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Ultimately, the price of oil is set to rise significantly. You know, we think we know a little bit about the oil business. If we invest in oil stocks, it is only because they have great value at this price. We will not be able to wean the world off oil in a short time. If we have another 200 years of economic growth, distributed around the world, then all the reserves of oil, coal , natural gas, and uranium will be for nothing.
Personally, I think it is extremely unwise to deplete the world's hydrocarbon reserves as quickly as we are doing. It's truly crazy to use such a valuable resource for which we have no reliable alternative. Even at these prices, it's hard for me to imagine that demand will drop significantly. Ultimately, we will need oil, gas, and coal as chemical raw materials, not just for heating or fueling our cars.
We look at this business in the long term, evaluating the expected profits in 3, 5, 10 or 15 years compared to what we are paying now. I think the main reason for cautious consumption of hydrocarbons is that modern agriculture cannot survive without them. Obviously, you are dealing with a limited resource.
So the only thing I can promise you, or almost promise you, is that someday oil will cost a lot more. And what I'm absolutely convinced of, as we've talked about this morning, is that the dollar will depreciate over time, so the dollar price of most goods will increase. In my opinion, the United States' most valuable resource is its hydrocarbon reserves.
That's why I'm only in favor of spending other countries' oil and saving my own . We don't need energy independence, we need to preserve these reserves. Thank God that other countries have this valuable resource that they are willing to sell. On this issue, I have a diametrically opposite opinion than most people.
And, of course, I think I'm right. I consider the oil sands to be an important asset for humanity. It is obvious that a huge amount of oil is stored there. This is an important asset for humanity, you know, for centuries to come. We probably have n't bought the last asset yet. But ultimately we look at cash, at the available opportunities in both investments and business, and every now and then we make a decision to buy something, and sometimes we change our minds, and that will continue to be the case.
This has been going on for many years. This is an important industry, very beneficial for the consumer. Millions, well, hundreds of millions of consumers. Oil is a big part of the economy. Well, if you look at the very long term, I think all hydrocarbons will be used up, including all coal. Ultimately, these hydrocarbons are a huge resource for humanity, and I don't think we have a good replacement.
I do n't like to spend them too quickly. People think that all these hydrocarbons will become unnecessary and the whole world will change . I think that sooner or later we will use up every drop of hydrocarbons. We will use them as chemical raw materials. When you invest in an oil company, you know, the outcome depends largely on the price of oil.
This is an investment that depends on the price of oil. When you buy oil, you are betting on oil prices over a long period of time. People on the extremes on both sides are a little crazy. I wouldn't want all hydrocarbons banned in 3 years. That wouldn't work. I think Chevron has done a lot of good to society in all sorts of ways, and I think it continues to do so, and we're going to need a lot of hydrocarbons for a long time to come, and we're going to be very glad we have them .
I have no hesitation whatsoever about owning Chevron stock. And if we owned this whole business, I wouldn't feel uncomfortable doing it. You should be very happy that we can produce 11 million barrels a day or something like that in the United States, instead of not being able to produce anything and having to look for 11 million barrels a day somewhere else in the world to keep the American industrial machine running.
I like having large reserves of oil. So I would just leave most of the oil we have here and pay whatever price the Arabs set for themselves, and pay it willingly, while preserving our own reserves. I think this will be a very valuable material for the next 200 years. And no one else shares my view, so it doesn't bother me.
I just think they're all wrong. Not long ago, the very idea of someone extracting a barrel of oil was considered something terrifying. I mean, try living without 11 million barrels a day and see what happens tomorrow. Most people believe that it is better to have your own oil in the country than not to have it at all.
We use it in large quantities. And if we tried to switch to something else in 3 or 5 years, no one knows what would happen, but the chances of success, in my opinion , are extremely low. It's hard for me to imagine a more rewarding industry. I don't have the feeling that this is some evil, crazy place .
I wish the rest of the world was as hospitable as they are. We don't know what oil prices will be like, but we really like Occidental's position, which is why we financed them a few years ago, and at first it seemed like a terrible mistake. When the oil market completely collapsed and then things turned around, we bought a lot of common stocks.
We in the United States are fortunate to be able to extract the oil that we get from shale. And there's still plenty of oil underground, if someone can come up with another "magic trick ." That's all we needโone more magic trick. The price of oil is still extremely important from the perspective of short-term extraction economics.
There is no doubt about it. Frankly, we find some of the statements absurd, on both sides, at both extremes. Politicizing positions on something so important to energy simply plays into the hands of demagogues, fundraisers, consulting organizations, and everyone else. We will make rational decisions and we will extract oil.
We will not make any offer for control of Occidental, but we like the stock that we have and we may own more or less of it in the future, but we certainly have warrants for a significant portion of the stock at around $59, and those warrants are long-term and I'm glad we have them .
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