VALUE: After Hours (S07 E14): Energy Prices, Oil Politics, and Strategic Manufacturing

During their recent episode, Taylor, Carlisle, and Bill Brewster discussed Energy Prices, Oil Politics, and Strategic Manufacturing. Here’s an excerpt from the episode:

Tobias: But to be fair, it’s actually 90 bucks in the States to get it out of the ground. It’s not 22 bucks. This is one of the problems that we’re having at the moment, is that the rest of the world produces oil much more cheaply than the States produces oil. I saw a chart on this when I was watching one of the China guys. I think China and the Middle East, Saudi Arabia, they’re all producing at 20, 30 bucks, 40 bucks, and the US is punching it out at 90, so that makes it– That’s a problem.

Jake: That high, huh?

Bill: 90 feels high.

Tobias: Well, that’s where the break-even is. I had in my mind that break-even was 65, 70. And then, we spoke to someone, JT, I thought who said it was 90.

Jake: Yeah.

Tobias: Josh–

Jake: Yeah, on the show.

Tobias: Josh said it was 90. I was shocked. At a 100 bucks, which used to be like– When it hit 100 bucks, that used to be–

Jake: Yeah. Batting down the hatches– [crosstalk]

Tobias: Yeah, it’s front page news and we’re in a lot of trouble when that happens. And 100 bucks here, they’re making 10 bucks a barrel.

Bill: Seems low, but maybe. So, what do you think– Did you guys watch the car charge in five minutes in China?

Tobias: No, we were–

Jake: No, I didn’t see it.

Tobias: We saw somebody ask the question and get the answer in Chinese.

Bill: They announced another car. They’ve really been announcing a lot of tech news since Trump was elected, which is interesting. I don’t know, if they can make cars like that are that cheap, I don’t know, do our automakers stand a chance?

Tobias: No. European automakers first.

Jake: [chuckles] So, gosh, the counter argument to that, I think is– And it’s a little bit dire, but do you want to give up your ability to make food strategically as a country? Probably not.

Bill: Yeah. No.

Jake: Do you remember World War II where GM made a boatload of tanks?

Tobias: Yeah.

Bill: Yeah, you need the car manufacturing.

Jake: Do we need to just keep these things for other reasons than purely like, because you want to drive a car that’s– It’s the only one for sale in your neighborhood, because we don’t let BYD in.

Bill: Yeah.

Tobias: The two arguments that I’ve heard are, one is US don’t– [crosstalk]

Jake: At some point though, economically, isn’t that become somewhat foolish? I don’t know. There’s some number there where it’s– You’re hurting the consumer so much. I don’t know.

Bill: Look, this is the– I’m sorry, go ahead.

Tobias: No, you’re fine, I just meant there’s one argument that I have heard that the US owns all of the that are very hot– the intellectual property of the manufacturing chain. So, even though they don’t, we don’t make the– [crosstalk]

Jake: What does that even mean?

Tobias: Bits and pieces.

Jake: We know how to put it together?

Tobias: But you can outsource the make of all the components.

Bill: We make the blueprints, they make the things.

You can find out more about the VALUE: After Hours Podcast here – VALUE: After Hours Podcast. You can also listen to the podcast on your favorite podcast platforms here:

VALUE: After Hours (S07 E14): Energy Prices, Oil Politics, and Strategic Manufacturing

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