PetroChina surpasses ExxonMobil in oil production
Former Shell Oil CEO John Hofmeister reacts
- Duration 5:05
- Date Mar 29, 2012
Former Shell Oil CEO John Hofmeister reacts
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Welcome everybody I'm Neil Cavuto -- incredible and we may have a problem with big oil in this country.
But not the Chinese -- big oil in their country.
Today for the first time ever.
The world's biggest publicly traded producer.
Is from China.
Not the US.
Detect -- China.
Our company that wasn't even around thirteen years ago now pumping 2.4 million barrels of oil a day.
A 100000 more barrels -- X and a reminder that those countries that puts their oil.
Well they've rule -- so right now China is ruling we are drooling and those.
They are still soaring former Chelsea yards on -- -- says it really doesn't have to be this way but John talk about.
Impeccable timing a -- oil companies and their subsidies.
And our biggest.
And Texas and.
Well the big difference.
-- and everybody should understand this.
Has had all the backing and support that they need from their sovereign government the People's Republic of China.
And all the other domestic US companies have had nothing but -- back -- -- hand.
Of this administration.
Since it came into office.
The president is partly responsible.
So are his predecessor presidents Republican and democratic.
This government in this country.
Has chosen to live off imports.
Instead of developing domestic natural resources.
For most of the last forty years.
And this president this administration.
Has done nothing in the last three years.
But -- put obstacle after obstacle in front of American companies try to serve American consumers.
With American natural resource as -- -- -- just aren't that greater China which has -- -- wasn't even around 113 years ago.
Debt to be number one something that's.
Well China has a number one priority -- economic development.
You don't achieve economic development without abundant oil and natural gas resources.
So they have basically written a blank check for petrochina.
To go do deals with state owned oil companies.
All over the world.
To make sure the China gets all the oil it needs in 2005.
China use five million barrels a day.
This year it's ten million barrel today at a 2015 it's fifteen million barrels a day.
That's a tripling of the oil consumption.
Over a ten year period.
And we used twenty million barrels a day and a full economy we're down to about eighteen million now given all the layoffs and and the recession that we had.
But we only produce about seven we.
The next -- on do you find it odd that part of the rest of of the president to keep pushing for example subsidies.
For Green technology.
And even -- the you know that the general oil industry is that China if we don't -- -- is going to control.
That that industry.
But apparently outside is getting to the point where it's been good -- this industry and that's okay.
But China has been using cash loans to state owned oil companies.
To guarantee oil deliveries.
So they are subsidizing the production of oil in state owned oil companies to make sure they get what they need.
The US oil companies.
Get these limited tax breaks but keep in mind US oil companies pay somewhere between 35 and 38%.
Of their net income in taxes.
You don't see that in petrochina.
What you see is China -- making sure.
That their economy will grow regardless of what it takes while we have a president and an administration who was holding back.
Domestic resource production it's okay to support wind and solar and biofuels.
But it's not gonna deliver material energy for decades into the fuel let me ask you that the president let -- -- it -- -- it.
Do you think that the president was aware of the timing of his remarks this morning.
On the very same -- he's -- big oil that.
Our biggest domestic -- -- ExxonMobil.
Would fall to number two -- do you think he just didn't care.
I don't think it matters to the president he's on an agenda it's called reelect me.
And it's all about the election the last three years we didn't hear the president talk about an all in all the above oil strategy.
It's only in 2012.
That suddenly we have an all in all the above energy strategy.
And it's really about November it's not about fixing the underlying problem.
Okay John thank you very much again for it those you just tuned in today it is official are right now ExxonMobil let's bulletin number two.
As -- of the world's single largest producer of oil a Chinese concern petrochina.
Is now the world's number one a company that did not even exist.
Thirteen years ago.
That my friends.
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