You're watching...
Citizens for Affordable Energy Founder John Hofmeister weighs in on the Strait of Hormuz conflict and the potential for disruption of supplies.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
Us through that narrow strait what to make of all of this former shell -- to John hospitalized or to.
He's also founder citizens for affordable energy.
John welcome.
Kim we handle right now any disruption that might that might a cart to supplies coming out of that part of the world.
Well I think it would depend upon the nature of the disruption.
If it's words and yet we can handle words no problem.
If it starts to be harassing actions like fast boats.
Zooming in -- up close to super tankers supertanker captains are gonna get a little worried about that probably call the navy.
If it's something more serious if for example they want to shut down the straight.
All they have to do is sink a few cargo ships.
And suddenly you've got that straight that's impossible that's -- -- the the Suez Canal back in the 1950s.
So that depends what the actions might be they -- get more serious than that in turn it into a radioactive.
Straight that wouldn't be very comfortable for anybody.
But this is a war of words right now and as long as it's a war of words you get a little bit of geopolitical tension.
But that just says why we need more of a domestic.
Energy supply.
So were less worried about what happens in the Strait of Hormuz.
Do you will -- on that note do you think this forces the hand of the White House it has.
According you know according to -- and you can debate -- sixty days to make a decision about the keystone XL pipeline.
-- it forced the hand that Democrats who might not until now had been in favor.
Of making drilling more easy in this country do you think maybe we do get some sort energy policy after forty some odd years.
I think what will really drive the White House is ultimately the crude oil price.
I don't think they're too worried about a hundred dollars.
110 dollars.
If we get up to a 14050.
Dollars.
Then they're gonna be scared to two.
-- that they could lose the election.
That would worry them a lot.
But that also could -- economic growth higher oil prices also depresses economic growth so there really on tender hooks here I think.
With regard to the keystone.
My prediction is no decision in sixty days.
I think there will be a constitutional test.
Of whether congress can tell the administration.
When they have to make a decision on a regulatory matter before that will be a decision.
I don't think the White House wants to cut off.
Environmental.
Contributions to the campaign.
Nor do they want to alienate labor by by rejecting the pipeline so I see a stalemate here.
Probably ending up in the courts well through the next election.
One last -- -- gets to what -- burning question is today do you think -- that oil prices one year from now will be higher or lower.
Higher how much the world shrinks into some kind of an economic.
Negative growth all I think will be in the 13040.
Dollar range.
By this time next year.
Unless the world economy softens from there so that we could be you know back below a hundred dollars but but the supply demand relationship is very tight.
Worldwide.
And there aren't a lot of new sources of oil coming online in the next several years.
And -- well said John it was great to talk -- happy new year John hop.
