right now in oil, definitive is paul sankey. eutsche bank far will -- fargo, they used to be -- you read on the global supply of demand of oil. we are glad he can join us this morning. paul, with the gyrations we see in the midwest of the united states and texas permian basin, could we get out of the assumption of range-bound oil? >> these are not gyrations. the situation to me is reminiscent to katrina where, if you recall, on the monday of the katrina, there was an attitude this has not been that big of a deal. over the course of the following week, it suddenly emerged as a horrendous disaster. so people don't realize how bad the situation is. you cap basically full-scale blackouts in mexico but also had the biggest outage in the history of u.s. oil and gas. we have never seen a loss of the scale at a time when [indiscernible] we think you've lost about 3 million bales per day of oil, and we are down at least 3 million barrels refining. all of these in the refining basin about 16 million barrels per day. so gyrations, you have

paul sankey identified that yesterday.ly, in "the washington post" from the baker institute in rice university, the problem that is texas. can washington help or is washington removed from the stay battle of this crisis? emily: washington is helping. a couple of days ago, president biden did approve emergency funds to go to texas and help individuals cut in the winter storm. they don't have heat or power or water. far colder temperatures than texans are used to. fema has also announced they will be sending aid down to texas. the federal government has mobilized to help out. as far as further issues come as far as what went wrong and how to fix that, we will be seeing that play out i think in the coming weeks and months. lisa: we have seen the politicization of a number of development in terms of what peter politicians view, sublime and the emphasis on green technologies like wind turbines for some of the disruptions. others excited ethic to do with it, but fortifying some of the oil lines and taking other measures. can you

. >> thank you >>> tim, i'll go to you, do you remember when paul sankey was on and he put out another trade -- >> [ inaudible ] trade. >> short tesla, long exxon, something like that? >> we kind of goaded him into that one paul is a good sport and pointing really just out i think he was not necessarily looking to get out there and opine on apple. he was looking to talk about the energy sector and where there was some really compelling arguments in terms of the macro and supply side but also where a lot of companies were being run much more for the equity investor than they have been ever look, i love the story on banks, though i want to go there also because i know we're going to talk energy later in the show and what julien is talking about as a multi quarterly rating, look at where citibank is relative to the prepandemic level and where their business is now, look at the regulatory pressure that's off them or at least the fear of in terms of what we got on stress tests, ability of the banks to go back to buying back stock to be more aggressive with their balance sheet and a yield cu

trade done today at the 9,000 cap, and jon, i want to put that in perspective and i want to steal paul sankey's research data. the price of electricity is traded at the equivalent price of $15,000 for a barrel of oil which would be jon, are you ready? $850 roughly for a gallon of gasoline. that is what some electricity is still trading for in texas >> that is the equivalent of $1,000 for a bundle of firewood for what it does. i don't know. but, brian, my structural question is here, that i have been reading all sorts of stuff how this is about texas' independent streak that got us into this situation and the power grid being cut off from other areas. are there structural changes that you get the sense that people that you are talking to that are likely tom come out o this lord willing that we get through this >> i mean, the answer is probably going to bleed into power lunch, but i will do the best i can. they had this problem in 1989, and they had a big report in 1990 saying that we have to solve the winter problem and had nit 2011 and a big report saying that we have to solve the winter proble

higher and it's taking energy with it >> some might argue that esg is actually helping our friend paul sankeynkey research, the harder you make it for drillers to drill, the harder it is to get oil out of the ground, the higher the price goes. >> yeah, i was just going to point out the great irony in biden's approach to ev and energy policy is great for oil prices so don't forget that, folks. and i think the dynamic there, also when you layer in opec, i tell you what, every time you think they're about to imemploimplode, and i'm talking opec and opec plus, which includes russia, that's been the dynamic to watch between the saudis and the russians they came away in the last quarter with more solidarity than we've seen in a long time, and i think in the short run, look, the biggest problem for commodities is higher commodity prices that brings out a lot more supply, and that's in every underlying commodity but for now it's $63 brent this is almost the sweet spot, and i think therefore we get to 75. >> one name in the energy space saw a lot of bullish options mike, what'd you see >> yeah, so we'

this comes from my friend paul sankey at sankey research.ity. it's the equivalent of paying $15,300 for a barrel of oil which would be roughly equivalent to $800 for a gallon of gasoline. at the local circle c or citgo or whatever. that's what's happened in the electricity market $800 for a gallon of gas and some people may be paying that for a couple hours of electricity at their homes if we're on some of these types of pay for what you got services, andrew >> brian, can you help us with this, overlaying ing all of th seems to be -- possibly, maybe falls along political lines but there's a debate taking place in the media and elsewhere about the idea of renewables, wind turbines, versus natural gas, versus nuclear that the wind turbines don't work in frozen weather you have ercot saying that actually is true there's a lot of chatter and social media about this on different sides. it does seem to have a political overturn to it but just tell us the facts >> are you saying that people on twitter might get political about -- i'm shocked, andre