24 billion barrels and another 100 trillion cubic feet in alaska but when of the significant part is the eastern gulf of mexico where we have had to send operations and that will be a nice boost for us. but we don't know about the resources of the atlantic especially because we have not back there in decades to do the studies to figure out what might be there. back in 1985 we thought we had 9 million barrels now we have five times 45 billion at least because technology keeps evolving as the frontier becomes deeper and more sophisticated we can bring more to the market so we think it is a positive development that we don't know ultimately what we can reach three but we're happy to get a head start.

. . market. the entire west coast. they have been exploring and developing since the 19th century. they have operations but off the coast as it is. they are forgoing quite a bit. it also leave a part of the east and gulf of florida. there is a lot of natural gas right there. we are not one to be able to go for some of that. we are happy for that. there is still a lot more out there. this is a great step forward.

that segment in the gulf -- congress has to go back and say -- there is a little piece beyond 125 miles that is under a moratorium until 2022. he cannot open it by himself. he has to take that 10-year limit off. that is a different segment. it is something you need to work with congress to do. host: what about the atlantic? can the president do that on his own? guest: yes. it will take some time. they will go back and do some testing.

it will take a while before we see the first pharaoh. host: how long? guest: virginia will probably be the first state to move forward. they have been very anxious to get going. we will start looking sooner than later in the western atlantic. the further you get of short -- that is another point. you are taking some of the resources off the table a third of the minimum. it gets more expensive. we will have to see.

it will not be immediate. you start getting the testing done and planning of people. it takes time. it is a positive development. thousands of new jobs and millions in revenue that we did not have. we will improve paying the deficit. it will be a win. >> this will be domestic production. how much domestic offshore production is there now? guest: about a third is produced in the gulf of mexico oil and gas. we have three or 4000 rigs. it is a big operation. we have been doing it for a very long time. we are really good at it. according to the middle management service, 11000 of 1%

are from the offshore operation. this is much better than the natural seepage from the ocean. they can do it with this technology. 17 major permit. 90 sets of regulations. there are 400 different safety devices. that have turned off valves. they can be shut off automatically. if a whole rig capsized on you, you'd have a pipe. it is hard to have bills. it is hard to have a sell-off. it is almost impossible. host: does this lead to energy

independence in the united states? guest: it does not. it gives us more energy security and other options. i think we have to look more broadly when we look at energy. not just offshore, but we also have a partner with canada. it brings more product to the market. the of the biggest provider. the middle east give us 70%. domestic we are producing about 40%. if we were able to get everything, we could add another 17%. weekend up by 30. it is possible. they can go hundreds of miles offshore.

3 miles beneath that. it is a cruising altitude. pretty phenomenal what they can do. natural gas, even a few years ago, if we did not know we were going to have the natural gas we have -- now we have the least over a 100 years' supply. with new technology to be able to act as natural gas in the dakotas, pa., n.y.. that is opening of a whole new future for us. it is very positive. we will be much better off than before. host: what is the petroleum institute? guest: it is a trade organization. we have been in existence since 1990. it is a -- 1919.

it is a consequence of the first world onwar. and lots of ever business today is that program coming up with practices. what is the best way to do each procedure? we continue to do that all of the time. host: s take some calls, the first from new orleans. caller: good morning. i am an electrician. ships come in from the middle east. years ago, they wanted to build a natural gas platform off the coast of louisiana. they were having a dispute

whether to do and open loop or a closed loop system. can you explain the difference in that? guest: i do not know that answer. in terms of importing natural gas, a few years ago, we have much more natural gas than in the united states makes its -- both developments not as likely for as much as they were a few years ago. i am not familiar with opening close links. host: florida, independent. caller: i worked on the texaco account in my 22 years of advertising. i have some statements to make for you. where are they going to be refined?

you have to modify various coastal seaports with the same result you had in new orleans, with the destruction for hurricanes. your eastern portion on the map , you got those grants without paying any royalties. you got that for free. host: do you think that is a mistake? caller: i think it was a contrived mistake. these people have so much power. they have this little mistake written into contracts so they pay no royalties on that. guest: i have to correct your statement about the royalties.

all of the contracts that were signed, they even -- they either have a prize or barbara threshold. every contract -- borrower threshold. or price threshold. we have to follow through with those contracts. as a consequence, we have more oil in the market than we would have had before. we have the capacity in the united states, we have a lot of options. we have refineries in one area. we have been expanding our refineries. even though we have here, we have more refining capacity. we will find about 80% or more

of our product. it is mostly into ever harbors on the east coast. that is not a problem for the industry or a hindrance moving host: forwa4. -- forward. the coastal states get to share 37.5% of the royalties, the leasing, all of the money that comes in. this is a fantastic opportunity for them. a lot of money is shared with coastal areas. monday market was that, some are bringing in $22 million in revenue to the government. there is a lot of potential moving forward for everybody. host: michigan, democrats line.

caller: i am all for independent resources. however we know some much more about current geography rather than oceanography. i have a couple of short questions. wouldn't drilling on land be less invasive on the environment? guest: we are drilling on land in doing both. we have been drilling for over 150 years. many resources have been depleted. now that we have the technology to do these operations and get to areas that we never thought we could, it is opening up a new horizon for us.

the best offer is in the offshore operations. it is sophisticated technology with some any safety devices and even these rates are finding out surprising things about them. that actually talk to fish. we will be discovering more and more. we will bounce sound waves to determine where some of these are. it has become very sophisticated. that is why we are moving from land tuesday. we are going back to the land and looking at new technology there like accessing oil. it is getting harder and more

expensive. we have risen to that challenge and we continue to make that investment. host: our next call comes from @@@@%7a::zz ure has already been

proven. bigger wind turbines are more efficient and more cost- effective. it is proven in places like germany. guest: i think we will move to other sources of energy. we are already doing that. many natural gas companies are the biggest investors. we are starting from such a minute amount right now. according to the department of energy, it may provide 3% in the next 20 years or so. even with an increase in ethanol, it will only displace some of the oil we need in our vehicles. until there is a breakthrough, we have an opportunity to produce more than we have been

as the transition. natural gas is. to be a real part of our energy future. we are doing -- is going to be a real part of our energy future. i think our beaches are priceless. we have operations on beaches of around the world. we had thousands of re with katrina. back-to-back storms of the century. the significant things. machines on the ocean, that was it. we can go miles offshore. we can put the brakes of sites with subsequent operations. we can do things.

in a way that really respect the environment, to the point -- especially with natural gas. it is not. to be a concern to a beach. host: does mexico drill offshore? guest: absolutely. we get out to the continental shelf. i think it is internationally recognized where your shelf goes. they have leases from a variety of countries around the world. [unintelligible] american companies are not in on that process. we really think we have some of

the best and sophisticated regulatory and technology to bring to these operations. it is proven and we would love to go for it. and the majority of floridians like to see this development. host: a tear from anchorage, alaska. caller: >> in looking at the map you were just showing, the drilling is going to go ahead up on the north sea. famine areas were left untouched which is excellent. a little further down just above bristol bay there are some key areas.

not that one. anywhere down further south at up north. bring your pen down. over. further down. not in the bristol bay area. with all of the hundreds of thousands of current oil leases that the oil companies currently have, and they are represented by the consortium which is a group of his douceur is that it together like shell -- a group of producers that get together like shell, how come you're not going ahead to develop the current situation? out of all the oil pumped out of alaska, a very small percentage is used by the united states.

most of it is sold overseas. host: what do you do in anchorage? caller: i used to work on platforms. right now i work for a cruise company. guest: i think there is a lot of misunderstanding about the leases. part of it is how they are characterized. it depends on how long it will take you to develop it. you have to pay a fee on it. they did not come with a mark on the methane here is where you are one to find the resources. he may have one out of many that is bringing you the resources that you were hoping for. many of these do not pan out. , and economically, or there is a problem moving forward.

you do not know. you have a little piece on the map on the ocean. they have good ideas where this may be. once your lease may be that, you have to turn it back over to the government. no one is in violation, because that would be irresponsible to their company to do such a thing to the shareholders. they are moving forward. a reason that misunderstanding arose it that at least it is not turned active unless you are producing something. it is not counted as active. you are doing the analysis and doing all of these things. it just is not showing up in the efforts. host: how many barrels of oil does the united states use every day? guest: about 20 million barrels.

now this 19.5 billion debt barrels a day. -- million barrels a day. host: how much as a push for smaller cars? guest: it will take a while for the vehicle fleet to turn over. people have gone out to buy a new car. many are going to buy more fuel- efficient vehicles. that is part of it. we will get more fuel efficiency moving forward. our industry is all for efficiency. i think it is a good idea. we are really happy to conserve as much as began for america. host:jesse houston. caller: i like to thank you for pointing out that there is more oil lost in certain activities.

it will leak out anyway. i want to ask about the north sea, there are platforms, several platforms and then pipes running through the ocean where they collect the oil. and then they collected right off the platform. .

have a right to drill? and how far out is china able to drill? is the international boundary at 12 or 20 miles and anything beyond that china can drill? host: we got the point. thanks. guest: i think it has to do with how far out geologically the continental shelf goes. so that can vary along the coast. foreign companies can't just come in and drill in our waters, but they can come in with contracts, they can partner with us. and we do have partners in the gulf of mexico. it is hard for us to think of these companies as far, but bp and shell, for example, are european.

we know china is out there partnering all over the world, trying to bring new resources and have those developed for their countries. it is an international market. and it is going to be even more so moving forward, i think. host: marty, a democrat, gainesville, florida. caller: i just had a couple of quick questions for your guests. first of all, when we look at the maps, on the eastern coast of florida, the area where drilling is going to be permissible, looked a lot closer than the 125 miles off the west coast of florida. i'm wondering, is that just a graphics problem or if the drilling on the east coast will be closer to florida's coastline that is what is going to be done in the gulf of mexico? the second question i had is, if a significant spill does occur, will the oil companies be

responsible for the cleanup or will the taxpayers? guest: the oil companies absolutely. the map just maybe a graphical -- it may be just the way it is drawn because the boundary is 125 miles on the east coast of florida. host: acting marty was referring to this a new patch that was open -- guest: it used to be wider, it went out to 235 miles at one point. started 125 and went to the bottom of the map, to 235, so they carved the extra sentiment out into the gulf adjacent to operations already happening. but it still leaves florida with an entire 125 border. you are right about the shift. host: is this also won 25 over here in the gulf? guest: i believe so. >> this is 125. guest: supposed to be 125, and

cut off at alabama, i think, louisiana. guest: this map, by the way, it is from "the new york times." eunice, louisiana. go ahead. caller: i have been in the energy business since 1968. guest: wow. caller: started off in the 1970's's -- to address concerns about skills and what have you in the gulf of mexico and the federal register. in 1970 oc -- it was a quarter inch thick and regulations and today we have 14 volumes about one-inch thick. to address the concerns, from this guy in indiana, saying for oil spills and what have you -- we had katrina, we had ivan, gustave, all of these hurricanes coming through the gulf with very minimal amount of skill. wheat did not hear that in the

national media. we were very concerned about that and we found out that all of our safety systems adequately worked and worked well. guest: you guys did a terrific job, you really did, in very difficult circumstances. personally and professionally. each co -- host: allen, clearwater, florida. caller: i want to talk about refineries. i have a question and suggestion. the question is -- first of all, i remember there is a program, i did not know how long ago, maybe a year or so, talking about in order to lower the prices we needed more refineries. and the gas companies just cannot build a new refineries. and because of this, we are not going to see any difference at the pump. we are just giving more and more assets to the oil companies. guest: i don't know where that idea started. but it is very prevalent.