Tim Stewart

They're lagging far behind us.

And so what you have is this scenario where crude is being swapped, like you say.

But I think a situation like this will have a generational change in how crude is produced, how it gets to market and what it is turned into.

And we've seen that here in the United States with the Venezuelan scenario where we're now taking in a half a million barrels a day.

And that crude is being processed on the Gulf refineries, but it's being turned into refined product that is making its way to both the U.S.

market.

Central and South America, and now European markets.

That's changing, and the refining industry itself is starting to realize that they won.

They now have a global market, whereas it was more North American.

But equally important, I think Wall Street is realizing that fossil energy is going to be a long-term investment.

That's why you saw the Indians invest in a massive new refinery for light sweet crude in Texas in Brownsville about a month and a half ago.

It's really interesting as a generational change is underway.

When you say, have I seen it all?

I haven't seen this.

I didn't anticipate OPEC starting to crack last week.

I didn't anticipate UAE with a million and a half barrel extra capacity saying we're going to walk away from those OPEC quotas.

It's going to be really interesting.

The problem is the physics are always the same, which is you have one barrel of oil, which turns into 42 gallons of something, be that gasoline or diesel or jet fuel.

And right now the math is really difficult for and the physics is difficult for what that is turned into and where it goes.

Again, the final challenge is we're looking at a 450 million barrel global shortfall right now.