Browse content similar to 18/12/2015. Check below for episodes and series from the same categories and more!
Line | From | To | |
---|---|---|---|
The US prepares to end its 40-year ban on exporting oil. | :00:00. | :00:19. | |
But the question is, will it find anyone to buy it? | :00:20. | :00:27. | |
Plus: Chennai counts the cost, more than 300 dead, | :00:28. | :00:29. | |
and hundreds of millions of dollars' worth of damage. | :00:30. | :00:31. | |
But could the flood disaster in India's industrial heartland | :00:32. | :00:34. | |
I've got about nine minutes. You give me that and I'll give you a | :00:35. | :00:59. | |
fascinating and exciting snapshot of all that is going on in the world of | :01:00. | :01:03. | |
business and money. We will talk about more measures to boost the | :01:04. | :01:06. | |
Japanese economy, at first let's start with what could be a historic | :01:07. | :01:09. | |
day for America's oil industry. We start with what could be | :01:10. | :01:16. | |
a historic day For 40 years it has been banned from | :01:17. | :01:19. | |
exporting crude oil, to protect But later today the House | :01:20. | :01:23. | |
of Representatives is expected to lift that ban, as part of | :01:24. | :01:27. | |
a massive government spending bill. The ban was imposed in 1975, | :01:28. | :01:29. | |
at the height of the oil crisis. Opec introduced an oil embargo | :01:30. | :01:34. | |
after the US sided with Israel The result, oil shortages, | :01:35. | :01:37. | |
soaring prices, A lot has changed since then, | :01:38. | :01:43. | |
most importantly the US boom in US oil production has | :01:44. | :01:48. | |
soared 80% since 2008. It now produces 9.2 million barrels | :01:49. | :01:51. | |
per day, half of it from fracking. That makes it | :01:52. | :01:54. | |
the world's number three producer, The problem of course is this, | :01:55. | :01:56. | |
timing. There is already a global glut, the | :01:57. | :01:59. | |
world is awash with oil, prices are at seven-year lows, and a flood of | :02:00. | :02:03. | |
US crude will just make it worse. Still, the speaker of the House | :02:04. | :02:06. | |
of Representatives argued this week Ending the 40-year ban | :02:07. | :02:09. | |
on oil exports, do you know what that does for our foreign policy, | :02:10. | :02:35. | |
what that does for job creators, It's permanent policy, that's good | :02:36. | :02:38. | |
for American foreign policy, For temporary measures, | :02:39. | :02:43. | |
I think that's very, very good. He is very pleased indeed. Let's get | :02:44. | :02:54. | |
more. Neil Atkinson is head of analysis | :02:55. | :02:55. | |
at Lloyds List Intelligence. Always a pleasure to see you, thanks | :02:56. | :03:03. | |
for getting up at this time in the morning. Who is going to buy... I | :03:04. | :03:10. | |
know the timing is not great. I was looking at shipping for example. | :03:11. | :03:15. | |
Shipping oil from Saudi to Japan takes 27 days. Shipping oil from | :03:16. | :03:20. | |
Houston to Saudi takes 48 days. More expensive. Who is going to buy at? | :03:21. | :03:26. | |
We shouldn't get too carried away. Although this is a historic step and | :03:27. | :03:28. | |
it is something that should have happened a while back and it is | :03:29. | :03:32. | |
hugely important, it does not mean that there are suddenly going to be | :03:33. | :03:35. | |
a flood of US oil sailing away from the US east coast or the US Gulf | :03:36. | :03:39. | |
Coast looking for customers. Because as you say there is already a glut | :03:40. | :03:56. | |
of oil in world markets. World oil demand growth next year is going to | :03:57. | :03:59. | |
be less than it was in 2015. It is more of a historic step in terms of | :04:00. | :04:02. | |
a free trade issue. Every other oil producer in the world can produce | :04:03. | :04:05. | |
and sell their oil to whoever they wish, with the odd exception. The US | :04:06. | :04:07. | |
already exports, and this seems to be a relatively little at a known | :04:08. | :04:10. | |
fact, an enormous quantity of products. An enormous exports of | :04:11. | :04:14. | |
gasoline and other products. So a ban on exporting the raw stuff, the | :04:15. | :04:20. | |
black stuff, but it exports... It exports gasoline, diesel in enormous | :04:21. | :04:25. | |
quantities. You have taken the wind out of this story altogether! This | :04:26. | :04:29. | |
is the interesting point. There has never been a ban on product exports | :04:30. | :04:33. | |
but for many, many years there was no issue with exporting products | :04:34. | :04:36. | |
because the United States needed all the product it could get and it used | :04:37. | :04:40. | |
to import oil products as well is importing crude oil. But in recent | :04:41. | :04:44. | |
years as domestic production has increased enormously, as you said in | :04:45. | :04:47. | |
your introduction a second ago, that crude oil has been bought by | :04:48. | :04:53. | |
refiners at very low prices, because there is a glut in the United | :04:54. | :04:58. | |
States. Those refiners than take the product they make in the refinery, | :04:59. | :05:02. | |
sell it in international markets at international prices and make a shed | :05:03. | :05:07. | |
load of money. Can we put the picture here, if you add the oil | :05:08. | :05:12. | |
from the US, next year possibly uranium oil is going to come into | :05:13. | :05:15. | |
the market and possibly Libyan, I keep hearing. -- Iranian oil. We | :05:16. | :05:23. | |
definitely have the possibility of being sold somewhere else and not | :05:24. | :05:26. | |
just the United States but we shouldn't be excited about a flood. | :05:27. | :05:30. | |
Number two, we Iranian exports almost certainly entering the market | :05:31. | :05:34. | |
around about the Easter period. There is always the possibility of | :05:35. | :05:37. | |
there being some sort of settlement in Libya between the two rival | :05:38. | :05:42. | |
governments that you have there. Were that to be the case and were | :05:43. | :05:45. | |
they to get their act together in terms of export capabilities there | :05:46. | :05:49. | |
would be potentially a big volume of Libyan oil entering an already | :05:50. | :05:54. | |
glutted market. And that will put the pressure on. We have to wrap it | :05:55. | :05:56. | |
up, unfortunately. Thank you. The state is | :05:57. | :06:00. | |
the nation's industrial heartland, home to its huge and fast-growing | :06:01. | :06:03. | |
auto industry, as well as other In recent weeks, | :06:04. | :06:06. | |
you will remember these images, it has been devastated by floods that | :06:07. | :06:10. | |
have killed more than 300 people. The cost to | :06:11. | :06:13. | |
the economy is expected to run into Sameer Hashmi has been to the state | :06:14. | :06:15. | |
capital Chennai to report on the clean-up operation, and growing | :06:16. | :06:19. | |
questions about whether the city The rain has stopped, and now it's | :06:20. | :06:38. | |
time to try and salvage what they can. At this paper company they are | :06:39. | :06:44. | |
trying to get stock to a dry location, away from the flooded | :06:45. | :06:49. | |
factory. Diaries, calendars and stationery were all made here. But | :06:50. | :06:53. | |
most machinery and even the office furniture is ruined. TRANSLATION: I | :06:54. | :07:00. | |
have incurred a loss of nearly $40,000. We cannot take any orders | :07:01. | :07:05. | |
now. All the customers I hard have left us. Now we need to start from | :07:06. | :07:10. | |
scratch -- I had. After all of us struggle to run this factory, | :07:11. | :07:13. | |
absolutely everything is gone. I have no idea what I'm going to do | :07:14. | :07:18. | |
next. Now, you'll find all sorts of small businesses here from producers | :07:19. | :07:23. | |
of car parts and pharmaceuticals the exporter 's and rubber processing | :07:24. | :07:26. | |
factories. These unprecedented floods | :07:27. | :07:31. | |
me that they have no idea how long it will be until they can | :07:32. | :07:47. | |
country and a major contributor to India's economy. Global car | :07:48. | :07:50. | |
companies like Ford and BMW have factories in the state and so | :07:51. | :07:53. | |
suppliers like this one have base themselves here as well. It a lot | :07:54. | :07:59. | |
also India's second biggest hub for IT firms. Questions are now being | :08:00. | :08:02. | |
asked by how so much damage was caused by just a few days of heavy | :08:03. | :08:07. | |
rain. Some experts say it is because the city, like many others, has been | :08:08. | :08:11. | |
developed without much thought given to the environment. Immediately | :08:12. | :08:15. | |
after every severe weather, there will be a response, but that is not | :08:16. | :08:20. | |
good enough. We need a plan in place and best practice around | :08:21. | :08:26. | |
investment. It is very important, good data. We are very much lacking | :08:27. | :08:31. | |
in that. For Chennai and other parts of Tamil Nadu, it is going to take | :08:32. | :08:34. | |
months for its people and businesses to pick themselves up and get back | :08:35. | :08:39. | |
to normal. But the bigger question about how to improve infrastructure | :08:40. | :08:44. | |
to make sure natural disasters have less devastating results will take | :08:45. | :08:45. | |
much longer to clear up. Let's head over to the Singapore | :08:46. | :08:53. | |
office, talking about Japan's Central Bank. What have they done | :08:54. | :08:58. | |
this time? They boosting the economy? Well, well, Aaron, a | :08:59. | :09:03. | |
surprising move as you say but not involving interest rates, which | :09:04. | :09:07. | |
continue to remain near zero. They have essentially introduced a new | :09:08. | :09:10. | |
programme supporting companies actively investing in the economy. | :09:11. | :09:15. | |
They have also started to tweak it on the buying programme. Basically | :09:16. | :09:20. | |
this was the last meeting of the policy makers -- tweak its bond | :09:21. | :09:26. | |
buying programme. Firms dedicated to capital investment, as they put it, | :09:27. | :09:30. | |
companies which are proactively investing in physical and human | :09:31. | :09:34. | |
capital. Of course we know that the government and the central bank have | :09:35. | :09:37. | |
been urging companies for months now to invest more but there has been | :09:38. | :09:40. | |
very little signs that these companies have been using their cash | :09:41. | :09:44. | |
reserves which are at record highs. The central bank is mention made | :09:45. | :09:48. | |
some other tweaks including plans to buy slightly longer term the | :09:49. | :09:53. | |
Japanese lines starting next year. They also expanded the type of | :09:54. | :09:57. | |
assets they are buying including purchasing more risky assets. All of | :09:58. | :10:01. | |
this saw the Nikkei rising briefly on that news but it has since fallen | :10:02. | :10:06. | |
back and looks set to end the week flat. Great stuff, we are running | :10:07. | :10:11. | |
out of time. Thank you. We will talk to you very soon. | :10:12. | :10:17. | |
Don't forget, you can get in touch with me | :10:18. | :10:20. |