WEBVTT X-TIMESTAMP-MAP=MPEGTS:900000,LOCAL:00:00:00.000 00:00:00.090 --> 00:00:03.630 Barring any further storms here you believe that the oil and gas 00:00:03.630 --> 00:00:07.260 supply chain will be back on within two weeks. The industry is 00:00:07.260 --> 00:00:11.460 very well prepared for hurricanes. But the most significant 00:00:11.460 --> 00:00:14.040 impact of course is the human toll that's taking place in 00:00:14.040 --> 00:00:16.730 Houston. We've got a lot of friends and family there so you 00:00:16.740 --> 00:00:19.310 know our hearts and prayers are with them there as we've seen on 00:00:19.320 --> 00:00:23.070 the on the news but from a financial standpoint the industry is 00:00:23.070 --> 00:00:25.170 well-prepared for hurricanes. They've gone through this several 00:00:25.170 --> 00:00:28.740 times. So as they go through their systems checks and safety 00:00:28.740 --> 00:00:32.670 checks looking at the offshore production and the refiners we 00:00:32.670 --> 00:00:35.160 think it will be about 14 days or so once the water recedes that 00:00:35.160 --> 00:00:37.260 they can get back on line and pumping and maybe not a hundred 00:00:37.260 --> 00:00:41.370 percent but certainly a large part of it in terms of domestic 00:00:41.370 --> 00:00:45.030 industry resilience. What's been the biggest change since 00:00:45.360 --> 00:00:45.840 Katrina . 00:00:46.860 --> 00:00:50.730 Well I think one of the biggest changes since Katrina is we've 00:00:50.730 --> 00:00:54.180 got more refining in the Gulf so there is a bigger impact and 00:00:54.180 --> 00:00:57.890 we're seeing that in the gasoline prices. You know that and 00:00:57.930 --> 00:01:00.780 we're starting to see some spot shortages around that'll have 00:01:00.780 --> 00:01:04.700 the impact of reducing inventory in the U.S. because of refining 00:01:04.750 --> 00:01:08.400 or off line. It'll bump up crude inventory in the U.S. But 00:01:08.400 --> 00:01:11.580 overall I think the impact is going to be reducing inventory 00:01:11.580 --> 00:01:16.320 worldwide for oil liquids. I know that your investment horizon 00:01:16.500 --> 00:01:19.530 is far longer. So we are talking to you about the short term 00:01:19.530 --> 00:01:22.980 impact having you see opportunity particularly in the energy 00:01:22.980 --> 00:01:26.190 space you describe this myopia that we have about oil at the 00:01:26.190 --> 00:01:28.860 moment and the sense that we're continually looking at 00:01:28.860 --> 00:01:31.500 inventories rather than the big picture here. Do you think 00:01:31.500 --> 00:01:34.650 we've taken it too far in terms of stretching back capacity and 00:01:34.710 --> 00:01:39.120 perhaps underestimating future demand potential. Absolutely . 00:01:39.120 --> 00:01:42.030 There's a couple of things that are happening. One is the 00:01:42.030 --> 00:01:45.900 overall supply and demand where we've seen the inventory drop 00:01:45.900 --> 00:01:49.020 since the beginning of the year. But longer term the low price 00:01:49.020 --> 00:01:53.610 of oil is is no longer incentivizing future production or 00:01:53.910 --> 00:01:58.830 investment for a few feature production. You've got two of the 00:01:58.830 --> 00:02:02.490 biggest population bases in the world China and India two point 00:02:02.490 --> 00:02:06.060 six billion people and their GDP per capita continues to rise 00:02:06.060 --> 00:02:11.080 and with it. So does the income spent on things like energy . 00:02:11.280 --> 00:02:15.090 Well we also see China developing their one One Belt One Road 00:02:15.120 --> 00:02:18.870 which is really the modern day silk road and there's going to be 00:02:18.870 --> 00:02:22.290 a lot of infrastructure spent on that. We're seeing that as the 00:02:23.130 --> 00:02:26.330 impact with copper steel continues to rise. We think that 00:02:26.340 --> 00:02:29.360 continues. We also think it's going to impact oil prices .