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tv   Boom Bust  RT  February 1, 2022 7:30pm-8:01pm EST

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context, context is really the key to understanding our past and probably understanding our future as well. well that say your bang up to date with all the latest from around the world. feel free to head over to r t dot com for more stories in depth analysis monies be discussed. and i'll be back again at the top of the hour. ah ah, ah ah, bring you the very latest every out the day. this is ok. he now snow from everyone here with,
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[000:00:00;00] with this is boom, bought the one bit show you care. the fordham it brings you more. can i make it? love is in washington coming up. it may be a new month, but it's more of the same delay for the north, you and your pipeline. we'll take a look at how tensions over ukraine are impacting the state and the completed project fly. all eyes are on opec loss, as it will. prices remain your $90.00 per barrel. good. the car solid ramp up production that had a schedule for this guy. then could the federal reserve raise interest rate sab been times this year. we'll bring the latest connections with analysis. got
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a lot to get to get started and we leave the program with the latest on the fate of the nordstrom to pipeline a mid another day of tensions in the u. s. ramps up are possible military conflict with russia. the president of the european commission said monday that the gas pipeline from russia to germany has been put on hold. and the commission is looking into the projects compliance with europe's energy policy. following a meeting with the amir of guitar in which energy supply in europe was discussed, president biden continues to say, all options are on the table when it comes to tensions in the region. and today the in the united nations, we've laid out the full nature of russia's threat to ukraine sovereignty and the territorial integrity of ukraine, as well as the core channels of a rural based international order. and we, we continue to urge diplomacy as the best way forward come, but with russia is continuing to build up its forces around ukraine. we are ready,
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no matter what happens if here is that the you is responding to pressure from the us to prevent the north through him to pipeline from coming on line. but what's interesting here is the european gas prices have actually tumbled after russia increase the supply of natural gas to europe by sending more gas through ukraine. so what does all of this mean for the ongoing tensions in the region are joining us . josh is doing bus co host an investigative journalist on now been let's start with what's happening with natural gas prices. so why has russia increase increase its supply to europe? well, a couple of things of happened. one is, yes, russia has increased that supply specifically moving through ukraine. they're not sending that gas, obviously, the north street to right now. that's been the big argument for all this time is that that gas needs to flow through pipelines across ukraine for which ukraine gets transit fees. but that's already happened that actually caused a oil futures to drop by about 12 percent. the other thing that's fairly
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interesting about this is you have warmer weather in europe right now. so the, the demand is not as high, and you do actually have a larger output right now from wind resources in places like great britain. so all of those things combined and actually taken some of the weight and some of the stress off of the system. but a big part of it can be denied is the fact that russia is sydney more natural gas now than they were before. and that's obviously good for markets and it's good for the prices. and now been a russia which typically provides around 40 percent of europe's natural gas. it has sought to down play concerns that it could substantially decrease the flow of fuel to europe. if war were to break out, but many european countries don't seem to be reacted to that idea of fear. why is that? well, i think a lot of them, 1st of all, i think this idea number one that european countries are lining up to go to war. with russia is simply wrong. i think if you listen to the biden administration, if you listen to neocons in washington, they'll tell you that's exactly what's happening. but if you look at the reality of what's happening here,
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countries like germany who would be the 1st recipient by the way of gas coming through that nordstrom to pipeline, are not lining up to say, yeah, we want to be a part of this. in fact, they're not even willing to commit any resources to this effort right now as president biden is calling for them. so i don't think a lot of european countries are necessarily wanting to see this kind of a conflict. i think that they see how serious it is much more serious than americans seem to think that it is. and then of course, the fact that they recognize that they need that russian natural gas. but the russians don't necessarily need them. they can always sell the china, which has a huge growing need, but also remember this too, that europe right now buys a lot of gas from russia and natural gas from russia. which means that it is a huge part of russia's bottom line in terms of being able to derive revenue and derive income for the country. so they're not going to be quick to cut off any pipelines or any supply to europe, nor does europe one to see that. i think again, a lot of this is being talked up by people who don't have a whole lot of skin in this game. and certainly as the one thing for the united
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states to sit there and try to talk about waiting wars around the world, it's become almost common here. but for europe, this is something that would be going on literally in their backyard. so obviously that's something that they don't want. now another thing here has been the fact that we've seen the vine and ministration and enforced the trump administration before it. pushing heavily for european nations to abandon russian gas while purchasing what they referred to as u. s. freedom gas, what a name instead. but that strategy hasn't really worked out. why is that? well i, i would say the number one reason as you call it, freedom gas, a horrible name. the also referred to it as freedom molecules, right? that they work with a cell around the world. it's ridiculous that sound stupid. but on top of that, look, i think the u. s. has an an ability to come in and say, hey, we're able to help provide natural gas. ellen g, right, for these different countries in some countries have responded by building out an area specifically for this. poland is one of those countries, but most european countries did not. they were not really interested in this idea.
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why is that? well, couple of reasons. one is that russian natural gas is much cheaper than american natural gas. and so when the americans come in and say, hey, rush is a threat. therefore you should pay more to buy and freedom gas a just doesn't translate into reality. and so again, it's this idea, listen so much in the economy right now, especially coming from the united states is a fear based economy, right? they're basing so much on fear that if you buy from us, you'll be safer, even though you'll pay more than that. arguments just not going to fly with a lot of countries around the world. this brings back the old idea of freedom fries as well. we get really original here sometimes. now i've been, i have about 30 seconds left, but i do have one more thing i want you to hit on a president biden on monday. i also designated guitar a major non nato ally. i, how much of this is really about their supply of natural gas? i think is a 100 percent of other supplies. natural gas, the president says, it's also because they help with evacuations out of afghanistan. that's not what
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it's about. it's about the fact the biden administration has been propping up in promoting this idea. that guitar actually has a lot of natural gas and that europe should be buying from them from the united states and not from russia. you run into the same problem. it's the price and also the fact that you know, the idea that countries like saudi arabia and guitar are allies, a lot of times european countries, i think you're going to hesitate on those ideas as well. rush as a monster, you can't buy from them. but the saudis, and, and guitar, there are friends, why? right? and, and nobody seems to be able to explain that. so i don't think that that strategies are going to work either. the bottom line is, the biden administration is trying to reassure european countries. hey, you can always cut off russia, we have enough natural gas for you. i don't think that argument is accurate and they continuous strategies that are almost as ridiculous as the sound of freedom gas them thus vents on. thank you for your insight. thanks guys. and sticking with the energy sector, oil prices fell off of 7 year highs on tuesday as opec plus members prepared to
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hold their 1st virtual meeting of the year to discuss output policy international benchmark. brent crude that just sends below $90.00 during the afternoon, while west texas intermediate actually gained on mondays prices more than $88.50 per barrel. now it's generally expected that the cartel will stick with its plans to raise output gradually by $400000.00 barrels per day in the coming month. but a recent report from an analyst at goldman sachs says price is sitting near $90.00 per barrel due to increased demand are actually creating a quote growing potential for a faster ramp up. so joining us now to take a look at the outlook in the oil industry, the boom bus co host, chris, the i, and kirk edwards, the former chairman of the permian basin petroleum association. kirk, i want to start with you on this, and i want to start with opec plus here. i mean, do you agree with goldman that market conditions are increasing the chances of the cartel actually ramping up the output sooner rather than later?
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and if not, what is it going to take for them to make a move here? well, it's very interesting because they could have done it all year long process got to 607080. they could have put more on the market, but they didn't buy like seeing will prices in this area. and i think they think it's good for them right now. and i have no idea what they think process are going to be. but i sure see that higher prices are looking more certain to be the lower ones right now. yeah, it is crazy to think that just a few months ago we were talking about the possibility of $100.00 per barrel for oil. now it's looking like a very near reality. now. christy, speaking of rising prices for consumers at the same time, producers are having a field day as exxon mobil reported $23000000000.00 and profit for 2021. while chevron reported $15600000000.00 for the year, both seeing their highest profits in 2014. now shell and b p are also expected to
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post good numbers this week. so what are these big earnings telling us about the recovery of oil demand? well, it's kind of showing that the worst days of the pandemic may be behind us. now as the oil and gas market is already on a steady volume and price recovery mode. since and dork lowes and mid 2020. so especially the sustain recovery from asian oil demand is a sign that the worst is over. as far as the pandemic is concerned, the asian market is a major driver and the global energy dynamics. with about 40 percent market share and global energy consumption, primarily from oil and gas. so global oil demand is seen growing approximately $3.00 to $5000000.00 barrels per day in 2022 with analysts. the immediate impact from the current cobit search, and we are soon expected to return to a pre call with level in early 2022. however, while demand for oil and gas has rebounded rapidly, global investment recovery has not kept pace. so we have seen a reduction of leverage, price volatility,
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and the government's energy transition plans remain constraints in the space. so all industry is massively under investing in supply in order to meet the growing demand. so last year, global upstream investments. thank to a 15 year low of $350000000000.00 down from $600000000000.00 before the pandemic. so that's going to be one of the biggest wallet cards in the market and how this under investment will affect supply and the other wild cards of courses, inflation, and also the possible return of iranian barrels. right, and i know certainly there's been push to go towards clean energy sources, but at the same time, we're also still seeing how much we still need oil around the world. no kirk going back to opec. here, producers fell short of the allowed to supply increase under their agreement. now we have seen this happen before, but why aren't they meeting the goal here and does that impact what they're looking at in terms of future increases? well think krista hit the nail on the head and it's the investment even you saw how
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the united states to not invest a lot last year and in our infrastructure and all the gas properties, the same thing happened in opec countries and overseas. and so a lot of people just didn't put in the dollars they needed to build up the reserves, the have them ready to come on at anytime. same thing goes with russia. sally always has extra burials to put online at any time. but there's sure needed to be a whole lot is really going on for these companies to be able to, to just put it on the market today. and there's gonna be a lot of lead time for that. and she mentioned chevron and exxon and their earnings today. to darren was with excellence at the day that they're not going to chase us or ross, they're not gonna put a lot of rigs out on the market right now. to drill for this and they're going to be complacent. same thing with pioneer said the other day to see this is going to be a very interesting the next 6 months to year ahead. when the capital expenditures have not been made to bring the world to market and curve. i mean, we talk about this investment and how, you know, if they're not going to go and chase these oil prices,
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that means that unfortunately the price is probably going to keep going up. i mean, so how close are we in european curve to that $100.00 per barrel oil? or i think were there any, any action by russia is going to spark process for either which way they decided to go as far as ukraine goes right now, especially the natural gas price st. and i'd state those, we're going to be containing that go, harley went, skyrocketing last week as you know. but i will say we're way closer to a 100 then going back to 80 as we have been in the past. and i see as a certainty coming out pretty sure, pretty soon i will say the next 2 weeks. and chris, i have about a minute left for you. what do you think of that? absolutely. i agree that $100.00 oil is pretty much already here. same where pretty much at record levels before this latest oma calling very in and hit. so we're going to see air trial will continue to recover the global economy continue to grow
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and that's going to be all lead to higher demand. so we're actually going to see it, but at some point, i think we're also going to see demand taper off as well because $100.00 oil will not be sustainable for a long period time. boom bus christiane kirk edward's former chair of the permian basin petroleum association. thank you both for your insight in analysis today. thank you and i'm out for a quick break. but when we come back, what does the future hold for the federal reserve policy as some on wall street or calling for that been interest rate hikes this year? well,
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we'll discuss that on the other side of our break here. the numbers of a it's a new secret that private military companies have been playing a role in our conflicts world wide. u. s. government doesn't track a number of contractors and uses in places iraq or afghanistan, the united states army. and the military in general is so reliance on the private sector. i would call the dependency, but we don't know who's the on the ground presence of these companies overseas. we just don't out west and private military companies can in it turn. you so cool. subcontractors from countries with trouble pass. the chances are quite good that they had also been child diligence. i was a j, as a, as my job professional is with the full moon one full good. if i said that with no food, no minimum own wall,
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which i mean to be merciless killing machines, now they fight and die in other people's was people carol lot, when a dead soldier or dead marine shows up in this country and then we start asking ourselves why did they die? why, what would a fighting for? nobody bother stamps by day contractors? ah. what happened? i make no, no borders under slide number t's and you as a merge, we don't have a charity. we told them that the whole world needs to take action and to be ready, people are judgment, common crisis with we can do better,
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we should be better. everyone is contributing each in their own way. but we also know that this crisis will not go on forever. the challenge is great. the response has been mess. so many good people are helping us. it makes us feel very proud that we're in it together with the the news. the welcome back, the federal reserve said, and finally getting serious about tackling inflation. and as a result, the u. s. central bank is looking at not just 3 or 5, but said that interest rate hikes between now and the end of year. that according to the latest analysis from bank of america, the global research team, which is predicting the fed will increase interest rates by
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a quarter percentage point every upcoming meeting this year. putting the target between 2.75 and 3 percent by the end of 2022. meanwhile, the feds current policies continue to take a toll across the country. the labor department noted that wages have increased 4 percent in the last year, marking their fastest rising to decades, but that's nowhere near the rate of inflation, which is sort it faster. pace in for decades. americans are feeling the impact at every turn, especially when it comes to the most basic cost of living. their rent, rent has skyrocketed across the country by as much as 30 to 40 percent in certain parts of states like texas, new york, new jersey and florida. and those numbers aren't expected to come down anytime soon . so further in depth on this was the ceo of miss, i'll see. and michael pen, so ceo of pinto portfolio strategies. great to have you both on the show today. michael,
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let's start with you. i know we have gotten to the point where inflation is quite frankly, out of control. but even if the fed does raise interest rate 7 times this year, is that likely to have a major impact on the soaring cost of living? so $7.00 times i can take the under on that one. so how do we get to you are correct intractable inflation at this point? 7 percent your, your well, the government gordon is a great idea to hand out 6 trillion dollars. the people helicopter money dropped and the federal reserve monetize $4.00 trillion dollars. after taking the interest rates at 0 percent. so let's see what's going to happen now this year. so we're going from $120000000000.00 a month and q e to 0. this time next not under $25000000000.00 a month to 0. and then we're being told that the reserve is going to raise interest rate 4 times this year at
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a minimum $4.00 to $7.00. and then we're going to be told being told that they are going to undertake quantitative timing to june of about $100000000000.00 a month, extra range between 80 and a $100000000.00 a month storing some time around june. so i say they never get the 7, maybe they get to for the entire economy, implodes, especially their massive as the bubbles that they created. and that'll bring about distance lation to deflation in the short term before we go about reinventing the whole house is right there. octavia, that's what i was going to get with here and here. dex because there's already been a lot of concern over the possibility that just 3 hit right high or for a high will affect market heavily with january marking the worst month for the stock market. since the beginning of the pandemic is, this is signal that the year of record highs and easy money have come to an end.
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and 2 or 230 said, what do you think of what michael thing there? i think michael and i once again are in violent agreement, it is going to do now is going to work. so i think it's going to be exactly that. i don't think j. powell has the stomach for this. he knows to get inflation under control. he's going to have to increase in straits much, much further. i mean, look back to the ac is when, when the yields on the 10 year bond with an i 50 or 16, send them as an unthinkable level these days. that was what was necessary to get in place under control by then. and inflation rate is back at those levels. so does j power the someone to do that? no, i don't think he has. he showed us that back in 2018 when he took over, he was going through a bit of a tightening cycle, then the equity markets didn't corporate impact very quickly. so i think is going to follow that that sort of muster again, is going to basically chicken out as soon as the markets don't agree with them. i don't know what point i will be asking them 20 percent or 30 percent. something
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like that. i think because i can't take anymore. i'm going to jump back in. exactly like michael said, so i think that's how it's going to unfold. so in the very short term, we're not that far away from recognize him. if you look at the diary, any 4 percent below it's low, i mean that's within spitting distance. so we might see some highs and good bit high here and there. but i think once the training does start in march, that's going to be over for some time. and then in the latter part of the year, i think going to be back to the races of the races again. and michael, i mean, i know you laid out exactly what the fed has actually done to this academy and what's going to probably happen if they move forward with at least half of the ideas that we're hearing about what they might be doing. but the question is, what could they do to at least limit the disaster that might happen to the united states economy at this point? well, it's already a disaster. i look, look at the yawning gap between the very rich and the poor, just growing, waxing, ever and ever deeper. you mentioned that home prices in certain parts of the country are 40 wrench, 40 percent. so you traced out all you know,
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the entire 1st time home buyer for the most part as impressed out of many markets in this nation. and of course, we all understand that the lower middle class and lower classes feel inflation. the most salient li, so 7 percent, which is really 1415 percent, if you will get placed in pre boston is destroying the middle class. and i'll tell you that what they've done is also create record on stable active prices. morgan, stock morgan. and that in the real estate market. so i mean, you asked you if there, if there is no way out of this, listen that the jews do, they want to defend the one percenters of the world. the people like me and the most of the people watching your program, i'm sure where of course, octavio look at his backdrop. there are and why, why do they want to check the middle class? and so since the national debt to g d p is already
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a 130 percent to that all time record high interest rate normalization is impossible. i don't know how far they get along to that pair. but on the way along to interest rate normalization, they will destroy acid prices in the economy. once again, it seems like they've gotten themselves into this endless cycle that they have done to themselves. now octavio to that point. i mean, which way do you see the fed going, are we going to continue to see them act in the interest of the stock market as they have over at least the last 2 years? or is there some chance that they could actually act in the interests of the american people, especially when it comes to those who are hurt by inflation the most? well, i think that the, the biden administration is going to start to see inflation as an increase in political liability is going to become a very big problem for them in the mid terms this year going up to the next presidential election. that's going to be a major, major issue that the current to show that doing something about what i'm afraid is
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that the, by doing the station sort of takes the playbook out of sort of for the, the price control strategy. and the stop price controls already has some democratic senators and congressmen talking about talking about price gouging and things of that sort. now that will make things potentially even worse. so if the fed continues gets monetary policy, but by administration causing some sort of price controls, be it for oil or housing or wages, or whatever they try choose to do needs or that they need to know that that is going to make it very difficult. corporations turn a profit and it's going to be to all sorts of shortages. so things could get worse still if the buyer ministration jumps in and says, i can willing to put a break in place. now i'm going to do that through price controls. that has to be very worried. yeah, there certainly is a lot of day care. but great inside of though is octavia mirandi and michael. and thank you both for your time and for breaking all of this down for you. thank you. and finally, after microsoft made nearly $70000000000.00 deal to purchase,
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activating blizzard rival and play station maker. sony has an agreement to buy game developer bungee best known for creating games in the halo in destiny's franchise. now, bungee had originally been acquired by microsoft back in 2000 as it was the original x box console but split with the tech giant in 2007 as the so called council war is continue to heat up in the latest generation. sony interactive entertainment president. well, he said there is likely to be more acquisitions in the future. and meanwhile, the social media sensation, word game world, which has become extremely popular. and recently, i've just been bought by the new york time, the games creator josh ward, all said the game will initially remain free to new and existing players. now, as for the numbers, the deal was apparently for a low 7 figures. and despite promises, fans are worried that some aspects of work will one day be behind a paywall. you know, this is a game that has really blown up over the last few weeks and, and there's
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a lot of people here on the office that play it. well, you are, okay. me. several people here play at enter, very competitive with it, but hey, maybe maybe they'll leave it free to a certain world ever really expected. probably that that game would be also mentioned in the same as like, destiny and halo and microsoft x box playstation, but good for them. they can use the same exact day. i think that's it for the time to get both demand and the portable tv app available on smartphones and tablets. google play in the apple app store by searching portable tv. portable tv can also be downloaded on samsung smart tv, roku devices, or simply check it out at portable dot tv. well see you next. me. ah, i need you to meet the issue and the
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machine can ah name, let me look forward to redo the whole trouble. i mean kelly, victoria calling massage tissue. that sounds good to me. so she gave me too much clarity. i just had another, you know, if that yak here that i could, hey miss that long ago hoping public debate was considered a good thing even essential for a stable functioning society. today,
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if you do not follow in propagate liberal parties, you are accused of misinformation and should be banned from my society. shut up, or else, ah, ah, with what do we do? go to war with the native blood, as someone thought about this bloody may, a person express has concerns about ukraine's potential nato membership is direct threats, rushes national security. meanwhile, the british pm. torrance is rhetoric against russia and threatened sanctions, grave consequences, and the response from the army, just not britain, but ukraine's and no job, no job, no way. canadian truckers continues to take


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