just a moment by Congressman Roj Krista Morphey, Democrat from

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Speaker 1: Illinois and a member of the Permanent Select Committee on Intelligence.

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Speaker 1: Will also have the latest for us on whether we'll

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Speaker 1: have a budget before the lights go out Friday night, later,

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Speaker 1: we focus on oil and a conversation with Louisiana Senator

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Speaker 1: Bill Cassidy, who's now calling for Operation Warp Speed for

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Speaker 1: US energy as he calls it, even as the Biden

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Speaker 1: administration encourages more domestic drilling. We'll look at the hurdles

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Speaker 1: they face our panel Bloomberg Politics contributor Republican strategist Rick Davis,

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Speaker 1: along with Joel Rubin, former Deputy Assistant Secretary of State

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Speaker 1: who served in the Bush and Obama administrations. While Ukraine's

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Speaker 1: openness to a diplomatic solution was presented today reported exclusively

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Speaker 1: here on Bloomberg, helped to lift the markets, but the

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Speaker 1: news is no better. As we take air this evening,

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Speaker 1: Russian shelling of major cities continues. Ukrainian officials continue to

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Speaker 1: report civilian casualties even as evacuations continue or at least

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Speaker 1: attempted evacuations. Vice President Kamala Harris wheels up this morning

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Speaker 1: on the way to Warsaw meet with Polish leaders, just

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Speaker 1: a day after Poland offered to transfer MiG twenty nine

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Speaker 1: fighter jets to Ukraine. These are supersonic jets similar to

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Speaker 1: American made F fifteens. As we told you, Poland rolled

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Speaker 1: out a plan to send them to Ramstein Air Force

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Speaker 1: based in Germany. This is sound of one taken off

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Speaker 1: from where the US under this plan, would then transfer

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Speaker 1: them to Ukraine. About fifteen minutes after yesterday's program, the

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Speaker 1: Pentagon issued a statement saying no too complex, I believe

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Speaker 1: untenable was the word from John Kirby, could be interpreted

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Speaker 1: as an act of war, a sentiment that was echoed

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Speaker 1: today by Secretary of State Anthony B. Lincoln. Fighter jets

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Speaker 1: at the disposal of the United States government um departing

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Speaker 1: from a U S NATO based in Germany to fly

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Speaker 1: into airspace contested with Russia over Ukraine raises some serious

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Speaker 1: concerns for the entire NATO alliance. That message reinforced today

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Speaker 1: in the briefing room by White House Press Secretary Jensaki.

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Speaker 1: The proposal from yesterday that fighter jets man by Americans

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Speaker 1: departing a NATO base to fly into airspace contested contested

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Speaker 1: with Russia raises serious concerns for the United States and NATO.

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Speaker 1: So the logistical questions here, just to put a little

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Speaker 1: fine point on it, are things like how do you

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Speaker 1: get planes into Ukraine in a way that is not escalatory, um,

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Speaker 1: and what are the logistics and operational details of that?

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Speaker 1: Those are conversations are happening between counterparts at the military level,

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Speaker 1: and I would expect any update might come from them,

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Speaker 1: So ask the Pentagon. Now, how Minority Leader Kevin McCarthy

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Speaker 1: got into this, and he's weekly briefing today, he says,

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Speaker 1: the administration's wasting time. I think they're wrong. I think

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Speaker 1: that's the longer they take, more people will die. UM.

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Speaker 1: I don't understand if you can supply them with the javelin,

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Speaker 1: and Poland wants to give him miggs, and they want

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Speaker 1: to defend themselves. Why wouldn't you allow somebody to defend themselves,

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Speaker 1: especially when they believe in freedom. Especially this was unprovoked

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Speaker 1: putin his evil and what he's doing to these people

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Speaker 1: is devastating. It's not just America glued to the set.

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Speaker 1: The world is watching this. They're asking to defend themselves,

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Speaker 1: and many Democrats agree. Illinois Congressman RAJ Christiana Morphy co

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Speaker 1: signed a bipartisan letter calling on the President to continue

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Speaker 1: working with NATO to get these jets to Ukraine. And

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Speaker 1: he's with us right now. Congressman, I know you serve

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Speaker 1: on the Intelligence Committee, so your view is more informed

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Speaker 1: than most people having this debate. Welcome to the broadcast.

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Speaker 1: Is it possible to provide these jets without Russia seeing

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Speaker 1: it as an escalation? They're going to see anything that

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Speaker 1: we do as an escalation, Joe, I think the fact

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Speaker 1: of the matters we can't let putin decide what we're

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Speaker 1: going to do to help our friends defend their freedom.

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Speaker 1: And so when President Zelenski asked us in a zoom

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Speaker 1: call about a week ago week ago to either uh

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Speaker 1: enforce a no fly zone or give him the means

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Speaker 1: to do so, I think we should do whatever we can.

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Speaker 1: And in this case, I think we have to furnish

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Speaker 1: him with the means to do so and work with

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Speaker 1: the Poles and others to make it happen. What do

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Speaker 1: you say to those to those who are concerned about,

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Speaker 1: let's say Russia attacks our supply lines being used to

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Speaker 1: refuel or or rearm those jets, or where would we

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Speaker 1: fly them from? How would this actually operate? Have you

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Speaker 1: kind of worked that out in your head in a

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Speaker 1: way that would not put the US in direct engagement

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Speaker 1: with the Russians. Look, we got some extremely capable and

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Speaker 1: intelligent logistics officers in the US military who are working

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Speaker 1: with their Polish counterparts, I hope right now, and I

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Speaker 1: think they are trying to figure out how to do

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Speaker 1: this in the most expeditious way. UM. But the main

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Speaker 1: point is we've got to get it in there quick

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Speaker 1: because you can tell, UM, corridors to these various cities

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Speaker 1: are starting to get closed off. Yesterday, when I asked

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Speaker 1: General Barriers, who by the way, is is very capably

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Speaker 1: leading the Defense Intelligence Agency, the question of how long

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Speaker 1: can the people of Kiev whole out? He said ten

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Speaker 1: days to two weeks. That's the amount of food and

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Speaker 1: water they've got. And so that's why we need to,

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Speaker 1: you know, make sure that the Russians can't um, you know,

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Speaker 1: disrupt our convoys by taking to the skies and and

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Speaker 1: basically destroying any attempts to resupply UH and and enable

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Speaker 1: Craze to send themselves. Well, that was a deeply disturbing,

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Speaker 1: to be honest, hearing yesterday. It's something we discussed here

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Speaker 1: on sound On. With all of this in mind, I

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Speaker 1: know you're working up a package. It's doubled in size

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Speaker 1: in the last two weeks since the administration first requested

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Speaker 1: aid for Ukraine. It's tied to a budget that of

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Speaker 1: course needs to fund the government. And I understand that

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Speaker 1: talks have broken down a bit over COVID money and

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Speaker 1: so forth. Is that Ukraine money for instance, Uh, and

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Speaker 1: specifically going to be past this week? Congressman Yes, Um,

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Speaker 1: I see that happening today, and I think that, you know,

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Speaker 1: it's not a day too soon at this point. Now.

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Speaker 1: Not only that, but we're going to see an appropriations

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Speaker 1: package pass for the first time in a very long

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Speaker 1: time around here. I'm disappointed about the COVID funding and

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Speaker 1: the global vaccination funding that I'm helping the spearhead, but

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Speaker 1: we're working on a separate vehicle for that. But in

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Speaker 1: any case, Um, the Ukraine funding has the support of

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Speaker 1: Democrats and Republicans. I think there's a real unity of

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Speaker 1: spirit here. How about funding the government? Uh? Do you

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Speaker 1: see that being a continuing resolution until the details are

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Speaker 1: hammered out? No, I think it will. It will actually

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Speaker 1: get past as a proper appropriations package for once. I

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Speaker 1: don't think we're going to go into I'm hoping we

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Speaker 1: don't get into continuing resolution land, but I think that

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Speaker 1: we have to get it done before Friday Martial leventh,

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Speaker 1: and that is the plan right now, spending some time

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Speaker 1: on Bloomberg Sound On with the Congressman from Illinois, Congressman

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Speaker 1: Rajs Christiana Morphey, who, as I mentioned, signed the letter

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Speaker 1: calling on the President to work with NATO on the jets.

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Speaker 1: But you've also been, of course hearing briefings on a

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Speaker 1: regular basis, Congressman, and that's why I wanted to get

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Speaker 1: into that issue and some of the others with you

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Speaker 1: as as Vice President, Harris is on the ground starting

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Speaker 1: meetings in Warsaw. What are you hearing at least that

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Speaker 1: you can share with us as a committee member about

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Speaker 1: the state of this war in Ukraine. We've heard so

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Speaker 1: much about Ukrainian resistance, but the Russians are doubling down.

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Speaker 1: They're actually apparently going after full blown civilian targets according

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Speaker 1: to the Ukrainians and maternity ward today was hit. How

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Speaker 1: long can cities like Kiev hold on Well, First of all,

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Speaker 1: we have to condemn in the strongest terms as war crimes,

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Speaker 1: these insidious, barbaric attacks on civilian targets such as this

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Speaker 1: maternity hospital and Mario pole Um. Second, the Ukrainians are

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Speaker 1: mounting an incredible resistance. Joe, I don't think that the

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Speaker 1: Russians anticipated in the least the courage and fearlessness of

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Speaker 1: these Ukrainian fighters UH and and members of the armed forces. UM.

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Speaker 1: I think the best case scenario right now, given that

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Speaker 1: the Russians are doubling and tripling down, is UH to

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Speaker 1: basically help the Ukrainians UM whole fend off the Russians

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Speaker 1: in these four or five major cities, make sure that

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Speaker 1: they don't get in certain UM and then UM, you know,

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Speaker 1: bring them to a stalemate on the battlefield. UM. And

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Speaker 1: I think that that's what's happening. I have introduced legislation

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Speaker 1: with my Republican counterpart might turner the ranking Republican to

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Speaker 1: also prepare for another possibility, which is if the Russians

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Speaker 1: do over on the country, they're going to meet with

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Speaker 1: a ferocious insurgency and resistance. And we should prepare right

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Speaker 1: now to supply that resistance and that insurgency so that

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Speaker 1: its successful. I am convinced that they will be well.

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Speaker 1: That would that include some some higher range ground to

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Speaker 1: air missiles that might help them protect against an air invasion.

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Speaker 1: I think that we should do that now, and I

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Speaker 1: think the d D is actually looking at doing that

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Speaker 1: right now. Well to that end, we heard today from

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Speaker 1: Mark Esper, the former Secretary of Defense, who spoke with

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Speaker 1: my colleague David Weston on Balance of Power, to say

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Speaker 1: that he supports the MiGs. He wants to figure out

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Speaker 1: a way to do it, but he said there might

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Speaker 1: be something in greater needs. So that the tragedy that

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Speaker 1: is unfolding right now in Ukraine is one of the

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Speaker 1: indiscriminate shelling, a bombardment of Ukrainian cities by Russia, and

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Speaker 1: most of that, it appears, is not occurring through air

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Speaker 1: strikes but through a ground based artillery, cruise, missiles, etcetera.

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Speaker 1: So I think what we need to do is figure

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Speaker 1: out a way to tackle that issue, and there have

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Speaker 1: been a number of ideas out there. Obviously, we need

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Speaker 1: to continue to provide the Ukrainians with anti tank and

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Speaker 1: anti air missiles. H An idea was floated to provide

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Speaker 1: them with S three hundred and S four hundred, which

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Speaker 1: are Russian built medium sized air defense systems that would

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Speaker 1: be very helpful as well. Congress from Christian Worthy or

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Speaker 1: those the kind of weapons that you would send to Ukraine.

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Speaker 1: Now that general family I mean, there's there's other types

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Speaker 1: of weapons out there like essay eights and s A

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Speaker 1: tens that our surface to air systems that even some

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Speaker 1: of our NATO allies possessed within their inventories from their

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Speaker 1: Soviet are days. There are a number of options. Again,

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Speaker 1: we have an incredible uh Department of Defense as well

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Speaker 1: as an intelligence community that's working hand in glove to

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Speaker 1: kind of figure out how do we do this. UM.

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Speaker 1: I think that what we are telling them UM. And

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Speaker 1: again I don't think they need this message. I think

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Speaker 1: the BI administration is capably handling this. But Uh, speed

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Speaker 1: is of the essence. Speed is of the essence because

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Speaker 1: the Russians. What we've also heard from CIA Director of Congressman,

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Speaker 1: I wish I had more time. Roger Krista Morphy, thank

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Speaker 1: you for being with us on Bloomberg Sound On to

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Speaker 1: get the ball rolling here Illinois's eighth congressional districts speaking

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Speaker 1: to America on Bloomberg Radio and coming up, we assembled

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Speaker 1: the handle Bloomberg Politics contributor Rick Davis here with Joel Ruben.

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Speaker 1: This is Bloomberg. You're listening to Bloomberg you sound on

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Speaker 1: with Joe Matthew on Bloomberg Radio reviewing Ukraine headlines on

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Speaker 1: the terminal is a doomed scroll today. Ukraine Russia trade

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Speaker 1: warnings over gas flows, some evacuations continue ahead of deadline,

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Speaker 1: Russian inflation takes off as sanctions bite, and attacks on

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Speaker 1: health facilities in Ukraine killed ten. World Health Organization says

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Speaker 1: that's referring to the parent bombing that we were discussing

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Speaker 1: a little while ago with the congressman from Illinois of

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Speaker 1: an eternity hospital, Marry yupl. That's some tough stuff here

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Speaker 1: as we assemble the panel and review what we just

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Speaker 1: discussed with the congressman. Bloomberg Politics contributor and Republican strategist

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Speaker 1: Rick Davis as with us along with Joel Rubin, former

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Speaker 1: Deputy Assistant Secretary of State served in the Bush, and

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Speaker 1: Obama administration's co host of The Really American's new foreign

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Speaker 1: policy podcast, Warning Shot. It's great to have both of

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Speaker 1: you guys here. Rick, we've been talking about the MiGs

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Speaker 1: since last week. In fact, you first presented some of

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Speaker 1: the complications that officials we're going to have to deal

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Speaker 1: with long before this was on the front page. This

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Speaker 1: is a real story now. Vice President Kamala Harris is

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Speaker 1: in Warsaw. The administration says that's not her agenda, but

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Speaker 1: clearly this is something that needs to be discussed here

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Speaker 1: in Pentagon. Officials are doing so knowing the potential risk involved.

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Speaker 1: Is it the right thing to follow the polls and

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Speaker 1: take those jets to Ukraine. Well, it's just the issue

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Speaker 1: of escalation or de escalation. And from these UH intelligence

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Speaker 1: community UH talked on Capitol Hill this week, it's pretty

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Speaker 1: clear that they were kind of taking a stance that

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Speaker 1: de escalation is UH is the approach that we should

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Speaker 1: try to take. That we you know, try to keep

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Speaker 1: going tip for tap with UH. Putent could be a

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Speaker 1: critical issue and UM, so it doesn't surprise me that

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Speaker 1: I'm sure the Polish authorities thought they were doing the

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Speaker 1: right thing by offering us the jets and we turned

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Speaker 1: them down. So it looks a little sloppy. For the

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Speaker 1: first time in this administration's conduct of the war. It

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Speaker 1: looks like we really weren't sure what the outcome was

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Speaker 1: going to be. UM. Lots of different options, as Secretary

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Speaker 1: Asper said earlier on the program with David Wesson, and

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Speaker 1: I just hope we're pursuing all good options. UH. If

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Speaker 1: if indeed the de escalation strategy is the one that

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Speaker 1: the administration is pursuing. Should the administration, Joel be trying

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Speaker 1: to close the deal on this or is it too dangerous? Well,

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Speaker 1: it's certainly risky, and there there is danger to it. Uh.

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Speaker 1: The administration is doing everything at canvas support Ukrainian military's

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Speaker 1: building depend itself and and uh, Frankly, there's an assessment

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Speaker 1: out today that Russia is not dominated or taking total

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Speaker 1: control of the sky, So it's an open question, but

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Speaker 1: certainly supporting Poland would have been optimal. There's a desire

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Speaker 1: to have that be done so that niggs do get

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Speaker 1: in the hands of the Ukrainian Air Force, which was

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Speaker 1: decimated at the beginning of the war. And I agree

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Speaker 1: with Rick, this is sort of the first operational hiccup

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Speaker 1: that we're seeing. And this is the nitty gritty stuff,

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Speaker 1: and no one wants escalation, but certainly the kind of

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Speaker 1: indiscriminate bombing that we're seeing day and day out, such

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Speaker 1: as you described it in the front end of the show,

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Speaker 1: is just intolerable. Uh, And and and and continuing to

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Speaker 1: to provide the kind of supports the Ukrainian military to

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Speaker 1: prevent that is key. That looks like it's going to

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Speaker 1: be ending anytime soon. Rick, it could get a lot

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Speaker 1: worse still in the days ahead. With that said, and

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Speaker 1: the Congressman's suggestion that we start preparing the insurgency, Now,

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Speaker 1: what else do we need to get into the country. Well,

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Speaker 1: obviously equipment, right and and and that's going to be

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Speaker 1: critical even this in this you know, current stage of

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Speaker 1: the fighting, these Ukrainians just need more battlement in order

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Speaker 1: to offset the Russian advantage of numbers and equipment. So

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Speaker 1: that's number one. Umber two is keeping that political leadership alive, right,

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Speaker 1: It's incredibly important in an insurgency that um, they have

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Speaker 1: the kind of telegenic leadership that they're getting from President Zelinsky,

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Speaker 1: and if anything happens to him, it would definitely be

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Speaker 1: a major setback. But I think we've got to believe

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Speaker 1: what the intelligence uh CIA director said that Putin's doubling down,

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Speaker 1: and so this war is a long way away from

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Speaker 1: from entering into an insurgency, Joel, does that sound like

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Speaker 1: a greater air war to you? Or we see tanks

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Speaker 1: rolling into cities say this weekend, you know I'm hearing

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Speaker 1: from administration officials there may be up to left of

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Speaker 1: Putin's ordinance in in the uh In stock, so they

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Speaker 1: have a lot of of gunfire left, a lot of

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Speaker 1: powder uh left. I'm not saying exactly the way I

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Speaker 1: wanted to say it, but basically there's a nightmare scenario

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Speaker 1: up ahead where prudent can continue to fire discriminately for

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Speaker 1: a very long time. The question is to what end

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Speaker 1: at what cost to him? Uh They're feeling to squeeze

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Speaker 1: in Moscow and across Russia. These sanctions are powerful. They

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Speaker 1: are damaging the Russian economy. The oil embargo now by

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Speaker 1: the US is another level level of of pain on Russia.

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Speaker 1: Uh as Rick described the continuing supply of the Ukrainian military,

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Speaker 1: and the Ukrainians are fighting incredibly effectively with what they have.

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Speaker 1: Russia's feeling to squeeze, so it's going to be more

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Speaker 1: pain though, and Putin certainly has backed himself into a

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Speaker 1: corner where he he understands that he is he's trapped

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Speaker 1: in this dynamic now and he may very well go

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Speaker 1: much more heavy to try to get get a break

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Speaker 1: this salemate. Rick their reports now in our final minute

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Speaker 1: here about a breakdown and negotiations over the budget on

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Speaker 1: Capitol Hill. Are they going to get the Ukrainian money

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Speaker 1: out this week? Yeah? I think they're kind of money

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Speaker 1: and the omnibus will get through kind of his plan.

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Speaker 1: I mean, it's a little more rancor than it should be,

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Speaker 1: but I don't think they're gonna skip over that. I

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Speaker 1: think the loser and all this, the administration's effort to

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Speaker 1: try and get additional COVID funds just too difficult for

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Speaker 1: both of it out right there, going back to the

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Speaker 1: Rules committe According to the Speaker, the House that's been

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Speaker 1: kicked out, and I think the rest of it will

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Speaker 1: go back, you know, and pass through in due time,

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Speaker 1: certainly by Saturday, and and that will be seen as

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Speaker 1: a bipartisan effort. But that helps the medicine go down. Rick,

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Speaker 1: pull the COVID money out and it passes. Correct. Rick

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Speaker 1: Davis and Joel Reuben with us our panel for today

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Speaker 1: and for the hour. They'll be back a little bit

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Speaker 1: later on coming up, we jump into the oil patch

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Speaker 1: with Senator Bill Cassidy of Louisiana and take a look

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Speaker 1: at what exactly is keeping domestic drillers from producing more.

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Speaker 1: It might not be as simple as the politicians are

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Speaker 1: saying We'll check markets and traffic on the way. I'm

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Speaker 1: Joe Matthew. This is Bloomberg broadcasting live from our nation's capital,

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Speaker 1: Bloomberg to New York, Bloomberg eleven, Frio to Boston, Bloomberg

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Speaker 1: one six, one to San Francisco, Bloomberg nine six to

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Speaker 1: the Country, Serious ten General, one nine team, and around

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Speaker 1: the globe the Bloomberg Business app and Bloomberg Radio dot Com.

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Speaker 1: This is Bloomberg Sound On with Joe Matthew. Operation warp

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Speaker 1: Speed worked for a COVID vaccine, How about for oil?

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Speaker 1: Republican Senator Bill Cassidy is calling for that very thing

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Speaker 1: to speed domestic production more drilling following the Russian oil

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Speaker 1: band But but wait, didn't the President say drillers could

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Speaker 1: just start today if they wanted. We're joined now by

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Speaker 1: Senator Bill Cassidy, Republican from Louisiana. Senator, welcome back to Bloomberg. Hey,

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Speaker 1: it is good to be with Bloomberg. You have great programming.

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Speaker 1: Please be part of it. Well, that's great. I know

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Speaker 1: you supported banning Russian oil. Senator, I know you want

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Speaker 1: to see more domestic production. How though, do we fill

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Speaker 1: the gap in the near terms? Seven hundred thousand barrels

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Speaker 1: a day. I know it's not a lot, but is

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Speaker 1: it possible to do that by working here in the US. Yes,

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Speaker 1: it is um um so so thing. We've proposed as

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Speaker 1: an operation warp speed for permitting. Just like for vaccine development,

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Speaker 1: all the relevant agencies were brought into one room and

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Speaker 1: they were not allowed to slow walk. If this didn't

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Speaker 1: work for this agency because of another agency's actions, it

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Speaker 1: was resolved there. We need to do that for oil production.

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Speaker 1: One example. Obviously, the Biden administration killed the Keystone XL

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Speaker 1: pipeline the first week he was in office. That slows

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Speaker 1: the transfer of oil from Canada to our refineries. If

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Speaker 1: we could permit increase transit by boat or by rail,

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Speaker 1: then then we could at least partially make up for

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Speaker 1: that which we're currently not getting what we will soon

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Speaker 1: not be getting from Russia. What kind of a timeline

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Speaker 1: are you looking at? There? Are we weeks away from

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Speaker 1: making that happen or months away? Senator, Well, a couple

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Speaker 1: of things. The the I don't recall the latest version.

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Speaker 1: I haven't seen that which the Biden administration put out.

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Speaker 1: But first, the the congressional proposals to ban oil would

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Speaker 1: take place in either fifteen or thirty days. According to

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Speaker 1: the different this was forty five days. From what I

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Speaker 1: under that's based on our reporting, not on what the

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Speaker 1: White House has said. I it's forty five days. And

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Speaker 1: that tells us that we have seven weeks before that

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Speaker 1: runs out, if you will. Um, But so, so what

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Speaker 1: is really there for What is the tank capacity and

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Speaker 1: what is the barge capacity and that we could begin

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Speaker 1: to use to bring that oil from Canada down to

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Speaker 1: our Gulf coast ports. I love this gular five days.

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Speaker 1: You just got to get the relevant agencies in the

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Speaker 1: same room. One. If you can't slow walk, you all

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Speaker 1: got to walk out of here with the decision made.

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Speaker 1: And so that should be able to be done in

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Speaker 1: those seven weeks. The President made the point yesterday that

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Speaker 1: oil companies do not need permission to start drilling. Morey

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Speaker 1: said of leases are on public lands, nine thousand unused

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Speaker 1: drilling permit. Senator, If that's true, what are they waiting for? Yeah,

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Speaker 1: that's that's just that is a total misrepresentation of that

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Speaker 1: which is out there, and it's part of a pattern

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Speaker 1: of being disingenuous by this administration. You may have the lease,

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Speaker 1: but you gotta Let's let's just take a lease on

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Speaker 1: the Outer Continental shelf off Louisiana. You have the lease,

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Speaker 1: but then you have to do seizemic. You have to

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Speaker 1: get a permit to do seizemic, to make sure that

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Speaker 1: the oil reserve is that which you think it to be,

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Speaker 1: or that you have a complete understanding. They can slow

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Speaker 1: walk that that permit of the sizemic. There are multiple

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Speaker 1: permits required after you get a lease, so they do

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Speaker 1: need to ask for permission then, absolutely, And that's what's

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Speaker 1: so frustrating. The President is deliberately misleading the American people

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Speaker 1: about something which they're paying five dollars a gallon, and

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Speaker 1: he's misleading them of gasoline, and he's misleading them as

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Speaker 1: to their efforts. Let's be honest with the American people,

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Speaker 1: because until you're honest, you can't begin to have real solutions.

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Speaker 1: So how long would that process take? If if Cassidy

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Speaker 1: drilling wanted to start tomorrow, You've got the permit, what

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Speaker 1: other permissions would you need? How long would it take

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Speaker 1: before you had drills in the ground. I spoke to

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Speaker 1: the woman in charge of a major oil company's drilling

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Speaker 1: in the Outer Continental shell, which takes longer, by the way,

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Speaker 1: than it would if you're fracking in West Texas or

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Speaker 1: New Mexico. She said, if she had all her permits

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Speaker 1: done tomorrow, she could complete the project in twelve months.

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Speaker 1: Now that's not after seven weeks, but that's before, you know,

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Speaker 1: that's seven months, that's before. Um, that's pretty good. Assume

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Speaker 1: me twelve months. And now if you're going to start fracking,

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Speaker 1: you can actually if you open up federal lands in

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Speaker 1: in again in Texas or New Mexico, more New Mexico

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Speaker 1: than Texas, to begin to frack, you can get that

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Speaker 1: going in seven weeks. Are are are two months that

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Speaker 1: can happen more quickly. So, but then you need your

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Speaker 1: permits for the pipelines, for your uh, you know, it's

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Speaker 1: just the whole array of things. The administration can make

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Speaker 1: this happen. And if they put everybody in a room

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Speaker 1: and we don't walk out until differences are resolved, we

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Speaker 1: need an operation warp speed for energy production. Are you

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Speaker 1: putting that into legislation that will get support from your colleagues?

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Speaker 1: Do we see a legislative response to this on Capitol Hill? Absolutely,

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Speaker 1: We're going to release some policy guidelines this week. UM

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Speaker 1: that uh. And we already are speaking to my both

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Speaker 1: Democrat and Republican colleagues. You need sixty votes in the

429
00:24:28,440 --> 00:24:31,560
Speaker 1: Senate to pass something, so you're gonna need both parties engaged,

430
00:24:32,440 --> 00:24:35,280
Speaker 1: but sixty votes. And we are releasing it this week

431
00:24:35,680 --> 00:24:39,399
Speaker 1: and we um will begin and we've started already started

432
00:24:39,440 --> 00:24:43,159
Speaker 1: to draft the legislation, but of course would receive input

433
00:24:43,240 --> 00:24:45,840
Speaker 1: from colleagues as to how to make it, you know better,

434
00:24:46,240 --> 00:24:48,720
Speaker 1: are are more palatable if you will, If you want

435
00:24:48,720 --> 00:24:51,280
Speaker 1: to ban Russian oil, why not also while we're at it,

436
00:24:51,359 --> 00:24:55,600
Speaker 1: band Venezuelan oil, Iranian oil, Saudi Arabian oil, because that

437
00:24:55,640 --> 00:25:00,600
Speaker 1: could be what replaces it. Well, so you know, obviously

438
00:25:00,600 --> 00:25:04,679
Speaker 1: for geopolitical reasons, we are trying to isolate Russia. Uh

439
00:25:04,720 --> 00:25:09,280
Speaker 1: and um uh, So I get why why we why

440
00:25:09,320 --> 00:25:12,639
Speaker 1: we ban Russian oil. Now they're going to probably just

441
00:25:12,680 --> 00:25:15,200
Speaker 1: begin to sell this oil to China, and so whoever

442
00:25:15,320 --> 00:25:19,159
Speaker 1: China is buying from will sell to us now. So

443
00:25:19,200 --> 00:25:21,400
Speaker 1: there's going to be in the intermediate term, I say

444
00:25:21,440 --> 00:25:25,199
Speaker 1: intermediate three to four months, a rebalancing of where oil

445
00:25:25,320 --> 00:25:28,760
Speaker 1: goes around the world. Now, probably the Chinese, being the

446
00:25:28,800 --> 00:25:31,080
Speaker 1: business folks they are, will buy the Russian oil at

447
00:25:31,119 --> 00:25:34,639
Speaker 1: a discount, So Russia will not get as much money

448
00:25:34,720 --> 00:25:36,760
Speaker 1: because they know there's only one market to buy at

449
00:25:36,760 --> 00:25:39,400
Speaker 1: the Chinese, and so they will pay a discount. So

450
00:25:39,480 --> 00:25:42,480
Speaker 1: we can anticipate that. But that will free up oil

451
00:25:42,560 --> 00:25:46,000
Speaker 1: from someplace else to come to our refineries, and that's

452
00:25:46,000 --> 00:25:48,800
Speaker 1: good for the American consumer. I know we're type for time, Senator,

453
00:25:48,920 --> 00:25:51,639
Speaker 1: I understand there could be an omnibus budget passed in

454
00:25:51,760 --> 00:25:55,160
Speaker 1: time before the deadline on Friday night. Do you see

455
00:25:55,160 --> 00:25:58,160
Speaker 1: that happening? Yes, I do, but it's certainly a short term.

456
00:25:58,160 --> 00:26:00,880
Speaker 1: If not the omnibus, and if it rolls over into

457
00:26:00,880 --> 00:26:04,600
Speaker 1: the wee hours of Friday, that may occur. But nonetheless

458
00:26:04,640 --> 00:26:07,280
Speaker 1: I do imagine it passing. Senator, I know that you

459
00:26:07,320 --> 00:26:10,840
Speaker 1: helped to craft the now Law, the Infrastructure Law, and

460
00:26:10,880 --> 00:26:12,879
Speaker 1: a lot of the money for these projects will be

461
00:26:13,000 --> 00:26:16,320
Speaker 1: unlocked in this omnibus budget. Will people start seeing work

462
00:26:16,320 --> 00:26:19,320
Speaker 1: in their neighborhoods, Well, they should already have seen work

463
00:26:19,400 --> 00:26:22,920
Speaker 1: already because large tranches of the money have been released,

464
00:26:23,320 --> 00:26:25,480
Speaker 1: but there will be an ongoing release and it will

465
00:26:25,520 --> 00:26:27,720
Speaker 1: be part of this as well. Let me point out,

466
00:26:27,720 --> 00:26:30,400
Speaker 1: since we're talking about energy, there's a lot of things

467
00:26:30,400 --> 00:26:33,840
Speaker 1: in the INN and the bipartisan Infrastructure build that relate

468
00:26:33,920 --> 00:26:37,440
Speaker 1: to carbon mitigations. So folks who are concerned, wait a second,

469
00:26:37,440 --> 00:26:41,240
Speaker 1: we're producing oil and gas, what about emissions. There is

470
00:26:41,520 --> 00:26:47,480
Speaker 1: in the infrastructure bill billions two for carbon capture sequestration

471
00:26:47,600 --> 00:26:51,320
Speaker 1: for the pipelines to enable direct air capture, hydrogen hubs, etcetera.

472
00:26:51,680 --> 00:26:55,480
Speaker 1: But we need permitting reform for that too. Unless we

473
00:26:55,520 --> 00:26:58,360
Speaker 1: have permitting reforms, it's going to take years for these

474
00:26:58,400 --> 00:27:01,159
Speaker 1: to get off the shelf. We need operation warp speed

475
00:27:01,240 --> 00:27:04,040
Speaker 1: for permitting reform. Fascinating take on the work to be done.

476
00:27:04,080 --> 00:27:06,360
Speaker 1: Senator Bill Cassidy, thank you so much for your time

477
00:27:06,400 --> 00:27:10,920
Speaker 1: again today on Bloomberg. Thank you. So the Senators set

478
00:27:10,920 --> 00:27:14,320
Speaker 1: a lot there accusing the administration of being disingenuous about

479
00:27:14,320 --> 00:27:18,320
Speaker 1: this issue, particularly about drilling. The argument spilled over into

480
00:27:18,320 --> 00:27:23,560
Speaker 1: the White House briefing room today with Press Secretary Jen Psaki.

481
00:27:23,640 --> 00:27:27,000
Speaker 1: An interesting exchange here with the Fox News reporter Peter Doocey,

482
00:27:27,200 --> 00:27:32,880
Speaker 1: remembering that the President referred to nine thousand unused drilling permits,

483
00:27:32,880 --> 00:27:35,240
Speaker 1: said they could get to this tomorrow. Here's Jen Saki.

484
00:27:35,359 --> 00:27:39,000
Speaker 1: First of all, the nearly six of least acres remain

485
00:27:39,080 --> 00:27:42,040
Speaker 1: non producing. That's a lot in the range of twenty

486
00:27:42,080 --> 00:27:46,920
Speaker 1: million acres. So there are nine thousand unused approved permits

487
00:27:46,920 --> 00:27:49,199
Speaker 1: to drill and they should not require that, should not

488
00:27:49,200 --> 00:27:52,159
Speaker 1: require us inviting them to do that. They should do

489
00:27:52,240 --> 00:27:56,159
Speaker 1: that themselves. Additional permits, so would press What additional permits

490
00:27:56,200 --> 00:27:58,600
Speaker 1: do they need? There's no they have. The leases are there,

491
00:27:58,640 --> 00:28:01,280
Speaker 1: the permits are there. Don't think they need an embroidered

492
00:28:01,359 --> 00:28:04,919
Speaker 1: invitation to drill. That is their oil companies. What is

493
00:28:05,040 --> 00:28:08,119
Speaker 1: what is happening? What has happened? But what is the

494
00:28:08,119 --> 00:28:11,200
Speaker 1: permits have been granted? Peter? What is what is happening

495
00:28:11,240 --> 00:28:14,920
Speaker 1: here is that we are seeing these are private sector companies.

496
00:28:15,119 --> 00:28:18,919
Speaker 1: We recognize that many of them are making record profits.

497
00:28:19,160 --> 00:28:22,480
Speaker 1: We see that that is all publicly available data. They

498
00:28:22,560 --> 00:28:26,600
Speaker 1: have pressure to return cash to investors and their shareholders.

499
00:28:26,800 --> 00:28:29,720
Speaker 1: What we're saying right now is there is a war.

500
00:28:30,200 --> 00:28:36,000
Speaker 1: We're asking them to to go uh, use the approved permits,

501
00:28:36,280 --> 00:28:40,280
Speaker 1: use the unused space, and go get more supply out

502
00:28:40,280 --> 00:28:42,960
Speaker 1: of the grounds in our own country. Okay, there's Jen

503
00:28:43,080 --> 00:28:45,520
Speaker 1: Saki in the briefing room today. Now you've heard both

504
00:28:45,560 --> 00:28:48,040
Speaker 1: sides of this. You heard from a White house, you

505
00:28:48,120 --> 00:28:51,000
Speaker 1: heard from the Republican senator from Louisiana. We wanted to

506
00:28:51,000 --> 00:28:54,560
Speaker 1: talk with somebody who's been researching this independently. Steve ellis

507
00:28:55,600 --> 00:28:58,120
Speaker 1: the president of the group Taxpayers for Common Sense and

508
00:28:58,200 --> 00:29:02,720
Speaker 1: independent nonpartisan voice, as they say, for taxpayers. His take

509
00:29:02,840 --> 00:29:07,640
Speaker 1: on this, from his perspective, it goes beyond leases and permits,

510
00:29:07,680 --> 00:29:10,400
Speaker 1: and you know, are all of those going to be

511
00:29:10,480 --> 00:29:12,840
Speaker 1: good wells or not? And in the fact of the matter,

512
00:29:12,920 --> 00:29:15,479
Speaker 1: isn't that there they are squatting on a lot of

513
00:29:15,640 --> 00:29:20,440
Speaker 1: permitted um projects, particularly on shore that you can't make

514
00:29:20,480 --> 00:29:24,320
Speaker 1: them drill. You can't make them drill. But if you're

515
00:29:24,360 --> 00:29:27,680
Speaker 1: the administration saying that they can drill any time they want,

516
00:29:27,720 --> 00:29:31,239
Speaker 1: they can start tomorrow, is that an honest statement in

517
00:29:31,360 --> 00:29:33,640
Speaker 1: some cases? Yes? Um, And you know, I thought it

518
00:29:33,680 --> 00:29:35,960
Speaker 1: was interesting with Center Cassidy. I mean, he was saying,

519
00:29:36,080 --> 00:29:38,800
Speaker 1: you know, it takes about seven weeks for um, you know,

520
00:29:38,840 --> 00:29:40,560
Speaker 1: he saw about West Texas which has got to be

521
00:29:40,560 --> 00:29:43,560
Speaker 1: private land not public land. But then um, you know,

522
00:29:43,720 --> 00:29:46,160
Speaker 1: or then it takes up to a year for offshore

523
00:29:46,360 --> 00:29:51,920
Speaker 1: well right now, particularly the oil industry, and there advocates

524
00:29:52,000 --> 00:29:54,920
Speaker 1: in Congress, Um, you know they're gonna say whatever is

525
00:29:54,920 --> 00:29:57,120
Speaker 1: going to be advancing in the best interests of the

526
00:29:57,120 --> 00:29:59,680
Speaker 1: oil and gas industry, and that's flexibility, and that is

527
00:30:00,360 --> 00:30:03,240
Speaker 1: let them get whatever they want in their pocket and

528
00:30:03,280 --> 00:30:06,480
Speaker 1: then maybe they'll drill. Do you have a sense of

529
00:30:06,520 --> 00:30:08,920
Speaker 1: how much red tape is involved? If I'm using the

530
00:30:09,000 --> 00:30:13,160
Speaker 1: right term for an oil company to begin drilling on

531
00:30:13,960 --> 00:30:16,920
Speaker 1: least land something that's already permitted, is there any more

532
00:30:17,000 --> 00:30:21,320
Speaker 1: red tape? I mean, certainly there are requirements, and some

533
00:30:21,400 --> 00:30:24,120
Speaker 1: of that's about making sure that people are protected from

534
00:30:24,120 --> 00:30:26,440
Speaker 1: long term liabilities and that you know, you don't have

535
00:30:26,480 --> 00:30:29,920
Speaker 1: the nut deep water horizon, or you don't have you know,

536
00:30:30,160 --> 00:30:33,360
Speaker 1: leaks and spills on public lands. And so it's not

537
00:30:33,520 --> 00:30:36,960
Speaker 1: clear to say exactly that there's all these other hurdles

538
00:30:37,000 --> 00:30:40,480
Speaker 1: because people are at different stages of the race. Steve

539
00:30:40,520 --> 00:30:45,400
Speaker 1: ellis taxpayers for common sense there, so lo and behold.

540
00:30:47,240 --> 00:30:50,760
Speaker 1: It's not as simple as the politicians are telling you.

541
00:30:51,640 --> 00:30:53,640
Speaker 1: Interesting when I was talking to Steve, he referred to

542
00:30:53,680 --> 00:30:56,600
Speaker 1: a Bloomberg story, an interview that we had a month

543
00:30:56,640 --> 00:31:01,200
Speaker 1: ago with the chief executive officer of Pioneer, Scott Sheffield

544
00:31:02,040 --> 00:31:10,040
Speaker 1: Bloomberg TV, when he told us about his reluctance to

545
00:31:10,200 --> 00:31:13,840
Speaker 1: drill more to produce more even if asked now, UH,

546
00:31:14,120 --> 00:31:17,320
Speaker 1: Pioneer will stay with our plan. We announced a CAPEX plan,

547
00:31:17,800 --> 00:31:19,840
Speaker 1: as I said, regardless of whether it's a hundred fifty

548
00:31:19,880 --> 00:31:23,240
Speaker 1: dollar oil, two oil or a hundred dollar or We're

549
00:31:23,280 --> 00:31:26,120
Speaker 1: not gonna change our growth plans. It's gonna be up

550
00:31:26,120 --> 00:31:29,040
Speaker 1: to Saudi and U a E. They have a packed

551
00:31:29,040 --> 00:31:32,320
Speaker 1: with OPEC plus UH. They probably are about the only

552
00:31:32,360 --> 00:31:35,200
Speaker 1: two countries that could change that UH, and they'll have

553
00:31:35,240 --> 00:31:38,200
Speaker 1: to decide what to do into that scenario. If if

554
00:31:38,240 --> 00:31:43,120
Speaker 1: Russian oil is sanctioned, or if Russia decides to UH

555
00:31:43,240 --> 00:31:46,040
Speaker 1: stop exporting, then it's gonna be up to the Saudis

556
00:31:46,080 --> 00:31:48,600
Speaker 1: and U A's to decide whether or not to break

557
00:31:48,640 --> 00:31:51,720
Speaker 1: the pack and increase production under those guidelines. Right, So

558
00:31:51,760 --> 00:31:58,440
Speaker 1: there you go. That's February. Scott Sheffield who came back

559
00:31:58,480 --> 00:32:01,200
Speaker 1: on Bloomberg today and spoke Creedy gooped at the SERI

560
00:32:01,280 --> 00:32:06,680
Speaker 1: Week conference down in Houston, same issue, same story. Here

561
00:32:06,680 --> 00:32:10,200
Speaker 1: he is today. It's important that we that the administration

562
00:32:10,360 --> 00:32:14,080
Speaker 1: re engages with OPEC and especially Saudi Arabia and U

563
00:32:14,160 --> 00:32:17,560
Speaker 1: a E. Because they have the only excess of capacity

564
00:32:17,720 --> 00:32:19,959
Speaker 1: in the world today. So why do you think there

565
00:32:20,040 --> 00:32:23,280
Speaker 1: is that disconnect between Saudi Arabia the UAE. There was

566
00:32:23,280 --> 00:32:25,560
Speaker 1: a report that they're not even willing to take President

567
00:32:25,600 --> 00:32:27,920
Speaker 1: Biden's calls this morning. Why do you think there's that

568
00:32:27,960 --> 00:32:31,400
Speaker 1: disconnect between the Biden administration and the Middle East. It

569
00:32:31,480 --> 00:32:34,680
Speaker 1: probably goes back to the Koshogi incident, uh and some

570
00:32:34,720 --> 00:32:37,320
Speaker 1: of the remarks that Biden said while he was running

571
00:32:37,360 --> 00:32:41,800
Speaker 1: against Trump. Still not gonna drill, and still questioning the

572
00:32:41,840 --> 00:32:45,000
Speaker 1: administration's public stand on all of this. Pointing to the

573
00:32:45,000 --> 00:32:50,160
Speaker 1: Middle East, you want more oil, call the Saudis, as

574
00:32:50,200 --> 00:32:53,280
Speaker 1: I see the headline, Saudi and Emirati leaders decline calls

575
00:32:53,280 --> 00:32:59,240
Speaker 1: with Biden during Ukraine crisis. As Creedy just mentioned, So

576
00:32:59,240 --> 00:33:01,160
Speaker 1: where are we going for here? If we need more

577
00:33:01,160 --> 00:33:04,520
Speaker 1: domestic oil? We reassemble the panel. Rick Davis is with

578
00:33:04,600 --> 00:33:07,560
Speaker 1: US Bloomberg Politics contributor along with Joel Rubin, former Deputy

579
00:33:07,560 --> 00:33:11,120
Speaker 1: Assistant Secretary of State, served in both the Obama and

580
00:33:11,160 --> 00:33:14,960
Speaker 1: Bush administrations on political, military, Near Eastern and legislative affairs.

581
00:33:16,040 --> 00:33:18,680
Speaker 1: Thanks for both of you being here, Rick, what do

582
00:33:18,720 --> 00:33:21,520
Speaker 1: you make of this? We're hearing different stories that don't

583
00:33:21,520 --> 00:33:23,920
Speaker 1: line up from both sides of the aisle. And then

584
00:33:23,920 --> 00:33:26,600
Speaker 1: when you hear from the drillers themselves, they say, hey, look,

585
00:33:26,600 --> 00:33:29,400
Speaker 1: we've already been burned. We're giving our money back to shareholders.

586
00:33:29,600 --> 00:33:31,880
Speaker 1: How do you kept more domestic oil in this world?

587
00:33:32,200 --> 00:33:35,040
Speaker 1: You know, I thought Cenator Cassidy had the best suggestion

588
00:33:35,080 --> 00:33:37,680
Speaker 1: I've heard, and that is to like get everybody who

589
00:33:37,680 --> 00:33:39,640
Speaker 1: as a producer in a room in the White House

590
00:33:39,800 --> 00:33:41,640
Speaker 1: and lock the door and come out with a deal.

591
00:33:41,680 --> 00:33:45,080
Speaker 1: I mean President Biden did that with the beef industry,

592
00:33:45,080 --> 00:33:47,120
Speaker 1: and we kind of laughed about that, right, I mean's like,

593
00:33:47,200 --> 00:33:50,760
Speaker 1: holy smokes, beef providers, they're gonna sentila of the economy

594
00:33:50,840 --> 00:33:55,000
Speaker 1: under that versus the energy providers, who in a can

595
00:33:55,080 --> 00:33:57,800
Speaker 1: really help the country. And and so like, why not

596
00:33:57,920 --> 00:34:00,959
Speaker 1: do for the energy industry you were willing to do

597
00:34:01,040 --> 00:34:04,480
Speaker 1: for the beef industry, Joel, who's telling the truth here?

598
00:34:04,520 --> 00:34:07,959
Speaker 1: Can drillers start tomorrow based on what you were just

599
00:34:08,040 --> 00:34:11,480
Speaker 1: hearing from from a Republican, a Democrat and a researcher

600
00:34:11,560 --> 00:34:14,360
Speaker 1: somewhere in between, or do we need to restart this

601
00:34:14,440 --> 00:34:18,120
Speaker 1: conversation and be a little more honest about it. Well,

602
00:34:18,120 --> 00:34:20,280
Speaker 1: you know, Joe, I mean, we're going to hit record

603
00:34:20,360 --> 00:34:23,960
Speaker 1: levels of domestic oil production this coming year and next

604
00:34:24,080 --> 00:34:27,359
Speaker 1: year as well, and according to Energy and Information Administration,

605
00:34:27,480 --> 00:34:31,200
Speaker 1: So you know, there's an estimate that will need seven

606
00:34:31,320 --> 00:34:36,320
Speaker 1: hundred thousand barrels to be replaced. There are multiple sources

607
00:34:36,400 --> 00:34:39,200
Speaker 1: for that. There's going to be a demand. I don't

608
00:34:39,200 --> 00:34:42,640
Speaker 1: see why suppliers who claim to want the market to work,

609
00:34:42,880 --> 00:34:45,120
Speaker 1: I don't want to participate in the market right now.

610
00:34:45,440 --> 00:34:48,720
Speaker 1: There's a huge new opportunity available. There are other countries

611
00:34:48,800 --> 00:34:52,120
Speaker 1: that are out there. There's Canada as well. Uh. Certainly

612
00:34:52,160 --> 00:34:56,080
Speaker 1: you saw little news break on Venezuela regarding release of

613
00:34:56,360 --> 00:34:58,759
Speaker 1: a couple of American citizens. Who knows that could be

614
00:34:58,800 --> 00:35:02,160
Speaker 1: potentially something as well. So I think it's I think

615
00:35:02,160 --> 00:35:05,080
Speaker 1: it's a little maybe they're looking for a subsidy to

616
00:35:05,400 --> 00:35:08,880
Speaker 1: UH to produce oil. But as Jansaki said, it's wartime.

617
00:35:09,160 --> 00:35:10,960
Speaker 1: You know, in the I Rack War, we got used

618
00:35:10,960 --> 00:35:14,680
Speaker 1: to not paying for it. Americans got used to supplementals

619
00:35:14,680 --> 00:35:17,200
Speaker 1: and on the credit card. And maybe it's good to

620
00:35:17,239 --> 00:35:18,839
Speaker 1: have a little bit of honesty that this is gonna

621
00:35:18,920 --> 00:35:22,399
Speaker 1: cost a little bit for people, including the oil sector. Rick.

622
00:35:22,440 --> 00:35:25,440
Speaker 1: It's been suggested by some others, not the cassidy proposal,

623
00:35:25,440 --> 00:35:28,760
Speaker 1: but some others on Capitol Hill that the President invoked

624
00:35:28,760 --> 00:35:32,560
Speaker 1: the Defense Production Act UH and get oil producers moving

625
00:35:32,560 --> 00:35:37,759
Speaker 1: with would that work to implement the Defense Production Act

626
00:35:37,760 --> 00:35:39,799
Speaker 1: to get oil producers moving this? This is in their

627
00:35:39,800 --> 00:35:44,319
Speaker 1: self interest. Most of these guys, to the individual, are patriots.

628
00:35:44,440 --> 00:35:46,360
Speaker 1: It needs to be put in the context of what

629
00:35:46,400 --> 00:35:51,000
Speaker 1: are they doing for the country, the world democracy. These

630
00:35:51,000 --> 00:35:53,560
Speaker 1: are folks who want to support those kind of values,

631
00:35:53,600 --> 00:35:56,520
Speaker 1: and I think values are why we're in this discussion

632
00:35:56,520 --> 00:35:58,759
Speaker 1: to begin with. So why in the world wouldn't this

633
00:35:58,840 --> 00:36:02,719
Speaker 1: present in common os with these industries, UH do something

634
00:36:02,840 --> 00:36:05,480
Speaker 1: instead of trying to force US industries to do something

635
00:36:05,520 --> 00:36:07,920
Speaker 1: through Defense Production Act. I think a little bit of

636
00:36:07,920 --> 00:36:09,880
Speaker 1: good will goes a long way at this point, to

637
00:36:09,920 --> 00:36:11,960
Speaker 1: be fair. By the way, you know, you heard from

638
00:36:11,960 --> 00:36:14,640
Speaker 1: the CEO of Pioneer and that's a good example of

639
00:36:14,640 --> 00:36:17,759
Speaker 1: of a shale driller. We heard as well though from

640
00:36:17,920 --> 00:36:20,360
Speaker 1: Creedy Goop this interview with e q T that's the

641
00:36:20,600 --> 00:36:25,080
Speaker 1: biggest producer of natural gas earlier at that same conference,

642
00:36:25,080 --> 00:36:27,759
Speaker 1: who was ready to keep drilling and do more and

643
00:36:27,760 --> 00:36:29,799
Speaker 1: provide more. So I know it's not as simple as

644
00:36:29,800 --> 00:36:31,879
Speaker 1: well as just saying that drillers don't want to drill,

645
00:36:32,719 --> 00:36:37,000
Speaker 1: but Joel should to Rick's point, the President have have

646
00:36:37,120 --> 00:36:40,319
Speaker 1: a big confab at the White House, bring big oil in,

647
00:36:40,440 --> 00:36:42,720
Speaker 1: bring the small drillers in, and try to get everybody

648
00:36:42,760 --> 00:36:45,680
Speaker 1: in a room. Are you laughing already? Yeah? I mean,

649
00:36:45,920 --> 00:36:49,400
Speaker 1: you know, oil barrel. I think they have enough profit

650
00:36:49,440 --> 00:36:52,080
Speaker 1: incentive to go for it right now. That's what it takes.

651
00:36:52,120 --> 00:36:54,640
Speaker 1: I'm sure that's that'll be what it takes. But for

652
00:36:54,680 --> 00:36:58,120
Speaker 1: goodness sake, uh, you know, it's Rick's point. This is

653
00:36:58,320 --> 00:37:02,359
Speaker 1: a national emergency. It's a crisis. We're all sacrificing. We're

654
00:37:02,400 --> 00:37:04,800
Speaker 1: paying more the pump right now. So why can't the

655
00:37:04,840 --> 00:37:06,880
Speaker 1: oil companies just get off to Diamond do it and

656
00:37:06,880 --> 00:37:12,920
Speaker 1: not always worry about being treated expressly, fairly, nicely, kindly, whatnot.

657
00:37:12,960 --> 00:37:16,080
Speaker 1: I think I think they can handle getting a move on.

658
00:37:16,360 --> 00:37:18,880
Speaker 1: We heard about this from Kevin McCarthy today, the minority

659
00:37:18,960 --> 00:37:21,399
Speaker 1: leader in the House. I wish we did something more.

660
00:37:21,440 --> 00:37:25,640
Speaker 1: You cannot just shut off Russian gas and not produced

661
00:37:26,200 --> 00:37:29,520
Speaker 1: in America. I know the President looks to try to

662
00:37:29,560 --> 00:37:32,880
Speaker 1: go to Iran or Venezuela. That's one dictator for another

663
00:37:33,080 --> 00:37:36,000
Speaker 1: just trading it. I think you feel that same way, Rick,

664
00:37:36,080 --> 00:37:39,720
Speaker 1: that doing business with the Saudi's, Venezuelans or or Iranians.

665
00:37:40,560 --> 00:37:44,600
Speaker 1: Is really not that much of an improvement here. Uh

666
00:37:44,800 --> 00:37:47,720
Speaker 1: So that leaves us with very few options. Should the President,

667
00:37:47,760 --> 00:37:51,040
Speaker 1: when he announced the Russian oil ban, also have done

668
00:37:51,080 --> 00:37:54,640
Speaker 1: more than simply refer to the existing permits and in

669
00:37:54,680 --> 00:37:58,360
Speaker 1: fact codified the need for more domestic oil in in

670
00:37:58,560 --> 00:38:02,880
Speaker 1: some other more formal way. Yeah, I think presidential leadership matters, right,

671
00:38:02,880 --> 00:38:05,040
Speaker 1: That's why he's got the bully pulpit and going to

672
00:38:05,080 --> 00:38:08,120
Speaker 1: the industry and putting the attention on them and saying,

673
00:38:08,400 --> 00:38:10,319
Speaker 1: now is the time to pump. I mean, you know,

674
00:38:10,400 --> 00:38:14,480
Speaker 1: I can't imagine he thinks at night, you know, drill, baby, drill.

675
00:38:14,560 --> 00:38:16,600
Speaker 1: But I think that's the kind of message he needs

676
00:38:16,600 --> 00:38:19,799
Speaker 1: to be sending out to that industry. And you're right, Joe,

677
00:38:20,120 --> 00:38:22,719
Speaker 1: uh you know, we're talking about a murderers row of

678
00:38:22,760 --> 00:38:25,960
Speaker 1: people who are going to quote bail out democracy. Um,

679
00:38:26,000 --> 00:38:28,279
Speaker 1: you know, while they're pressing their own people. I mean,

680
00:38:28,320 --> 00:38:30,759
Speaker 1: like at some point we have to be consistent. We're

681
00:38:30,800 --> 00:38:33,439
Speaker 1: trying to help free people of Ukraine and we can't

682
00:38:33,440 --> 00:38:35,719
Speaker 1: turn to the desk spots of the world to try

683
00:38:35,800 --> 00:38:38,879
Speaker 1: and financially bail us out. So I think I think

684
00:38:39,080 --> 00:38:42,600
Speaker 1: values matter, and we cannot apply our foreign policy, especially

685
00:38:42,640 --> 00:38:45,239
Speaker 1: related to hydrocarbons, you know, without a look on the

686
00:38:45,320 --> 00:38:48,959
Speaker 1: value side. Well, look, there's a lot there, uh, Joel.

687
00:38:49,000 --> 00:38:53,200
Speaker 1: Should we not only be discussing then creating enough domestic

688
00:38:53,320 --> 00:38:56,800
Speaker 1: oil for to replace the Russian gas here? Should we

689
00:38:56,840 --> 00:38:59,880
Speaker 1: be talking about creating enough oil to sell to Europe

690
00:38:59,880 --> 00:39:02,399
Speaker 1: as well, so Russia is out of the business when

691
00:39:02,440 --> 00:39:04,960
Speaker 1: it comes to the Western world. Well, I'm with with

692
00:39:05,080 --> 00:39:07,040
Speaker 1: Rick here. If you really want to put the despots

693
00:39:07,040 --> 00:39:10,080
Speaker 1: out of power, we need to start moving quickly off

694
00:39:10,120 --> 00:39:13,120
Speaker 1: of oil because that's where the oil comes from despotic

695
00:39:13,160 --> 00:39:15,839
Speaker 1: regimes except for say, for a few countries, and get

696
00:39:15,920 --> 00:39:19,920
Speaker 1: more into the electricity grid providing for our fuel for

697
00:39:19,960 --> 00:39:22,960
Speaker 1: our cars. We need to move more to renewables. You

698
00:39:23,040 --> 00:39:26,440
Speaker 1: need to move more on efficiency, absolutely. If you want

699
00:39:26,480 --> 00:39:28,880
Speaker 1: to get out of this trap of looking to despots

700
00:39:28,920 --> 00:39:31,840
Speaker 1: to fuel our economy, we need to move to cleaner energy,

701
00:39:32,080 --> 00:39:34,880
Speaker 1: not get more sucked into the oil economy. That is

702
00:39:34,920 --> 00:39:37,560
Speaker 1: a dead end when it comes to promoting democracy. Where's

703
00:39:37,600 --> 00:39:39,479
Speaker 1: the line on that, though? Rick? I mean, there's gonna

704
00:39:39,520 --> 00:39:42,200
Speaker 1: be pain at some point with when this thing rolls over, right,

705
00:39:42,200 --> 00:39:45,879
Speaker 1: there's gotta be some last gasp for petroleum, and people

706
00:39:45,880 --> 00:39:48,080
Speaker 1: who are watching this market and and looking at the

707
00:39:48,120 --> 00:39:50,359
Speaker 1: investments that have been made in renewable energy say, it's

708
00:39:50,400 --> 00:39:53,440
Speaker 1: not here yet. Yeah, that's right. And we're talking about

709
00:39:53,680 --> 00:39:55,600
Speaker 1: what are we going to do in the next twelve months,

710
00:39:55,600 --> 00:39:58,399
Speaker 1: not in the next twelve years. And so sure we're

711
00:39:58,400 --> 00:40:00,440
Speaker 1: on a trajectory to have a cleaner and vironment. And

712
00:40:00,480 --> 00:40:02,439
Speaker 1: you know, believe me, I'm um afore that I think

713
00:40:02,680 --> 00:40:04,600
Speaker 1: you know, this solves a lot of long term issues,

714
00:40:04,680 --> 00:40:07,480
Speaker 1: but that is a longer term play between now and

715
00:40:07,719 --> 00:40:09,840
Speaker 1: when we solve the problem. What is the riddle with

716
00:40:09,920 --> 00:40:12,839
Speaker 1: Vladimir Putin and keeping him pinned down? And that means

717
00:40:12,840 --> 00:40:15,719
Speaker 1: we have to supply the West, uh, not only US,

718
00:40:15,719 --> 00:40:18,759
Speaker 1: but the Western Europeans with enough hydrocarbons to be able

719
00:40:18,760 --> 00:40:21,319
Speaker 1: to stick to this to their guns. The only thing

720
00:40:21,360 --> 00:40:24,400
Speaker 1: that could end our resolve is economic collapse within our

721
00:40:24,440 --> 00:40:27,759
Speaker 1: own coalition. And so it's really vitally important that we

722
00:40:27,840 --> 00:40:30,200
Speaker 1: solve this problem so that we can stay tough on

723
00:40:30,320 --> 00:40:32,800
Speaker 1: Vladimir Putin. There was a time, Joel, when people figured

724
00:40:32,880 --> 00:40:35,840
Speaker 1: hundred dollar barrel hundred fifty dollar barrel crewed would force

725
00:40:35,960 --> 00:40:40,560
Speaker 1: that transition. Are we beyond that now? Well, I sure

726
00:40:40,600 --> 00:40:43,359
Speaker 1: hope not, because it certainly should. You can't. It's not

727
00:40:43,400 --> 00:40:47,040
Speaker 1: sustainable to have five six seven dollar a gallon gas,

728
00:40:47,120 --> 00:40:51,000
Speaker 1: and we've seen a spike from price galagin quite frankly. Uh,

729
00:40:51,040 --> 00:40:55,160
Speaker 1: there's a significant capital constraint from these companies. They're not

730
00:40:55,280 --> 00:40:58,239
Speaker 1: investing in the way that they should despite hundred dollar

731
00:40:58,320 --> 00:41:01,319
Speaker 1: plus barrel for oil. So, uh, the onus is really

732
00:41:01,320 --> 00:41:03,319
Speaker 1: on these companies to do what they're supposed to do

733
00:41:03,600 --> 00:41:05,520
Speaker 1: and played by the market rules and not always look

734
00:41:05,560 --> 00:41:07,359
Speaker 1: to the government to bail them out and push them

735
00:41:07,440 --> 00:41:11,160
Speaker 1: whenever there's a national crisis. Yeah, mid terms are looming,

736
00:41:11,239 --> 00:41:14,279
Speaker 1: Rick Kevin McCarthy, I'm sure would love to see more

737
00:41:14,320 --> 00:41:17,640
Speaker 1: domestic oil bring gas prices down, But that's that that

738
00:41:17,680 --> 00:41:21,200
Speaker 1: could be the nail in the coffin for the Democratic Majority.

739
00:41:21,200 --> 00:41:24,040
Speaker 1: You know. Look, I mean the Democratic Majority has got

740
00:41:24,040 --> 00:41:25,800
Speaker 1: to figure out what their message is going into the

741
00:41:25,840 --> 00:41:28,280
Speaker 1: mid terms because they will not be a majority unless

742
00:41:28,320 --> 00:41:30,560
Speaker 1: they do. Now, they're all taken off tomorrow to go

743
00:41:30,640 --> 00:41:32,759
Speaker 1: figure that out, and I wish them lust because if

744
00:41:32,760 --> 00:41:36,120
Speaker 1: they don't crack the code on gas prices and inflation,

745
00:41:36,640 --> 00:41:38,160
Speaker 1: none of this is really going to matter to them

746
00:41:38,200 --> 00:41:41,759
Speaker 1: as leaders. So what's the message as you head into

747
00:41:41,800 --> 00:41:44,520
Speaker 1: the mid terms, Joel Ruben If you're a Democrat preparing

748
00:41:44,560 --> 00:41:48,359
Speaker 1: a campaign or messaging around this election season, you want

749
00:41:48,360 --> 00:41:51,399
Speaker 1: to be pro renewable energy. You want to be pro

750
00:41:51,480 --> 00:41:54,399
Speaker 1: climate change. Even though build back Better didn't happen. There

751
00:41:54,400 --> 00:41:56,520
Speaker 1: are good ideas on the table, but you also don't

752
00:41:56,520 --> 00:41:58,960
Speaker 1: want people to be paying six dollars a gallon? How

753
00:41:59,000 --> 00:42:02,400
Speaker 1: do you have it all? Absolutely? First and foremost, to

754
00:42:02,440 --> 00:42:04,800
Speaker 1: point out the economy is booming, the job growth is

755
00:42:05,400 --> 00:42:08,239
Speaker 1: at the highest it's been in decades, that the undeployment

756
00:42:08,280 --> 00:42:10,960
Speaker 1: rate is extremely low, wages are going up, and that

757
00:42:11,320 --> 00:42:15,319
Speaker 1: this issue of gas prices is price gouging from the companies.

758
00:42:15,320 --> 00:42:18,600
Speaker 1: That we have a national security crisis that we are handling,

759
00:42:19,000 --> 00:42:21,480
Speaker 1: and that there needs to be transition to renewables. And

760
00:42:21,520 --> 00:42:23,520
Speaker 1: that's what you vote for when you vote for Democrats,

761
00:42:23,680 --> 00:42:26,520
Speaker 1: as opposed to being stuck in the oil economy and

762
00:42:26,719 --> 00:42:29,680
Speaker 1: being at the worthy of despots, which is what the

763
00:42:29,800 --> 00:42:33,839
Speaker 1: Republicans are offering every cycle. How do you respond to that? Rick,

764
00:42:34,719 --> 00:42:37,040
Speaker 1: That's why Joel gets the big bucks. He's got those

765
00:42:37,080 --> 00:42:41,479
Speaker 1: talking points down perfectly. Look, it's let's let's decide if

766
00:42:41,520 --> 00:42:43,960
Speaker 1: if inflation isn't the number one issue in America today,

767
00:42:44,000 --> 00:42:46,640
Speaker 1: then Joel's probably right. You can have that conversation, but

768
00:42:46,719 --> 00:42:49,279
Speaker 1: until you lick that and what is the biggest driver

769
00:42:49,360 --> 00:42:52,439
Speaker 1: with an inflation energy costs, So you know, unless there's

770
00:42:52,440 --> 00:42:54,880
Speaker 1: a better explanation, and like, hey, you know, take your

771
00:42:54,920 --> 00:42:57,520
Speaker 1: medicine now, because someday you're gonna have an electric car

772
00:42:57,560 --> 00:42:59,400
Speaker 1: and you don't have to worry about all this gas gouging.

773
00:43:00,800 --> 00:43:03,920
Speaker 1: This administration owns the economy, as Joel said, and one

774
00:43:03,920 --> 00:43:05,920
Speaker 1: of the parts of that economy right now that's got

775
00:43:06,000 --> 00:43:08,959
Speaker 1: people really christ in a crisis mode is inflat agree

776
00:43:09,000 --> 00:43:11,200
Speaker 1: with that. I loved this conversation. You will not hear

777
00:43:11,200 --> 00:43:14,000
Speaker 1: this conversation anywhere else. Rick Davis, Joel Rubin, I thank

778
00:43:14,040 --> 00:43:16,640
Speaker 1: you for being our panel today as we turned to

779
00:43:16,680 --> 00:43:20,000
Speaker 1: Women's History Month in our Daily Update now from Bloomberg's

780
00:43:20,040 --> 00:43:22,760
Speaker 1: We Need a Young on This day in Women's History.

781
00:43:22,800 --> 00:43:26,760
Speaker 1: In nineteen fifty nine, Ruth Handler, a co founder of Mattel,

782
00:43:27,120 --> 00:43:30,520
Speaker 1: introduces Barbie to the world. She brought it to crowds

783
00:43:30,520 --> 00:43:33,880
Speaker 1: at the American International Toy Fair in New York. The

784
00:43:33,920 --> 00:43:36,719
Speaker 1: inspiration for the doll began when Handler was traveling in

785
00:43:36,800 --> 00:43:40,360
Speaker 1: Europe and her fifteen year old daughter Barbara, spotted a

786
00:43:40,480 --> 00:43:43,720
Speaker 1: German lily doll. But as the years went on, Barbie

787
00:43:43,760 --> 00:43:47,680
Speaker 1: would be mocked as outdated and sexist and criticized for

788
00:43:47,840 --> 00:43:51,080
Speaker 1: promoting a largely white, gendered image of beauty with an

789
00:43:51,120 --> 00:43:55,279
Speaker 1: unrealistic body image. But in nineteen eighty Mattel started to

790
00:43:55,320 --> 00:43:58,880
Speaker 1: become more inclusive when it introduced the first black Barbie,

791
00:43:59,239 --> 00:44:02,560
Speaker 1: and today Barbie's dolls come in more than twenty skin tones,

792
00:44:02,600 --> 00:44:05,719
Speaker 1: close to a hundred hair colors, a dozen eye colors,

793
00:44:05,760 --> 00:44:10,160
Speaker 1: and five body types. Those changes served Barbie well because

794
00:44:10,160 --> 00:44:14,920
Speaker 1: in Barbie generated its best sales growth in two decades.

795
00:44:15,440 --> 00:44:18,879
Speaker 1: Ranita Young Bloomberg Radio. Ranita, thanks, will do it again

796
00:44:18,920 --> 00:44:21,760
Speaker 1: tomorrow on the fastest hour in politics, thanks to Senator

797
00:44:21,760 --> 00:44:25,560
Speaker 1: Bill Cassidy, Congressman Raj Krista Morphy and our panel of course,

798
00:44:25,760 --> 00:44:30,080
Speaker 1: Rick and Joel smart Talk will check traffic and markets

799
00:44:30,120 --> 00:44:32,360
Speaker 1: on the way. This is Bloomberg