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Former Shell Oil President John Hofmeister on the rise in gas prices and whether it will force the president to pass legislation in favor of the Keyst...
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Following very very close -- that's the Keystone Pipeline.
The presence -- dot -- on his hands now he's gonna make a decision you build this thing or not.
I'm gonna say.
I think he's gonna build it a lot of people believe yet he will build this thing.
Well let's bring in someone who knows what he's talking about that will be jump off -- -- citizens for affordable energy founder and CEO forma.
Present all the the shell oil company what do you say that photos -- to I I'm gonna ask about gas prices.
I'll get I get the keystone up from its but I got to ask you about gas there's -- spotlight.
It going on via all we gonna see five dollar a gallon gasoline and you've talked about it before.
Was certain.
-- in some parts of the country I believe we will Stewart whether that's California New York Illinois.
It just days -- -- high tax states and so that elevates the price to the consumer.
But this is the fifth year in a row that we have seen crude oil prices jump in the first quarter.
Even with the Europe in recession even with the US contracting in the fourth quarter of last year.
We're still seeing crude oil prices jumped.
Because we remain at the mercy of an international cartel setting prices and we have no plan in this country.
I said the Senator Obama in 2007.
Stewart.
If he doesn't do something about drilling in this country in a major way and also working on natural gas as a transportation fuel.
We are gonna see endless pain at the pump.
And the American consumers are gonna see disposable income just get sucked right out of their pocket but it's here we are this year it -- -- -- -- are losing money.
-- but we've got some economists -- -- on this program is I look at this gas price spike continues and we keep going up we will be in America we will go into a recession is bad and awful ready.
Now if you've got four dollar gas or as you suggest maybe even high.
We got a recession on our hands but I -- to lead to discuss the gas prices with this you think that we've still got -- have to go is that where we are.
I think we'll see -- -- four dollars -- over four dollars per from a national average standpoint.
But five dollars in certain markets okay let's get back to the Keystone Pipeline.
I think the president what he's gonna make a decision.
I think he's gonna build it with a lot of contingencies.
Lost taxes this not tax that but we'll build it what do you say.
I think at the end he has to make a reasonable decision that's in the interest of the American people.
A few thousand demonstrators who don't like the idea of another pipeline is not representative of the American people especially -- four dollars a gallon gasoline.
This is 800000 barrels a day from our next door neighbor that if we don't buy it China well.
And it just doesn't make sense and I don't think the president is senseless I think he has common sense in this regard but he has -- PS to position themselves.
Relative to his in his supporters environmental movement to do this in a way that he could somehow holders had -- high.
And and whether that means some climate change activity or some regulations or whatever it is.
The fact is the American people deserve the pipeline it deserves the near or ordinary Canadian oil.
And and the idea that we're moving away from oil is about a senseless as the idea that the world.
Is moving away from -- it's just not going to happen because there are no alternatives that can substitute.
Natural gas would help.
Transportation fuel and other big advocate of that if we could provide if the president would provide some leadership.
On natural gas is -- transportation fuel I'd applaud because that's where we need to go next.
One last 1 I am told that ultimately.
These at the Canadian oil fields from wet with a part privately -- off.
-- that they could produce four million barrels a day is that accurate.
This is -- national strategy.
Of a sovereign nation to exploit their natural resources for the benefit of the people of Canada.
Why are we doing the very same in the United States John is where we have enormous amounts of natural resources it is let's develop them activity for the sake of the American economy for the sake of national security.
And for the economic progress of the American people it that's all I -- get let's get moving on it.
Is is it -- much oil four million barrels a day just from the Canadian tar sands fields is four million a day ultimately yes it eventually you could develop that resource to that level of production.
And sustain it for years and years to come.
Just as we could do with the oil shale that sits in Colorado.
Over a trillion barrels of oil in Colorado.
As we're seeing now what the Bakken inlet North Dakota or they of the that it didn't and southeast Texas we have lots and lots of oil in this country.
And natural gas which can serve the economy very well -- OK John.
