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Former Shell Oil president John Hofmeister argues Washington's politics and lack of leadership only hurts the consumer.
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-- -- Julie now with -- 20% or thereabouts drop in the oil price this year not only saves us -- -- at the pump but it also may have another effect.
It might make it easier for the United States and Europe to begin an embargo against Iranian oil.
On the first of July there's the price today 7866.
And John -- Meister former shell.
President founder of citizens for affordable energy joins us from DC are we more flexible now in terms of how we attack the situation in Iran because prices aren't -- time.
But the good news is from that standpoint.
That the overall demand for oil has declined significantly.
Over the last two or three months or bad news of course is that the reflection of a very sour economy.
Globally and that's not good in terms of economic growth.
But it is a propitious moment if you're going to put a ban on Iran now it's a good time to do it yells.
-- would have an effect I guess is the -- to get to prices in the second in your outlook but we'll have a a bigger effect because the sanctions we'll have more teeth because we can say aren't fine.
Whenever you wanna do there and Iran and a little bit of a bump up and -- -- to kill us this time around.
Well I don't think we'll see any reflection in the oil price come July 1 cut because traders already have factored in -- the pending -- And and we're not seeing any rise in the oil price as a result of that right so.
And -- below eighty dollars as things stand right now and going down here we should point out gradually as we get in the next fourth of July.
His next -- up with that let's talk about prices and last time we -- Or -- -- you -- we discuss the fact that defied all gasoline that you've been talking about is obviously not gonna come to fruition.
And I know when you made those comments -- you to make him for a couple years you always said I hope I'm wrong and anger and you're going to be.
-- wrong what now what are you -- obviously been surprised by the demand equation in the economic growth outlook.
All of my five dollar projections were based upon an assumption of not less than 3% economic growth.
So in the in the event that we would -- that we would achieve new higher growth we'll see the price go right back up because we haven't cured the underlying problem of inadequate domestic production that's the thing but for now it's a break for consumers that's the thing because what you're saying that I know -- are also pushing.
And I don't analysts put words in your mouth to say you were using the prediction final -- -- to say hey we need to drill more.
But your argued that might not be strong now in other words when we are -- to -- five dollars guys you better drill more people say -- okay.
Now let's say why John what -- we need to it's not as -- as applause well.
It's only going to be worse the next time once we resume economic growth and I'm sure we will at some point we will see an acceleration in the rate of crude oil price increase because the demand from China continues to grow given the new car sales over there.
And as the whole world would recover.
We would see such should -- on imports that we'd see escalation like we haven't seen before so now is the time right we actually had some political leadership in this country.
That was the time to really put an energy plan a demotion.
Even though prices may be soft at the moment what you say they're gonna get very hard and high in the future you see what I'm saying that your your your arguments can be delayed most likely thank you think -- -- Malaysia because we -- leadership that's the problem the problem is lack of leadership but has been.
For most of the last three -- four decades.
When the politicians.
Fail to lead.
Who suffers consumers suffer so we're gonna go back to a period of consumer suffering for the failure of political leadership.
To take the bull by the horns and really guide us to a sound energy policy in the future John Hoffman.
