You're watching...
Former Shell Oil Company President John Hofmeister says that more demand for oil and a decreasing global supply are causing gas prices to rise.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
Whenever the top of the stack you know gasoline prices are need to tell you they've been marching higher for -- a little over two months now since late January.
So how high will they go and is -- some magic number when people will dramatically change their behavior cut back.
-- -- know the prices to fall as demand falls it used to be that that would happen but will happen this time.
Joining me now former president and CEO shell oil company John -- -- and and John.
You've been very accurate about your predictions on where these prices are going we're going through this five restarted I think of the week the last week in January.
Been on a march up ever -- how high are we going.
Well it really depends upon how strong the global economy is as well as the US economy.
And if we continue to see growth in the economy we will continue to see.
It increases in the it crude oil price which will lead to increases in the gasoline price.
There is a point -- -- right you're there is a point at which consumers will say enough already I can't take it anymore.
And they will start pulling back on their purchases.
In 2008 it was three dollars and 87 cents when we could see the decline in demand ratcheting up.
I don't know what it will be this time but I suspect it will be something beyond that because we're already passed that the real problem though is much more serious.
Don't know that the thing I also -- are -- looking at the charge for -- the start of the program today and -- memory serves me that it was a much sharper spike up Beck did 23 years ago.
This time it it's been on a steady march since the last week -- January.
-- -- -- Two since here for since they're each week until we're up to its just under four dollars a gallon.
So what doesn't seem like it's crashing down on -- prices even though we're noticing that won't gas up our cards it's been more steady.
That's because that's the seriousness that I'm speaking to.
Tom -- the reality is China's demand and India's demand is outpacing global supply.
We don't really have any kind of security.
Blanket in the Middle East anymore because they're producing.
Flat out those countries that are not enough people so there's no.
Mechanism there's no shock absorber in the system there's just steady relentless increase in some in demand.
Against a slower.
Increase in supply and -- I'm afraid that because the administration's policies.
Have been so anti oil anti.
Hydrocarbon.
That we're gonna be stuck with this problem for years to come.
They have held back any kind of an energy plan that would deal with more domestic natural resources and that's the --
