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Former Shell CEO John Hofmeister explains his frustration with the way President Obama and Congress have regulated domestic fuel stocks forcing relian...
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-- while congress and the president battled it out of the fiscal cliff natural gas prices have been dropping and are expected to stay low.
Got have been low for a long time is this.
The one good thing Americans can look forward to is this silver -- -- our economy dornin now former shell.
President John -- Meister a John happy new year and and let me start off first of all with.
You know a couple of years ago you talked about we're gonna see five dollar gas.
And and we kinda did people in California -- five dollar gas I don't know where else but.
It barely got there and then backed off and now we're -- -- down what do you make of all of this.
Well the five dollar prediction was predicated on 3% per year economic growth.
We obviously did not make 3% economic growth because of the lack of economic leadership.
In this nation and all the other fiscal problems that we have.
But here we are in the at the beginning of 2013.
We have not had an energy bill releasing more energy access in the two in the 111 congress.
Or the 112 congress now we're going into the 113 congress that will be four years of no energy bill.
And the only reason we have more natural gas than we've had in the past.
And the only reason we're seeing more oil production in the past.
Is that private landowners.
-- state permits.
Are opening up their land to more oil and gas exploration which is wonderful for the US economy wonderful for the American consumer.
And I'm all supportive of -- and that's what's driving the prices lower.
But it could go even further Tom and this is the issue I have with the federal government and the dithering.
Of our federal officials they have done nothing.
To improve access.
In federal lands.
Federal offshore waters and we can have so much more.
We're still paying too much for -- gasoline because we're using about half.
Of the oil.
From imports why are we using imports.
When we could be producing domestic resources so that's the big conundrum so we've always a little bit the market that we hear some anytime John is about the fact -- we -- to achieve oil dependence by thugs of today you're saying.
We can do it today if the federal lands were open but the states are doing not all of them some states.
Are -- land office business in their in their property.
Absolutely.
North Dakota Arkansas Oklahoma Texas Pennsylvania Ohio they're going through.
That had an incredible economic growth spurt which is sustainable over many many decades to come.
But why don't we do the same in California and New York State.
Off the coast of the of the eastern Gulf of Mexico off the East Coast the West Coast off the Alaska -- there's so much more than we could do putting Americans to work.
Increasing revenue to the federal governments -- it ought to raise tax rates and creating great jobs for future generations of workers.
We could be doing all of the dead on the end on the edge of new prosperity.
If the government would just get out of the way yet but here's the deal you know as -- -- -- them.
That were all go -- Thank goodness -- the pain three something for oil were also happy that it's not for even five in some areas so people were satisfied.
We are curse with short memories -- That's a serious problem for this democracy.
We are -- with the forgetfulness.
What it used to be like.
We could have such economic prosperity.
Like the 1960s.
And seventies with energy leading the way.
Access to domestic natural -- -- we could take the pressure off.
Our pocketbooks.
With a bit of government leadership that could drive such economic growth.
That we could be reaching 567%.
Economic growth.
Why would we aspire to 3% when we could do five -- 6% it's crazy yeah we're doing door itself it is not yet we keep.
But by outside -- The New -- utility in California to states that are blessed with lots of natural resources they won't touch fracking Nobel Ronaldo.
And I and end to play devil's advocate with you for a moment.
Why should they -- all these other state to -- and a dude they're drilling they get the benefit of the lower prices to open.
Yes and how is California's fiscal situation how is New York's fiscal such oil.
There on the verge of bankruptcy if it's a true accounting was done of all the dollars they -- putting their pension fund contributions that basically out of business because they won't touch the natural resources that have been bestowed upon them.
In their geological region shame on them they're hurting their own people I can't stand that when government -- by and for the people hurts the people.
And they don't care they just ignore the fact that everyday people.
Are paying through the nose everyday people can't afford that the discretionary things they'd like to have a life -- children look forward to -- less well off.
Up future.
Because of government bureaucrats and elected officials who won't be accountable who won't be responsible.
For common sense decisions about the future economy of this nature of it makes no sense I get they get reelected that's the short term memory loss that we have in this country so Bob first weekend of the year we've got thirty seconds which way we go with -- and John -- prices gas prices going up or down.
All depends on economic growth of economic growth rises 3% or more during the course of the year we're gonna see hundred dollar crude oil all over again.
Back to four dollars a gallon because we aren't producing what we could otherwise produce an interest in.
John -- Meister always good to talk you think so much for being on.
