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Gulf CEO: XL Pipeline Would Cut $0.20 of Gallon of Gas

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    Gulf Oil CEO Joe Petrowski on the importance of the Keystone Pipeline.

  • Duration 4:36
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In our power -- segment today gas prices entering the debate over the government's rejection of the Keystone Pipeline with a national average price of regular now -- 338 -- gallon Democrats at a hearing on capital though argued the pipeline.

We'll have no effect on what we pay at the pump are they right gulf oil president CEO -- trustee.

Now so.

Their argument and I know you've heard it before is that well oil is fungible there's there's this big pot of it somewhere and I don't know Saudi -- wherever they all goes into that plot and it doesn't matter whether you're the oil comes through the pipeline in the gulf or whether goes to China.

Are they right -- wrong.

-- -- they're extremely wrong I realize the federal learning curve is more shallow than most of -- -- They're spending six billion dollars of private interest.

Republicans spending six billion dollars.

They're gonna get a return on that pipeline that means there's going to be revenue from that pipeline which agrees there are cost that are going to come -- That pipeline will will probably bring down long term.

If we get the type of production in the northern -- that we expect.

Pointed to thirty cents.

A gallon.

-- for those by the -- who are familiar with what you do Joseph you're on that you're on the retail side of the gas business so you know.

How prices are -- how they come about the prices that we pay at the pump the fact is is that there's no reason why eight.

Prices differ from state to state to state.

So there obviously there's the oil and gasoline are not fungible there are differences in price.

And the oil bring in the oil to the United States probably would bring the price of the pump down right.

Well it will increase -- -- is I think while lot of those on the left environmentalists are against the pipe has nothing to do with the sands of Nebraska we need to study the pipe we have 28 million miles of pipeline in the United States.

We had 30000 miles every year and it's a technology that's existed since 200 AD.

So I don't I really don't think we need to study it a lot more.

They're against it because it will increase production in the domestic.

In Canada -- in the northern here.

-- they don't wanna see that production increase.

And prices are always made on the margin -- to three million barrel.

Production increase could have a significant.

Influence on prices to the downside the end that the arguments on the economics here have all been.

Crazy there were arguing whether it's 101000 or 40000 jobs.

I would build the pipeline if it was one person with a -- A because very simply the lower energy prices we have in the United States.

The more that money will go towards towards consumer spending stimulating the economy.

And and making -- a lot more productive especially.

On the manufacturing side for energy intensive industries.

If we have an and the other argument is made as of -- -- exported.

You -- could you imagine the Brazilians.

Today are hearing about a capital improvement in their country and some months -- well let's let's not add to coffee production because.

We may not all -- -- domestically we met actually exported.

They're probably laughing and saying that Americans forgot about how capitalism work.

There are laughing -- Fidel Castro by the way is there began to pump oil out of out of his surrounding violent but bottom -- I think you hit upon the reason they're against the pipeline.

-- there and they're trying to cover this up is because they hate fossil fuels they -- and fossil fuels even if that puts us all in the dark.

-- absolutely I mean -- with.

Pleased to see.

President Obama last night.

Talk about offshore.

Drilling yen and natural gas -- what we've been waiting for a long while.

It's only Edison.

-- -- moment.

I guess so we should take that is.

As good news but.

-- I think we in the industry -- and a lot wait and see the actions rather than rhetoric and we really need to build this.

But what -- final question we're running out time but when our consumers actually gonna start paying.

The price for this decision the president is made in the pipeline.

Allowed.

You know I I think -- the pipeline without an increase in in in domestic production.

There's little doubt that by the by the summer we could be up around four dollars again -- -- -- gulf oil good to see it Joseph thanks very much appreciate it.

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