mr. bordoff do you want to jump in here quick? >> i would say that i agree in part, i think there are a few mitigating factors. we shouldn't forget the significant public health benefits that come from reducing co2 emissions. cities will be moving away from diesel. the industry has known about these rules for many years. some have taken further steps than others to prepare including many u.s. refiners and u.s. shippers. i think injecting and that that's a level of uncertainty could hurt the companies that have taken steps to prepare and inject an annulment of uncertainty where people are getting ready and maybe they should wait or force the transition period. as rusty said, it if -- if it is not the case, they could issue waivers and the lack of ability of low sulfur fuels. there could be pipelines built in the permian and there could be a period of adjustment. these often resolve themselves in -- response to price signals. >> hopefully. we have done a full round and we are starting around 2. we can interrupt and go to you, thank

mr. bordoff, welcome. >> my apologies. mr. cantwell, members of the committee, thank you for letting me appear before you today. i was last here in april 2016 to testify about low oil prices at a time when prices had collapsed from about $115 a barrel in mid-2014 to the high 20s in early 2016 and they've since surged around to about $80. let me explain the factors that have delivered those swings and offer three observations about the policy implications of them. key factors in the 2014 oil price collapse included surging u.s. shale production, which you've heard about, and the decision by opec countries led by saudi arabia not to cut production in november 2014, widely condemned by many at the time as a war on shale. in 2016, after oil prices had fallen below 30 there are$30 a , along with non-opec countries including russia propped up prices. oil prices were covered in the mid-250s to 2017 and they began to surge for many reasons. one, opec worked and brought down excess inventories. they have been excessivily strong over th

mr. jason bordoff is the founding director for the center on global energy policy at columbia university. we welcome each of you to the committee this morning. we'd ask that you try to keep your comments to about five minutes. your full statements will be incorporated as part of the record, but as you can see, we've got a great deal of interest in the committee this morning and the words that you have to share with us. so, mr. sadamori, if you would like to begin. thank you. >> thank you, chairman. chairman murkowski, ranking member cantwell and distinguished members of the committee, thank you for the opportunity to present the international energy agency's view on the factorses affecting the global oil prices. let me start by conveying his best regards from dr -- [inaudible] the iae executive director, to members of the committee. for more than 40 years since the iea's establishment, the united states has played a critical leadership role in the iea. thanks to the shale revolution, u.s. is leading global supply growth both in oil and gas, making enormous contributions to supply security