Is the U.S. really energy independent? Why does gas cost what it does, and who or what controls the price?
Matt Randolph is vice president and principal partner of Sentinel Energy, based in Oklahoma. He's better known as “Mr. Global” on TikTok and other social media. He is a globally recognized oil and gas expert, and he spends much of his time debunking misinformation about the oil and gas industry.
On this week’s edition of “Weekend Insight” TPR’s Jerry Clayton talks to Randolph about the state of the oil industry, gas prices and more.
This conversation has been edited for length and clarity.
Clayton: What is the most prevalent myth that you see repeated about the oil and gas industry out there on social media?
Randolph: Really, that we're no longer energy independent. We're more energy independent than we have been in over 70 years. And that is agreed upon by all experts across the industry.
Clayton: I'm looking for a simple answer to what's a very complicated question. And that's what drives gas prices in the United States? A lot of folks want to say that it's the current administration that controls gas prices. But what is the actual driving force behind what we pay at the gas pump?
Randolph: Well, you have to keep in mind, gas is a commodity. It's sold just like oil. It's sold on an open market. And the price of oil really drives the price of gasoline. And over the last few years, OPEC plus has continually cut production as we increase production to keep oil prices at their [current level]. They're trying to get an $80 floor. That's the lowest they want it to be.
So that's the biggest driver of gas prices in the United States, is that OPEC plus is producing 4 million barrels a day of oil less than they were a few years ago. That, and we lost some refining capacity during COVID. And those two things together, are a real sticking point for gas prices. And it's going to be very, very difficult to really ever bring them back down to where they used to be.
Clayton: You mentioned that the U.S. is energy independent and has been for quite a while. What does oil production look like today in the United States?
Randolph: We're currently producing 13.3 million barrels of oil a day. For 2023, we averaged 12.9. And that was a record year. So, we will set another record in 2024. But I don't expect us to increase oil production much more this year because as we increase it, OPEC just continues to decrease. It's hard to say what the benefit is for us to continue increasing oil production if they're just going to maintain high prices.
Clayton: You spend a lot of time on your TikTok channel and other social media trying to combat all the misinformation about oil and gas and why prices are the way they are and whatnot. Do you feel like your message is getting to the right ears?
Randolph: I think it gets to the people who will listen. Some people are just so dug in to their political beliefs that it does not matter what you say. But people who are more independent, like myself, I'm an independent. I'm very open minded. I'll listen to anybody on any of their beliefs and take that in.
But the message does get through to a lot of people. But it is also fought very stridently by those that are just dug into their political beliefs. And I get a lot of pushback from both sides of the aisle because I try to look at things logically, but sometimes that seems to support one side of the aisle, and sometimes that seems to be in support of the other, but it's really just in support of the truth.
