Mississippi is an important energy state and its importance is growing all the time, according to an energy expert featured at the Millsaps College Else School of Management’s fall forum on Sept. 25.
“We have increased our production in natural gas and crude oil, with 15 major interstate gas pipelines bringing gas into the state, and a world-class oil refinery in Pascagoula that produces 330,000 barrels a day,” said Joe Sims, a 25-year veteran of the energy industry.
Sims, a full-time consultant whose firm, Pinnacle Consulting, offers public and government affairs support and representation, spoke to students, faculty, staff and guests about “The Energy Odyssey.”
Energy was selected as the topic for the forum because of its impact on individuals – particularly its cost and consumer concerns over future shortages. The CFA Society of Mississippi was the forum sponsor.
Many consumers believe major oil companies can manipulate oil prices, but that’s not true, Sims said. The United States has access to about 5 percent of the world’s reserves, he said.
“That’s 95 percent of reserves that we have no access to,” he said. “Congress has debated for years over whether to drill in the Alaskan refuge. If we did, it would bring one to two million barrels per day into the United States market, and that would make a significant difference in the prices.”
A major oil refinery has not been constructed in the United States in 30 years, but existing refineries have added a 2.4 million unit increase in capacity each day, he said.
“Yes, we will see alternatives in the future, such as ethanol,” he said. “But at this moment, oil is indispensable, and something we use in the United States at a rate of 21 to 22 million barrels a day.”
No one can predict the prices at which oil and gas are traded each day, he said. There is speculation about funds that drive up prices, he said, but overall “the traders do a pretty good job at getting it right every day.”
The Else Forum is a regularly scheduled event that provides a platform for regional and national leaders in business to comment on topics of interest to Millsaps students and the business community. Speakers have included Jack Guynn, former president and CEO of the Federal Reserve Bank of Atlanta; Leland Speed, former executive director of the Mississippi Development Authority; and Mark W. Olson, chairman of the Public Company Accounting Oversight Board.
