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Former Shell Oil President John Hofmeister on the president’s energy tour and whether he is pro pipeline.
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Now let's get to the energy story because President Obama he's in the middle of these big energy -- road show.
Yesterday he visited that solar plant in Nevada today he goes -- Ohio and Oklahoma.
Joining the company from Las Vegas is the former Shell Oil president his name is John -- -- -- frequent guest on this program.
John welcome the show.
Thank you -- the president a stop in Oklahoma is gonna promote himself as pro pipeline easy legit for him to say I approved this part of the pipeline so I am -- pro pipeline legit.
Well this -- is the president he can say whatever he wants to say.
But the question is whether he did -- anything to make it happen.
If he can help the Army Corps of Engineers speed up the permitting process more power to -- But the real issue is that I heard you said earlier.
Is that this is not new oil this is oil that has been sitting there needing pipelines support to get it to refineries on the Gulf Coast.
When it comes to new oil.
More oil extra oil for a country that needs it.
We're wears his decision on the Keystone Pipeline from Alberta to the United States he -- -- it be said no.
Net that's that's a big issue it is something else he's been saying frequent and that is that America has just 2% of the world's proven results.
Now is that accurate.
It infuriates me because he is so misleading the American people.
It is accurate in that it is a reflection.
Of a very narrowly defined type of oil called proven reserve.
That the Securities and Exchange Commission.
Demands oil companies report.
What he leaves out is probable oil reserves and possible oil reserves.
Which is the bulk of all the oil in this country the 2% number means that oil is in the ground with a well already drilled.
With pipe surrounding it ready to produce that's the 2% number.
He's forgetting him and not making mention the trillion barrels of oil locked up in Colorado that nobody can touch commercially.
Hundreds of billions of barrels of oil on the outer continental shelf and on federal land that nobody can touch because the government says no.
He's not counting that oil start the United States has more oil than Saudi Arabia why doesn't say that so -- go produces.
He's so he also says there are more drilling rigs in operation in America today and I think that at any time in the past several years is that accurate.
Yes it is and these are rigs that are on private land.
For which the federal government has no ability to say you can't go there these are private landowners.
Who commit their mineral rights to exploitation.
By natural gas or oil companies.
And fortunately for Americans.
The engine of the industry has been a genius and convincing landowners and making them quite wealthy as a matter of fact.
As state -- that the land the mineral rights and State's grant the permits and yes those number of drills are up.
And and thank goodness they are.
But the federal government has had nothing to do what that.
In fact that grant permits permits on federal Lander down 40% from the Gulf of Mexico which depends upon federal permits is down some 20% in production.
Since the moratorium so everything that his administration has touched has gotten worse and that's why Americans are paying through the nose job for gasoline price.
I've -- can you tell me into I've got very limited time can you tell me in twenty seconds why the price of crude oil has stabilized around a 104 to a 106 dollars a barrel but gasoline is still going straight up.
-- What it takes some time to get through the system.
And we are locked in with.
Oil they can't move from the militant middle west to the East Coast the East Coast refineries support -- refineries on the east -- shutting down.
So there's a difference in the availability gasoline supply vs.
Crude oil supply.
Actually that was less than twenty seconds my congratulates one -- Joan -- -- You're in Las Vegas don't gamble away those big oil company profits police -- -- -- everybody from Shell Oil formally Shell Oil thanks John.
