You're watching...
Manhattan Institute senior fellow Robert Bryce on lower gas demand and the EPA’s push for an ethanol gas blend.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
Consumer prices falling last month for the first time in two years pushed lower by gasoline prices.
But are low gas prices the worst thing that could happen right now to this country joining me now has.
Rice senior fellow at the Manhattan institute an -- let me explain Robert reported -- that.
We finally have had their demand falling so dramatically in recent months really in recent years in this country.
And it's also pushed down.
Production and consumption of ethanol is well my point is if you have prices keep falling lower we just start consuming more energy period.
Well that may well be -- again but we've also seen some -- demographic and kind of structural shifts in the motor fuel market in the United States we've seen.
A gradual ageing of the population teams are driving as much and the fuel from the the motor fleet the auto fleet is getting more efficient so.
Yes gasoline demand is fairly flat.
We've also seen some call -- in the oil markets because Iran seems to be calming down the concern over -- seems becoming down.
And the other good news is domestic oil production oil and gas production is way out.
Do you think -- stays where it is do you think that in the coming months and even years and is very it impossible to predict the direction of price says.
Nevertheless that do that direction over the last demand for fuel in this country and we really changed our behavior will continue.
Well I think it if you look at the projections from the Energy Information Administration from.
IEA ExxonMobil BP they all seem do agree pretty well that US motor fuel demand and oil demand more generally.
Is going to be flatter or -- growing very slowly over the coming years all the demand is going to be an Asia and Africa.
And the developing world.
But what is a concern and one that I think is is -- -- motorists in the US should be worried about is the push by the ethanol lobby.
To increase the amount of ethanol that's being forced into the gasoline pool and this is very bad news for consumers and the move is being fought by a broad coalition.
Of industries food makers boat makers carmakers.
Are all trying to prevent the EPA from allowing this move toward.
A 15% ethanol blended gasoline.
Where we should point out that right now is that what they wanted the regulations that govern -- governs ethanol mixed and the gasoline as a 10% as a not 10% of -- -- in this country.
And that is that really what's gonna happen -- -- -- because.
Again production demand for ethanol is pull back production will fall for the fur all likely this year for the first time in very long time.
And it bit sure we'll have ethanol lobby and industry cry and hard times at all woe is us.
Look at these plans that are shutting down and then they use that as left.
Courage -- Well of course but but remembered -- this is all a result of excessive subsidies and mandates given to the ethanol industry.
And what's the result of those of those mandates and subsidies the ethanol sector over -- now they have too much capacity.
They're producing too much ethanol they have too many gallons of ethanol.
Chasing too few gallons of gasoline and so what have they done they've gone to government again in in another rent seeking effort to try and force.
This is just another example of how excessive governmental intervention in the market place.
Then of -- gets yet more efforts to -- government for more intervention in the market place at the expense of consumers.
I personally like the pure gasoline -- -- in his country -- -- but it is growing but.
Economic card not compatible with a stable oil their cars don't wanna put out an island don't.
Robber is great to talk to you as always thank you so much Robert Bryce please come back very -- -- stake in.
