Texas Insider, 8/4

Texas Insider
Saturday, August 4th
Texas Insider for August 4. Host: Jim Cardle. Guest: Karr Ingham with Texas Alliance
00:50:12

Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

Good afternoon ladies and gentlemen and happy Saturday. In them beginning of August can you believe it's August already and a happy Saturday and a partly cloudy lovely lovely day in the nation's eleventh largest city that would be lovely downtown Austin, Texas is always like to say Ian. Welcome to this week's edition of the Texas insider show on Jim Carter were here every Saturday afternoon from 1230 do. 130 on talk thirteen seven be the right choice were high atop the worldwide headquarters over here in west Austin Le canal. Over the skyline and of course there's Crane's. Work in a way there's. You all run and Iran and going to sports camps are going to him run some errands to get some yard work done or may be getting ready for vacation and you're going to be leaving non in the next couple days but. We're here to give you a little thumbnail sketch and as kind of a 30000 foot view on what's going on in Texas in national politics so be sure and check this out at Texas insider. Dot org where we post about ten articles ten to twelve to fifteen articles every day give you him ability to do when you want me had you want to go kind of see what's. Going on in the nation's politics in Texas politics and not have to grab them. 24/7. Left wing pop and as I com sock puppet media. Russia Russia Russia whatever the flavor of the day years and also. You too can be is it insiders we always like to say you're either an insider or you're not checked us out on FaceBook and Twitter as well just Texas insider where we got about. 40000 followers bear. And I tell you here's. What we're gonna do today I I've been trying to think Kim pay attention. Particularly this week but think over the last. 24 hours or so what. It was going to be the subject to talk about today politically and their really I mean alert the media there really hasn't been too much. At least volume wise in intensity wise. Much going on politically I mean. The congress critters have gone on what they call August recess dates back hundreds of years from win. There was an air conditioning in the nation's capital and August was the sweltering month of the year up and Washington DC in the and then congress people decided that that would be a time to take a break and people didn't come to come and go back to their districts on a weekend basis they went. More rarely than that because they didn't have the capabilities to hop on an airplane like we did today but. The Senate's gonna keep working Mitch McConnell canceled about three weeks ago we talked to Matt and Mitch McConnell and senate majority leader. For the Republicans canceled August recess. And that's a big big deal because. Everybody loves there August recess and particularly. They not only love it but they are scared to death. This year with the mid terms elections were now under a hundred days away from. November 6 mid term election and if you're a candidate. In your. May be concerned about the fact like we talked about it and some of the senate races your candidate. I senate Democrat nor decode our West Virginia or Missouri or Indiana or Wisconsin. Or fla. Donald Trump was in Pennsylvania the last two days. If you're senate Democrat and all those states that I just ticked off hand senate Democrats up for reelection. And you know that Donald Trump curing your state by 39%. Like he did in North Dakota senior Democrat. Running in that state you were broken down. The barrel of the gun and you were senior Latin life flash before your eyes because that's almost mathematically impossible to overcome. Just on a numerical basis and you wanna be back in your district back in your home state and to have the senate majority leader cancel August recess. You've just had one a year key campaign. Assets and seasons taken away from me and why is Mitch McConnell doing that he's doing that because. Senate Democrats in under Chuckie Schumer from New York continue to stall. Stalled stalled Donald Trump's appointments particularly in the area. Of judicial nominees we've got the Supreme Court nominee coming up and that's going to be voted on judge Cavanaugh before. This election comes we've been promised by senator McConnell. But their means to be I read something the other day that. Only like half of the tip of coal. Presidential nominees if you look back under Barack Obama and George W. Bush. Even all the way back to Bill Clinton there's usually by this time about sixty to 70%. Of the nominees of president nominates for senior positions in the Department of Energy your senior positions over at the State Department or education or commerce you name it any of the agency's. And Donald Trump's got path that number it's because the Democrats have continued. To quote unquote resist. And throw up all the distractions that they can and as a result Mitch McConnell said fine he won't play that game I'm gonna cancel August recess. We got too many things to be. Doing in too many positions to be confirmed. So that we can allow this administration to get things done I'm canceled an August recess that being said on the senate side. The house guys are on recess and LB. Probably on our local news Daniels be seen Amanda the chamber of monthly banquets and your local rotary clubs and maybe young on talk thirteen seventy even for all we know more often but the congressional. Recess is in full swing and and what are most people do and I mean you watch the nightly news I've got. MSNBC. On right now and here in the in the studio in their re playing a cut a clip of president trump he was in. Pennsylvania where again there's a big tight senate race going on and Donald Trump carried the state of Pennsylvania when nobody. Gave him a snowballs chance in HE double toothpicks two years ago that was going to be Hillary Clinton's. Stop gap herb. Her wall from. President. Now president trumpet winning the election then he went to Florida where bit senator Bill Nelson is a Democrat who's got former governor. Rick Scott running against him Donald Trump is. In the middle of a campaign season he's getting more done economically which were gonna get into you here after the commercial break he's. Executing. His. 2018. Campaign season and that is to be going to places as we've talked about he's been to Michigan. He's been to Wisconsin he's been to Missouri he's been to North Dakota he's going to these states. Word the economy is recovering and word there are vulnerable Democrats particularly in the senate and whether or not we see the quote unquote blue wave it's common is yet to be seen but one thing that I wanna focus on. And I got to mention we're gonna. Here after the first break we're gonna have my old friend. With the Texas alliance of energy producers their chief economist Karr Ingram is gonna join us and we're gonna talk about. What the mindset is. Of the American people right now because this last. Week and today in front of the on the front page of the Wall Street Journal the top headline is job engine hums along. Workers enjoyed a strong start to summer with low unemployment and steady wage. Gains offering fresh incentives to jump into the job market employers. Added 457000. Jobs across the nation. In. Addition to the previous months of Maine in June numbers being expanded to indicate a faster rate of growth. Then has been seen in nearly a decade. That's the type of thing all day and you've heard me say it before what two presidents actually do more than anything else I think it's under I mean we all think demand him. Declaring war or may be coming up with a major initiative like Obama here or a major initiative Bill Clinton go way back when he reformed the welfare system of sorts with a lot of help from Republicans in congress. Donald Trump's past that tax cut. We see him going over to North Korean and dealing with Vladimir Putin and been our of our nation's. Ambassador at large bid what a lot of folks don't realize it we'll see him out campaigning like a mentioning kissing babies and those types of things but what a lot of people don't realize and there's always been something that I think is as important as anything and that frankly is what happened during the election. The president of the United States sets a mindset. For us. Voters us consumers us constituents. And for all of America and how does he do that. I always go back to the two of them being major Ronald Reagan never took a question about if the economy was gonna turn Sam how's he said no we're doing great work. Any focused on the positive always be part that's part of the solution not the the problem and Herbert daddy Bush's I've Conley com Herbert walker bush got in there and he started taking questions. You know economic figures go up and down month to month to month. While there in a general longer term trend that. Senior President Bush started taking some of these questions and then that the next thing you know. The discussion becomes their reality and Donald Trump has got America being feared by our enemies. Around the globe he's got as being respected by Air France. He's got us as consumers I saw something. This week that said consumer confidence is up consumer spending. Makes up about 70% of our nation's economy it's in solid shape the last quarter. Going up 2.2 percent the most interesting thing that I saw the other day though. Was article in the Wall Street Journal on tide didn't entitled modest wage earners gain confidence. And again this is what the president stunt economic confidence among lower income Americans. Has taken a recent leaked the latest evidence that benefits. Of economic expansion are read reaching a broader group of workers. That is key folks because if you look where Donald Trump won the presidency in Ohio Pennsylvania Indiana. Wisconsin and Michigan almost one Minnesota state he wasn't supposed to win he is setting a new tone in the Democrats don't have any message to camera. We're gonna have to take our first commercial break and be sure. And come back after. This first commercial break when we're going to be visiting with car Ingram from the Texas alliance of energy producers to break in some of these numbers and talk to you about why. We should be excited about the Texas economy and what's going on across the nation. On the Texas insider show I'm Jim Correll and we will be right back. Good job there Brian we got Brian and KC produces the show today and welcome back to the Texas insider show I'm Jim Carville appreciate you. Join and us is we hope you do every Saturday afternoon from 1230 to 130 work. Where we are here in the top thirteen seven you right choice worldwide headquarters over in west Austin giving you a little update on what's happened last week in politics and what may be as common. Down the pike in as I was mentioning before the break there haven't been too much a whole heck of a lot going on this last week politically Khamenei. Turn on the cable news or watcher nightly news. There's a little of them it's at the pure dribble at this point Russia Russia Russia I guess all. Men afford if any of you know who Paul man afford is a former campaign manager for. Donald Trump who's got his trial going up outside of Virginia out of outside DC and Virginia and I tell you the biggest hit because I think a lot of folks are. And attention to were either the wildfires that in California where there's great destruction going on or frankly here locally. On Texas insider this week the biggest. News and an area of interest is actually bill in this colossal joke of an idea to change the city of Boston's net income proposed by. City Hall will see where that goes back. Most of the news I think this weekend as we go about our summer with the kids sports leagues and vacations. And you know keep in the yard from burn an up and things like that has has been kind of a nice respite or we can just take a breather from politics but yet this last week we had. A slew of economic numbers come out and it's going to be setting the mindset I think my humble little opinion between now and November 6 which is win them. Mid term elections are in for those of you paid too much tension like I do work underneath a hundred days before the election so. Get your big boy in big girl panties on because things will start ratcheting up but. I'm gonna bring in car in Ingram with that income with the Texas alliance of energy producers before I do that let's just recap as I was trying to say last Friday folks. We had. The news that and we talked about it last weekend that the economy. In the second quarter of this year that would be April may and June. The economies currently growing at the fastest rate has an about. Some people say for years it's really about ten to fifteen. The number of jobless claims are at the lowest level since 1969. On Tuesday this week we learned that worker pay and benefits. That's your worker paycheck and your benefits are rising at the fastest rate they have been ten years. Then on Wednesday we find at the consumer spending his continued to increase the Federal Reserve releases those numbers. And consumer spending makes up about 70% of our economy and it indicates. There were all feeling better about jobs and so forth Thursday morning. Came the unemployment. Claims and unemployment claims continue to be near the lowest level on about 45 years. That's the unemployment claims people who were claiming unemployment and then on Friday came there. Employment numbers that the nation ended about a 157000. Jobs in car Ingram. With the Texas alliance of energy producers yearning economist which you and I joke about his boat being economists is an accountant with a sense of humor. How in the heck are you doing these days. A bomb villages far and about Cuba different. Will not too bad with these numbers and I tell you we in Texas take. Or not I shouldn't say that we don't necessarily take it for granted but we just don't realize how lucky we are because Texas really is leading the nation that was another figure that. Came out in the last week that texas' economy. Is about 9% I think of the national gross domestic product now but give us your read I'm. Before we get into the oil patch include the particulars about the Texas economy may be Telus the 30000. Foot view. From your perspective and how how're we doing that and is it gonna last. Well as you suggest. And no lot of and industry economist. I do have a great pleasure of serving as the chief economist for. The tight supplies of energy producer just not stream trade association in Texas. Oklahoma natural gas producer drilling companies service companies in the and other affiliated. Firms and individuals but I also just an economist. So watch national abortion. Carefully. And watch votes statewide numbers in taxes and I'm a regional electoral around Texas. And do work at that level for banks in chambers and economic development groups to. Media corporations and so on and so forth and so. Generally and knows deepen these numbers were talking about day in and day out. And that's why do foreign Lou legislative committees and are. Considered an economic expert of sorts. To the extent that we've got about a handful or does and you'd type. Folks that are economic experts and can advise legislators on had to be taken policy news. That is true and I also spurred on by the Wednesday. The years comptroller. Proper orders. Economic roundtable also this was a group that he convened. In advance of the last legislative session. He's the ruling the first one that it's a fault of this almost a great idea. So we've put together. A group to be called an economic roundtable is just a group of economists somewhere in Texas on from elsewhere. To come in and do the comptroller office perspective on the general condition of the Texas economy relative to the national economy relative to you. Industries within taxes in general trends and the video objective of that exercises you can well imagine is to help the comptroller office in crafting. They're biennial revenue estimates for coming legislative session well. And that let me interrupt you their car because for those who don't know. The comptroller. A lot of folks will and think of the comptroller's being the person that collects our sales taxes in this kind of a tax accounting type but that is the important thing that you mentioned is that that. Is the advisor leads to being the advisor to the building the state budget so it's a key key economic office in our state to Texas. No doubt about it and and be on just being an advisory body actually provide the legislature with a number they're gonna have to work with us in terms of revenue. The course of a budget cycle. And soul back as you know budgets are told doesn't actually go into effect until 45 months of the legislature has. Has. The and it's folks there's the look to three years out and trying to get it right so this next round table that is Serbs for October of this year. How pleased to have been invited back to that so ought to say these things altered to last on operatives from the they would have been it's a great group Phnom. Automobile. A part of that but. Just in terms of what's going on while listening to your American they're Oceanside was by the way Larionov they can always these that you have the best ball for music and Austin. I sold out. And we work hard at that. But and what you suggested in terms of employment rose. The decline in the number of claims for unemployment assistance. The decline in the unemployment rate itself. And then wage growth. Well. Of these things are often presented as an independent statistics from one another I think everybody knows that they are certainly inter connected. But just think about this way. The unemployment rate as we sit here today three point 9% for the month of July. Three point 8% a couple of months ago three point 9% we've been right at 3839. Or four point zero for the last four months since the last time we were at these levels in the year 2000 it's been that all. Someone. Yeah was this low. And so although we have a nasty perception nationally and in taxes in the 2000. 820092010. Time frame and we really hope we are only just now kind of crawling and we've been which actually did that recession actually technically in mid 2009 but. We just sort of had this hanging over since then and this was kind of from economic Malays work brokerage workflow and employment growth even though we had it wasn't really. All that exciting the unemployment rate wasn't coming down. It's really Barack Obama called the new normal quarter and clutch. These jobs aren't coming back. He's not correct about that. That men are heard and but I heard a number of economists were referencing that same trend. And so thankfully we're sort of turning that notion on its head right now. What happens is. Listen these things are pretty simple at their basic level. Think it wages as nothing more than the price of labor. And think of labor in terms of supply and demand when the labor supply begins to tighten up relative to demand which is Tuesday. When the slack in the when the slack in the labor market has taken up in the unemployment rate becomes lol. These jobs of these pardon me not jobs that you fill labor force the people available to fill jobs. Is in short supplies. Right relative to. Growing demand out there which is going to push wages up it makes perfect economic sense to me. That is the unemployment rate comes down now finally we are beginning to seem wage growth which has been you know a little bit missing from this economy for quite some period of time now. And I just find myself hoping that this is beginning to happen and time to effect the mid terms. But this is why that is occurring right now. And we've talked about it before here on the show. We've got more jobs. Available in this economy then there are people to fill them. That's just unbelievable so what do you see in we got about a minute and a half before the first commercial break. What do you see as having been the biggest two or three or maybe just one factor that's good Sweden to this growth in the last eighteen months. Argued YouTube and I'll start with one in the gulf and they're number one tax cuts no doubt about it. Listen the the the the partisan opposition to tax cuts. That's what are gonna get from the other star that's what you're gonna get from the dams. But that opposition to was a co parent to begin with it's utterly in order to at this point. But remove any partisan aspect of this and forget who you war politically. When you do when you. Oh when you. Turn more of household and business and compact our households and businesses. There will be economic benefit period that is on avoidable. And our city tax reform and putts and tax rates that the business. And are honestly business level in particular but I also level as well have to be at the top of the list in terms of are generating additional moment moment for economic growth and job growth in the closely behind there and doesn't get enough discussion has generally speaking regulatory reform. OK Kyra I got to cut you off right there on regulatory form 'cause we got to take a break for the news at the top of the hour but we're visiting with car Ingram. Economist for the Texas alliance of energy producers on the Texas insider show and we will be right back after this break in the news I'm Jim Arnold thank you for joining. As soon. Another good job there Brian. Well Steve Miller Texan in Austin Knight himself I believe it's taken the money can't modify them and welcome back to the Texas insider show I'm Jim Carter where we are talking about the nation's economy in the state the State's economy and know what it impacts are politically and I'm telling you taken the money and run is what is happening right now I appreciate you join in this folks for this week's edition of the Texas insider show. I'm Jim Carter were visiting with the Texas alliance of energy producers the economist Karr Ingram and analyzing some of these things during a bit below in the political hub bub. Thank goodness alert the media that it's kind of slowed down here the last weaker for so in the doldrums of summer bit. That doesn't mean that the economic numbers have been stopped this week because they came out and car I mentioned before. The break that consumer confidence is up especially the interesting thing consumer confidence among the good. Income bracket of 75000. Dollars a year in and lesser record numbers that you mentioned. The tax cuts being the main driver probably and then cuts in regulations. I think president trump this week is. Announcing that he's gonna cut back that. They're average fuel economy standards that. Automobile manufacturers have to. Maintain and build smaller and more gas efficient cars supposedly but. Keep going on on your. Overall theme here because in and then maybe trans. Grass into Texas because the national economy. I think is it fair to say the national economy is going gangbusters let me ask you that is that an accurate assessment. Our business and accurate assessment I'm not sure what sort of numbers you can look Europe remarks suggest otherwise. So you know you've got back and ties and naysayers and those that are. Some political. Agenda for wanting to find something wrong. Again you know these arguments about listened to and from an economic perspective roller to holy water at all. Is that this is not a the economics can be very complicated but it can also beavers simple in many cases that you should be. You she's actually occurring to our role spending ripped declines in the unemployment rate increases in the stock market on and on and on. Of this economy has momentum behind it and back continues at least through right now we'll see what future holes the stage has been four. Continued to move on in Iraq correction. Let me ask you because you mentioned. The regulatory reform that Donald Trump I mean the EPA's rolling back regulations. We've got oil and gas exploration and some of those. Federal lands now opening up an on off the coastal waters texas' just been announced again for the fourteenth year in a row is being. The top state. To do business in and a lot of people credit are low. Our pro business environment but how about the idea I saw something the other day that California who lost like. 9000 businesses last they had their headquarters we all think it Toyota moving up the Plano. But that's them as an example of people we know moving to Texas but businesses also look Iran and their move into Texas talk about the Texas economy a little bit tacky. You almost late to California is set out. To implement a strategy to run everybody devastated as any productivity about them whatsoever to do little towards me. And therefore somewhat succeeding at doing that. Policies that are implemented of that state from state level on down to inquiry committee of this horrible Muster orders sentences to one particular. When you set out to punish productivity. Guess what productivity is going to leave you. That leaves the less than promote student and taking from the productive to try to fill the gap in terms of revenue and as far and other just didn't happen. And so these are the reasons for all sorts of budget and economic woes. That direction in the state of Texas. Does have. They generally pro business. Business friendly. Yeah but I would even your goal farther than that I mean. There are less restrictions on business and household. Economic liberty in the state taxes and are in many other places and many people like to credit the state. Of the strong state economy relative to the national economy to our press natural resources to crude oil reserves and so on and so forth. The no you would be wrong to just leave that city rocked their Venezuela has signed saying look to the shake their hand so just because you got that stuff doesn't mean that you can't export it. And that will turn your economy and took rolling out thriving economy and keep it that way. I've often been asked what mark what mark recommendations for federal energy policy. Might be answered yeah it's pretty complicated. But LC clarkin bullet down below. Or yeah it get all the way yeah it out the way that's that's our recommendation it's the US energy policy. And in many respects that what we do it taxes would get fell away and let we let the people who know what they're doing to it and do a bit sick grows our economy grows our jobs. And and mixes an extraordinary. Almost unfathomable. Talked with probable contribution to the consumer economy about what we were able to provide. To them in terms of energy resources and so again it's pretty complicated but I think Arkansas on the to sort. Yet you government get out of the way okay let's break it down and get into some of them. The Texas Pacific oil patch a lot of people think only west Texas. Where. If I remember correctly you you can set the record straight on this were about to. Become a larger producer in the country about Iran but people don't realize even over in east Texas there's major plays deep being developed and found. What is the state of the oil and gas industry in Texas right now tell us some of the dynamic numbers that I can't. We we do think about. Production is being is Texas production as being largely Permian Basin based which is west Texas which arrived in the panhandle where I am east Texas stopped x.s everywhere voters. That are sort of considerable oil and gas activity just think about this mean department has been around for a long time. It's a really flexes its muscle now but it's been around for a long time but we've got a new relatively new production region and state taxes called. It's actually eagle Ford it's two words but let me just says eagle for you know like this one word was anyway so Beagle for us that you offered are actually talking about the eagle Ford. But the eagle Ford as a stripper production and soft practices. That did not produce a barrel of oil and just 2008. And they have regularly come along like gangbusters I mean this that press there's. Along with Permian production growth is what parents packed as we sit here today. Quadrupled. Daily crude oil production in taxes compared to where we were about 20082009. Quadra unbelievable. Aura. And what happened in 2008. That that led to the Eagles for being accessible. Well essentially what happened was what we you know in the early part of the decades of the two thousands. About taxes will the laboratory in a place called Barnett shale which is a natural gas production in the north spectrum is covered surrounding. The B four. Years ago Tuesday so parts of that to the north and east and west and south. That's the bar managerial there. So but the Barnett shale with the laboratory in the natural gas production. Arena for the broad implementation. Of these. This combination of production techniques called horizontal drilling and hydraulic fracturing. Well that and there's you know no. Tracking which is the short. Which is short for fracturing. You know to some people in the country doubts the new four in America fracking is just almost the worst thing you can do. All the players in the environmental CL. Are you gotta. The war what this did for us will allow us to explode natural gas production. In the United States again with the Barnett shale in the great state tax is leading the way. What happened subsequent to that was. That these same techniques were importing crude oil production. And so that's really what cracked open the eagle furtive it is what is driving. Unbelievable production growth in the Permian right. And frankly that's what's driving it so often refer to a shelter corruption that's quality is retarded produce from cherry. You drill horizontally to fractured that rock and then you're sort of show something in there to hold it open in the stuff just flows out of the purple structuring of our student. It's actually been going on for decades and decades to. The only just now that it's a crime and so people's market doom. But that's what terms. Expanded our energy recently in the United States and just ask yourself this question. This period of time leading up to one return production growth around in the started bill Norris. These years were declining prices are or go out work importing would be more than we are producing yeah. Looks easy. You got it army wasn't the wasn't the thought process there and generally across the board that we need to turn this around. That we want. Greater levels of energy independence we want to be less reliant on open gates announced around all the time sort of walk now that we have it and this is what we have by the way. Much greater level of the US and North American energy. Independents and it would keep it up will continue to lose correction. Of booted again this is not is that not what we always professed to want what's what we have right now. OK Carl I'm gonna stop you there because we got to go to our final commercial break we're visiting with car income chief economist for the Texas alliance of energy producers. And car when we come back I'm gonna ask you about the statement that Donald Trump made the governor Rick Perry now Department of Energy secretary. That America's going to be not be energy independent but energy dominant will be right back on the Texas insider show folks. Hey Austin wake up and fly right on talk. Thirteen seventy. Brian. A little more and for the weekend and welcome back to the Texas insider show folks I'm Jim Carville and we are here every Saturday afternoon speak into the weekend from 1230 to 130 we hope you'll. Check us out during the week at Texas insider dot org where we post about 1510 articles every day to keep you on the inside at Texas in national politics and check us out on FaceBook and Twitter at Texas insider and talk about. Working for the week can that we've been talking about the employment in the great economic numbers across the nation that have come out this week 157000. Jobs in the month of July were created across the nation the unemployment rate is slipped to three point 9% there's record numbers. For Hispanic employment record numbers fur African American employment record numbers for the number of females in the job market these days wages are starting to go up. It were visiting with car kingdom's chief economist for the Texas alliance of energy producers car really appreciate you join announced today. All the pleasures mine early enjoyment. And we've got a bit short fifteen minutes segment car I mentioned it. Ahead of the break that I want to ask you about the bin nation being in energy. And art US. Production is going to be energy development dominant not energy dependent like you were talking about before the break on OPEC. But first I want him. Put in a plug if folks you wanna learn more about scarring them in the Texas lines of energy producers go to Texas alliance dot org. On their website or FaceBook is Texas alliance EP for energy producers. But car two point question you've been producing some thing. Called the Texas Petro index and I want you to talk about that first and then second in today's Austin American statesman. There's article about steel tariffs possibly hurting them. The Permian Basin but in this article it says despite the nation's concern about tariffs no major Permian Basin pipeline projects have been canceled. Candor Morgan Apache corporate and Blackstone energy recently announced a two billion dollar Permian high and high. Hi they're gonna highway pipeline project to go over to the Gulf of Mexico ExxonMobil and plains all American. Are looking at a one billion barrel A day need new pipeline. And Corpus Christi is expanding its port that's going to be. At that people don't realize corpus crispy it corpus Christie he's got the fourth largest port in America. Talk about the Texas Petro index in some of this explosive growth that's going on. The other taxes sectoral indexes Saturday. Is already tracking device for the Texas all the gas exploration and production economy the thing that we do in taxes. In Los. It is one of the kind of just sort of dreamed about buck apiece of these indexes in place of the metro level around taxes well. So this is Justin sort of aggregate what's happened out here. And the component to this and actual prices paid to producers for Rolen natural gas. They are statewide rig count the number of drilling permits that are issued to droll gas wells the number of crude oil and natural gas wells completed. The estimated volume and value of cruel and natural gas production and direction that of course were reportedly the number of portions that are working that business out there can be jobs exist. So moved it to a draw and that is the fascinating thing right now. And I and it's going through ballistic. It is that it remains below its peak of 2014. Levels when. You know before things what's out. Thanks to an 80% prior discretion crude oil's. What we have right now is crude oil production. And taxes at all time worker levels so we surpassed four billion barrel today marking taxes in early 2008 team. Brutal production blew through its early start is 1972 were gonna send an annual record in 2018. And brick in 1972 record. Already get daily production record right now we're gonna certain natural gas production record nationally in taxes as well. But the petrol index itself is not his ties and was in 2014. Because the rig count was lower the number of abortions although these numbers go up in the rolled up. Strongly. But the number of persons that are working and that businesses below its peak levels in 2014. So anymore. Drilling permits and well completions what does this tell me Willett tells me that the industry has gotten very very efficient at doing what it's doing. And it is producing more with less. This is what all industries endeavor to do the hauling yes businesses to determine who first serves and with a vengeance. So while these numbers wrong derives mostly well oil and gas companies are doing is producing more than they ever have before and taxes. And making it available. Some of the taxes and US consuming public of household and business level than very importantly were exporting more of that now than we ever have before. Approaching 40% of what we produce is now being exported somewhere else in the around the globe so it a lot of moving partially it is but. These things that were witnessing right now or are as our businesses term view and I've used before which transformational. Nature. And were witnessing things that we just didn't think were possible for the longest period of star. The Al. How about these these. Then I mean that you mentioned earlier in the show that the beat the handwriting is on the wall the economy's growing. It's such a right now that it's gonna last probably I think that most folks thank you and into. The end of 2019. For the next year but how about some of these. Talk about the economic impact of some of these pipelines in them the export people don't realize how we actually export at a Houston and have Corpus Christi since. And these major companies are pouring billions of dollars into. Oil and gas right now. Well what happens is in this is get a pretty simple concept. When you produce crude roller natural gas at the field level another word somewhere out in the middle of nowhere in west Texas. What you need to be able to do was get that from work comes out of the ground to the marketplace the marketplaces even further refining complex along the coast. It's postal export markets as part of the natural gas into the state into the country of Mexico. In other words a testicle from there to somewhere else the extraordinary. I'm beat extraordinary production rules for both crude oil and natural gas in the Caribbean has simply overwhelmed. The ability. Which is often refer to stick to what capacity and capacity of pipelines to move that elevator to the marketplace that is where that might be. And in fact rather firm engines state that does great work. And there are estimation is that from may to June of 2018. The amount of crude oil produced in the Permian. Now exceeds the pipeline capacity to get it out of there to market. Kills this means that the market that or guest producer of the industry is screaming army's screaming. For her. Additional parts on its way capacity to get that out of their due to market so this is the of these with the origins of the pipeline project who you're talking about and they simply cannot get here fast and off. So are we in a position I mentioned going into the break. And I love this Rick Perry are former governor gets. Not enough credit for setting up the economy that were living in today during his governorship now he's secretary of energy. And Donald Trump instructs him when he walks into the office who you don't need to make the United States energy independent you need to make the United States energy dominant. Is it true that we are gonna pass surpass some of the Middle East cut countries in production. Yes so dependent on what one's. Definition of that apple might be I'm probably off for that I expose the chaser to in which. A might take issue with that if energy dominance means listen we're here or going to a lounge you. Taxes than you actually gas producers to do what you do best we York only care about the way of state the way. You are going to produce an ever greater amount of what we consumed locally and then work going to give you the ability to export that around the globe as well. If that's what energy dominant means I'm all for it. If energy independence and dominance means that we decide by policy that we are never going to import another barrel of crude oil. I would be opposed to that for a host of reasons not the least of which is that our refineries in the country are not greatly set up to refine what were producing right now. And that's exactly right so. We need the ability to import what we or. Set up to refine. And process we need the ability to export while others are best setup to refine. And process and this is the essence of trade. You know we'd do what those who are competitive advantage best and they do as well ultimately. What we need something we have the wealth to go out and global marketplace and buy it. And so. That's got to where we are social energy dominance means that first the thing's bring it on metal ball for a we have. We've reduced the amount of crude oil import relative toward usage from about 65%. 65%. Just think about that in the mid 2000 students we probably got down to about 40% in 2014. Went up again when things went south in the you'll attest business here now on the way back down again. I don't wanna get all the way it is he wrote because we need the ability to trade for. The kinds at all brutal as not to say we need the ability to trade for the card to crude oil that were best setup to refine and process. Here in the United States but. There's no doubt about the fact that we have we have unshackled ourselves from the impacts of geopolitics in the Middle East and OPEC or whatever it is they're trying to do. Through market collusion now appear. And beat. The Euro consuming. Public in the United States is the great beneficiaries of this. Okay well Korean government we've been a great beneficiary of your your time in your input we really appreciate you join a NASCAR anger and from the Texas alliance of energy producers. Appreciate your wisdom I hope you'll come back in the future William. Yes sir thank you so much for having me in the thing we did not get to do today that I was hoping we would have to do is argue about terrorists but will do not a. Will do that next time scarring on Texas lines of energy producers thanks for joining us. I started off the show folks this is all goes toward the American mindset of American jobs are common back American. Families are feeling good about their family finances. And we hope you'll join us to talk about more of the same next week. From 1230 to 130 right here on talk thirteen seventy the right choice for the Texas insider show I'm Jim colonel have a great weekend.
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