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Hofmeister: Natural Gas Would Compete With OPEC

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    Citizens for Affordable Energy CEO John Hofmeister weighs in on rising gas prices.

  • Duration 4:15
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-- the pump climbing regular unleaded averaging three dollars and 52 cents per gallon nationwide that is 22 cents higher than just a month ago.

And the hits just keep on coming we are also learning.

The amount of the average that the US act average US household spent on gasoline reached nearly 3000.

Dollars last year that is 4% of income.

Before taxes that is the highest percentage of household incomes spent on gasoline and three decades.

With the exception of 2008 that is according to Department of Energy -- John pop Meister is.

For president of Shell Oil in the current CEO of citizens for affordable energy.

So if you break all that data -- sort of translated to English it's saying that the price has gone up.

While consumption.

By gallon has gone down.

So the net effect is we're paying more -- come in and for gas that we have in three decades that's depressing stock.

It's very depressing and it's like an invisible tax.

On consumers.

For which there was never a vote taken.

And Melissa this is not just new this year this is the fifth year in a row.

That we have seen.

-- a year pricing on crude oil drive higher gasoline prices taking more money out of the consumer's pocketbook.

At a time when the economy needs recovery.

Not regression.

And so this is a regressive tax and on on the American people it hurts those who have the least the most.

And you know what for five years I have been saying.

It's time for the US government to grab hold of this problem and do something -- They think they haven't if you look at -- you know you say that consumption no point to the -- the consumption is down when measured in gallons.

To the level that it was in 2001 in a lot of the reason for that is because people are driving more fuel efficient cars in their car pooling a lot of the reason for that also is that fewer people are employed.

And you can't afford to drive as far as you're cutting back -- prices are so high.

I think that's the real issue people are cutting back because they don't want to spend so much money on driving.

Especially those who don't have a full time job and and but here's what we need to do.

This is not all the US government's fault of a big part of it is because we have no plan no policy of no leadership.

But OPEC.

Is responsible for the global crude oil price we need a competitor for OPEC that's what we need and -- Countries solution what do you like natural gas for transportation.

Absolutely.

Absolutely all over the country I'm talking about it now where we would -- increase natural gas production.

From around 65 billion cubic -- today up to about ninety billion cubic -- today.

40% of that extra production could go to truck transportation.

60% to automobile and pick up truck transportation.

We would compete with -- OPEC with one dollar a gallon wholesale -- all for personal cars.

And compete with compressed natural gas liquefied natural gas against four dollar diesel.

It we -- Do you sense especially in light of the fact that we have seen such a tremendous increase in the amount of natural grass that we have on hand because we discovered fracking -- -- down it's become so popular.

All of a sudden we have a bigger supply the problem is.

That the administration and most of those in power in Washington are not in favor.

Of using more natural gas has once again it's a fossil fuel do you think that anything would make -- get behind natural gas now what about the fact that.

You know energy secretary Steven issue.

Is on his way out -- on Friday that he's going to be leaving is there any chance well that you replace him with somebody who's.

More friendly to natural gas.

-- I certainly hope so Melissa we now have five major openings.

For government appointees by the president.

All of them touch energy.

It's it's the energy secretary of the interior secretary the commerce secretary the Environmental Protection Agency.

And the end -- the National Oceanic and Atmospheric Administration.

All these jobs are open and we have nobody being appointed.

You know somebody has to say and I'm happy to say it to the president.

Get with the President Obama and okay your people are paid too much for gasoline.

Job pop -- -- love your fired thanks so much for coming on we appreciate it.

Thank you.

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