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John Felmy, American Petroleum Institute chief economist, on the record-high gas prices in California.
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I tell us more about gas prices in California and the rest of the country -- frankly we're joined now by John dummy chief economist at the American Petroleum Institute.
John thanks for being with us now I know you're surprised actually that California's have an all these issues -- come.
Well I think if you see how tight the regulations are in California.
It says that even small supply and demand changes can cause big market impacts and that's what we're seeing right now -- a loss of supply and an increase in demand because.
Today is a holiday for most folks and -- work for the federal government.
But they are as Adam Shapiro just reported instituting all these -- rules and -- and and it it sounds like it's making everything just more complicated and expensive and it needs to be.
Well there's no question this is the most expensive fuel in the country it's the second highest taxes.
And all the other costs of doing business in California make it very very difficult to meet consumer demands.
Yet that's -- sure I know he also blame the media for a little bit of that over hyped hot.
Well there have been some media reports that led to what I would characterize -- on necessary buying and that just -- the market a little more.
But it's hard to say what what is actually going on in terms of what drivers need to do now okay let's talk big picture now.
What I mean we don't have comprehensive energy policy here in this country.
I guess everyone is hoping that whoever the next president is he institute's one but until then where gas prices going.
Well right now it's really a function of what happens with worldwide crude prices in general outside -- California.
We've seen crude prices go up gasoline followed crude prices came down gasoline is following through that.
So what we need to do is recognize that 62% of our energy comes from oil and gas.
And we need to continue to produce that so why is energy policies one that really is all of the above.
And focus is not just on the 1% or so that is been called green.
It and you think that's actually gonna happen so -- -- -- we've been talking about.
How this nation first national security needs in energy plan and we haven't seen the likes of one.
In -- viewers might lifetime probably.
Well there's no question we've been struggling this for a very long time since the days of President Nixon that and it's time to step back and say you know we really do need to get serious about this because it's not getting any better.
And we need to make energy policy that's based on facts and not wishful thinking and unfortunately that's too often what is done.
And a few seconds left as the Middle East worry you though the fact that we just have no control.
I'm an economist song worried about everything but I have the ability be self sufficient in this country to be energy secure if we produce our own resources.
Yet -- guided -- some meat -- -- with us the American Petroleum Institute thanks there.
Our rate coming -- Which baby boomers are more worried.
