Kevin O’Leary wants to lower US gas costs, and he plans to accomplish this by constructing a $14 billion oil refinery, according to the “Shark Tank” star in a recent interview with Fox Business.
“We haven’t built a refinery in America in decades because we can’t permit it … And the task I’ve decided I’m going to take on is I’m going to build a refinery in America,” O’Leary said.
“It’s going to cost about $14 billion,” he continued to detail. “I’m going to syndicate that debt and that equity. I’m going to find a state that wants to work with me. I’m going to get a permit and we’re going to do the right thing for America. We have to have more refineries.”
O’Leary underlined the necessity of energy independence in the United States, calling it a key election issue. He cited OPEC+, the 13-nation oil cartel that just announced an unexpected drop in crude production of almost 1 million barrels per day.
“The Middle East, which produces most of the world’s oil, has told every economy including ours, do not depend on us in perpetuity for your energy. If you can find your way to energy independence, you do it and in fact, we’ll invest in it for you because we have to supply energy to the entire world,” he added.
The oil-producing cartel frequently cut crude production in the previous year, worsening supply shortages and driving US gas prices to a new high in 2022. Saudi Arabia, the leading OPEC producer, claimed that the production restrictions were required to contain “dysfunction” in energy markets, saying that oil prices were detached from fundamentals.
The US Energy Information Administration said the country will produce an average of 12.4 million barrels per day in 2023, exceeding the record levels reported in 2019.
Addressing the gas prices in long term, the United States government is attempting to stimulate the use of electric vehicles by enacting new subsidies through legislation such as the Inflation Reduction Act. Some vehicle manufacturers, such as Toyota and Hyundai, have been encouraged by federal and state subsidies to develop new EV production operations in the United States. In addition, some jurisdictions, such as California, intend to prohibit the sale of gasoline-powered vehicles in the future decades.
The investor and entrepreneur went on to say that the hasty transition to renewable energy options is “not going to work,” citing how a wind-powered airplane would be unable to transport passengers over the ocean.
“Unfortunately, no matter how much you think we’re getting off hydrocarbons, it’s not going to happen for 50 years,” he reasoned.
According to the International Energy Agency, existing policies will cause fossil fuel consumption to plateau within the next decade. Fossil fuels will account for 60% of global energy mix by 2050, down from nearly 80% currently.
O’Leary, who’s also known as “Mr. Wonderful,” has become a key figure in the collapse of the bankrupt crypto exchange FTX, standing as the FTX founder Sam Bankman-Fried’s unofficial advocate.
Information for this briefing was found via Markets Insider, Yahoo Finance, Fox News, and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
One Response
Great news Kevin but build the Refinery in Canada