"Shark Tank"/ABC
- "Shark Tank" investor Kevin O'Leary says he is looking to build a $14 billion oil refinery.
- O'Leary pointed to the importance of US energy independence, calling it a top election issue.
- That comes shortly after OPEC+ announced another production cut, which is expected to raise gas prices.
Kevin O'Leary wants to lower US gas prices – and he's planning to do that by building a $14 billion oil refinery, the "Shark Tank" star said in a recent interview with Fox Business.
"We haven't built a refinery in America in decades because we can't permit it … And the task I've decided I'm going to take on is I'm going to build a refinery in America," O'Leary said on Tuesday. He briefly detailed plans to finance the refinery, estimating the costs to clock in around $14 billion.
O'Leary emphasized the importance of US energy independence, calling it a top election issue. He pointed to OPEC+, the 13-nation oil cartel that recently announced a surprise production cut of over 1 million barrels of crude a day.
"The Middle East, which produces most of the world's oil, has told every economy including ours, do not depend on us in perpetuity for your energy. If you can find your way to energy independence, you do it and in fact, we'll invest in it for you because we have to supply energy to the entire world," O'Leary said.
That cartel had repeatedly slashed its crude production over the last year, exacerbating supply shortages and sending US gas prices to a new record in 2022. The production cuts were needed to control "dysfunction" in energy markets, top OPEC-producer Saudi Arabia said, claiming that oil prices were disconnected from fundamentals.
Some observers have been concerned that the latest production cut could send prices even higher, with oil prices immediately jumping 6% in the days after the cut was first announced. OPEC could also issue more production cuts later on in the year and spur a rally in oil prices in the second half, RBC's Helima Croft said, which is likely to push prices at the pump higher, too.
Brent crude, the international benchmark, traded at $85.65 a barrel on early Wednesday. Meanwhile, the US average national gas price rose to $4.62, according to AAA.