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Big oil's -- but -- -- absolutely -- you know about gasoline and oil.
Erica watching him -- I'm I'm told him.
The new hero is rising.
Saving our future -- -- but something called hyper violent actually does increase.
You go up.
Mild on the rain there are a lot.
It's about gasoline.
That's our show.
-- -- -- Car trip this really -- Warmer weather mean -- sees.
Now we all have opinions about the price of gas who's making money from -- what might be done about it but it turns out so much of what we think we know.
Is not so.
And -- reason we get it wrong as the companies and interest groups like a lot send politicians.
Well more I may be too harsh a word they mislead that.
Pretend -- with a few laws they can make everything better.
President Obama says gas cost too much and he feels your pain.
The serious blow to your budget by getting hit with a new tax coming right out of your pocket so the president took action.
We've taken steps to soften that blow by making sure our cars use less gas.
We put in place the toughest fuel economy standards in our history over the life of a new car the average family will save more than 8000 dollars -- the -- Sounds good -- who doesn't want to -- 8000 bucks every year.
But the magic of fuel economy standards is just one more meth politician Seles.
Here to tell us the truth our Susan Dudley who runs the regulatory studies center at George Washington University.
And James Taylor who studies energy for the heartland institute.
So what's the problem President Obama just said he explain he saved me 8000 dollar.
Well the problem is he he's that the government has saved you money.
Reducing your choices people value different things in your vehicles my husband and I we love we have -- hybrid cars and we love and we drive them.
We can you we -- on vacation.
I'm but we also have a pickup truck that we you -- -- around the farm.
Now for our hybrids.
We value fuel economy like -- like gas mileage for our hot -- -- value different things than the problem with the government's.
Rule is that they're ignoring all those other preferences although that the things we think about -- -- -- a car.
And assuming that the only thing we value is -- content.
And there's a costs of this people don't think there's a cost 78% according to pew favor requiring better fuel efficiency.
But the car dealers say this is gonna make cars cost 3000 bucks more.
And the government's -- estimate is that the most recent roles that you just mentioned sixteen billion dollars.
To achieve those -- but these are popular.
Yeah -- and consumers right now if they want they can purchase these automobiles right now.
I'm wondering why we're doing this other than sticking your nose in other people's business in order to make cars more fuel efficient.
Auto manufacturers are essentially making them smaller than using lighter materials they're less crash -- So we're seeing thousands of people dying on the roads right now that shouldn't be they wouldn't be if we didn't have.
These requirements these regulations these restrictions.
So more people -- but we get more mileage next -- people assume had.
The auto industry hates regulation and fights it.
Intensely but I noticed something weird when that fuel standards bill was announced.
The heads of thirteen carmakers were there shaking the president's hand and -- feeling everybody looked so happy.
What's that about.
People tend to think that industry doesn't want regulations.
But in fact the industry often supports regulation because it gives them competitive advantage.
So in this case there are some a few of the auto makers -- support of of the rule.
But also I think the industry they face the threat of different regulations in fifty different states.
So this might have been a lesser of two evils and even if it is a sixty billion dollar cost to them if everyone has to do it they can pass on to consumers.
-- -- John just like with other industries when you are heavily regulated if -- a large company if -- already making profits.
You can absorb those costs and you may not like paying them.
But at the same time you know -- smaller companies upstarts those who have good ideas those were -- innovate.
They can't afford these costs.
So if you're -- -- -- advantage -- exactly so -- -- -- absorb those costs and say it's a necessary evil because we can beat down.
Other competitors we can we can keep that market share to ourselves and that's where we as consumers suffer we don't get these innovative products.
Innovative companies -- beat down by regulations.
A few weeks -- -- reported on another example of how big companies benefit from tough regulations check out this cool amphibious vehicle.
No -- -- -- -- -- -- I press a button and the wheels roll -- Now I've got a real -- Even more useful amphibious vehicles this big one could be a terrific rescue vehicle.
In places where there are lots of lakes and rivers.
This SUV's size one all solved but the company says American regulation makes it very difficult to get these things approved in America.
And one reason is -- big auto makers is so comfortable with the current regulations that they joined the government in resisting animation.
For example this vehicle cannot be used on public roads in America because it has no air -- But it can't put care makes it -- both present time it -- a wave -- -- would go off.
Forget -- with frequent -- planting the air -- but.
As as adults unless the manufacturers of these innovative vehicles.
Our affirmatively hiding something from us why shouldn't we be able to make that choice it's going to make our lives more enjoyable so.
I'm not bashing big auto let's not take on the oil companies I'm told they oppose green energy they don't want the competition.
This Washington Post headline sums it up nicely oil giants don't want to follow Obama's green lead.
I assume that's true loyalists and green but.
You say this is a -- Absolutely -- method ExxonMobil for example they invested 600 million dollars in algae research for biofuels.
And they see an opportunity to make money especially if government is going to may -- or subsidize.
These -- how he got government so absolutely so they're not opposed to that.
And they are in fact the biggest investor.
He has a green stuff you don't know that put these -- oil companies they see an opportunity to have more subsidies.
Pork thrown their way why not get on board.
Next -- electric cars great for the environment of this must be true because I once got this electric cart totally free.
Thanks to a government subsidies.
The subsidies -- now go on that electric must be better for the earth because congress still subsidizes electric vehicles.
This is -- -- -- electric isn't better.
-- not better because first of all we have to get that electricity from somewhere so if the justification is were reducing emissions will now we just have power plant emissions plus the batteries for those electric carts and if we.
Then put them in -- automobiles as well they're also -- very significant environmental problem in terms of recycling or what have you.
And by the way thank you for that segment I watched it and I got one of those golf carts myself -- you need a little bit of a hypocrite but.
You know these -- drive around the neighborhood -- around in my girls have a good time with it.
The government justified it by saying that we were reducing emissions so like -- be driving all over our neighborhood without it it's just the toll.
Next Smith Democrats regulate and Republicans deregulate.
You were a Republican.
Well I was the overseer of the regulators he ought to go to any of regulatory affairs under President Bush right.
-- the evidence just does not support that if you look at the number of regulations issued by president George H.
President Clinton and George W.
Bush over their terms they issued on average the same number of economically significant regulations.
Now President Obama has been regulating more -- his record he's about 20% more than.
Any of his three previous missed.
Plus the notion that President Bush with a deregulate air and would say that and that's meant he issued some some of the most far reaching -- son.
Air quality food labeling and he hired 90000.
New regularly as they call on the well -- -- it to the pressure to regulate is intense.
On the and as we've noted before even industry is pressuring for regulation so when everybody wants winning regulation can give you some competitive advantage.
Everybody pushes forth and really nobody pushing for let's step backing give people more freedom of choice we are on this program I think he assistant and change.
Like that -- When we talk about gas and oil and what they cost I think about.
Over here this barrel of oil so.
Let me ask the audience.
A big oil in this barrel how much of it becomes gasoline.
All but most of it but no I don't answer because you're too Smart you're my audience -- I ask people in Times Square Obama today becomes gasoline.
All of it.
I don't say.
That maybe 67%.
Is probably converted to gasoline.
So what's the truth.
Well John -- me is chief economist for the American Petroleum Institute he should know so what percent of a barrel becomes gasoline.
-- varies by -- -- -- type of course but roughly less than 50% goes to gasoline and the rest.
-- a lot of different things like diesel fuel jet fuel things like that and a whole host of other products and all like all the stuff that's on this table.
All made from oil.
People -- realized this.
There's one thing on this table that isn't made from oil can you guess what it is so will quiz you raise your hand is is this life jacket.
When guys has a life jacket computer.
One couple people the volleyball.
-- he says are all about styrofoam cups.
Many sister asked -- -- not talk about the bottle the aspirin itself.
How about collapsed.
Okay you got it right this is the only thing not made with -- And why do you say this it's important for people to know this most important because if you're looking around your house.
Virtually everything that you have there is either made from oil warship bio so even -- that glass wasn't made for moral it was probably shipped by.
What -- need to be we could be shipping things with power from the song.
Well you could -- could.
So if we stop using oil.
We wouldn't be able to have all these things.
There's no question we've been around for a 150 years inventing a lot of different uses for oil and what's really exciting is how much new oil we've been able to find.
I'm glad you keep hanging -- thank you John when we return more deaths and a real way to save money on gasoline it actually works.
Whatever gas prices go -- hucksters appear promising devices that'll make your car burn less gas.
Hearts they know they're all garbage -- tested some -- claims relies there were a device auto makers install it because it would give it a sales advantage.
However there is a way to save on gas without -- blast that does work it's called hyper smiling and special correspondent candy.
I -- my mind.
Kennedy lives in Los Angeles she drives a lot says she's mastered for useful -- mailing techniques the first you've heard of before.
-- -- -- -- -- -- And that means when you're at a stop light and you're about to go.
Am on the gas you're really wasting fuel that way you wanna start slow and just get going -- -- -- -- people behind you kinda crazy but the -- you're gonna see -- again.
-- there's -- my help I'm happy and I'm not morning Matthew thank.
You -- -- -- -- The next techniques more controversy.
Shifting in the neutral and coasting well coming up to a red light.
-- -- it into neutral.
Can only neutral we're going downhill in California but it's okay because we're -- going -- he -- coast into a stoplight.
And -- I just staying neutral it is against the law closed down hill and they statesman.
Coasting does save gas really effective and it's pretty fun.
All of a sudden you get addicted.
To putting your -- -- neutral whenever you -- and I have not relent on the accelerator one.
About 400 yards.
Filling tires to the recommended level also makes a difference the rubber manufactures association says just 15% of Americans do this.
Another controversial technique is drafting closely following another car better yet a truck -- It breaks the wind and creates a little vacuum for you.
But there's danger in doing this -- -- told not to tailgate.
Kennedy does it sometimes anyway and says these hyper smiling techniques do work she sees it on the digital meter on her car.
Now I can see that rain was on my car McLaren on the gas winning new hybrid out properly -- -- it's -- and you can actually see it go up and you can and I'm miles on the range in just a few short miles that party at ten miles my range.
Players say that a couple blocks but you're risking your life if -- means being home.
John I risk my life every weekend a -- to get into the particulars but let's just say that.
-- not mincing any of that driving itself is the most dangerous thing we do it's incredibly dangerous.
And -- I don't tailgate -- is.
I just let them like he said break the wind to give me a little bit more fuel efficiency -- Semi better in bike racing -- its insurance and bike race at California says he shouldn't allow four feet per miles per hour.
Saw -- 65 miles per hour it's supposed to be 260 feet seventeen car lengths back on course nobody does know.
Organs more -- -- say three feet there'd be thirteen Carla thinks you know what in New Hampshire it's minus two car giants.
There was a joke at Patrick.
-- but this does save you some money the posting is illegal.
Downhill but people do it.
-- you on the freeways to kind of sling shot all the Paulson -- so you celebrate you get going and then you put it in the neutral and you essentially stay the same speed.
You have to do it in the right Graham Marlene -- to be doing any other -- people hunt you down and we'll find you and that's the real thing.
So let's consider how much money you can save -- -- the average person spends 2200.
Dollars on gasoline -- year.
You are -- save sixteen and a half percent what's that -- -- For the average person 367.
Boxing here normally you do -- -- issues at the end of the year there and you -- -- like it.
I'm addicted -- -- I started doing it in 2008 when the economy went sour and gas prices had really gone up.
And I just try to find a way to not -- hybrid that was the most important thing I wanted to keep my DH.
This was the only way to do it.
Thank you candidate later saving hundreds of dollars it's too bad new government mileage standards cost several thousand dollars but -- But that's golf.
Coming off more -- does the oil you -- fund terrorism.
And is it good for us of Americans grow more of our fuel we debate that.
Ramp up the availability of ethanol politicians told us -- -- solve our energy problems.
You know were running out of oil.
We depend to -- of the Middle Eastern oil pollutes.
It sounds right after all and -- main ingredient is -- corn is grown right here in America.
So we get things like this commercial.
A new hero is rising.
Saving our future.
Did you -- -- you and you -- to.
Ethanol -- renewable energy for your car.
What I wanted -- Euro itself.
I guess I should thank Bob demeanor of the renewable fuel association is group promotes Seth and although it did make that commercial.
James Taylor who edits the heartland institute's environmental.
Environment and climate news letters back to say.
Bob's arguments of certain while we will wives serve.
Most absurd that we're going to save money or make our country better through ethanol.
Right now ethanol is substantially more expensive than gasoline has been in order to get from point a to point B we have to spend a lot more money for fuel -- for using ethanol.
That of course hurts the economy and it reduces our standard of living.
But what do you mean it costs more at the pump it's just mixed it.
Well at the pump -- you're not seeing the in other words for ethanol you have to multiply the price of ethanol by one point five to get the true price comparison with gasoline.
Because after all that is not -- concentrated fuel as gasoline to you have to -- more of it to get to the same place.
-- Well I'm -- James is just wrong the fact of the matter is ethanol today is sixty cents below the price of gasoline.
-- to the terminal.
And it is saving consumers money but isn't that lower price because we taxpayers are throwing money you -- and no not at all.
In fact the ethanol industry receives no tax incentives whatsoever.
The oil industry does -- -- -- tax breaks it tiny text for -- dig it more than we do.
The other already gets nothing Boris what I love my friend Bob but the fact of the matter is if ethanol was less expensive than gasoline.
Bobby and others wouldn't have to go to the government telling them.
You must pass a law to make people -- product could -- and -- your own quiet.
Trading -- If there was anything like a free market in energy today we wouldn't need to put oil companies deny.
Marketplace access to left and off.
They don't allow free marketers to sell.
Hello I'm how to they have the power to stop -- With franchise agreements they absolutely control.
What is sold they -- controlled the gasoline infrastructure.
And the only thing then is broken that dynamic that has allowed ethanol.
To be used anywhere in this country is the renewable fuel standard a policy that says you know what.
There aren't important.
Economic energy and environmental benefits.
We want to reduce our dependence on imported oil.
So refiners you gonna have to use some measure of ethanol it's a conspiracy among the oil companies they've locked him out.
They ethanol companies they can set up their own distribution network they can have their own franchise agreements.
There's nobody from the oil industry from anywhere else it's going to state legislatures it's going to congress in -- pass a law.
Locking them out and forcing people to buy what we have.
Second point the environment.
I was told it's not oil in its core it's cleaner.
For the year.
Yeah it is indeed ethanol reduces all the criteria pollutants carbon monoxide hydrocarbons that form ozone.
Toxic centering gasoline and it's the only liquid transportation fuel we have that is going to reduce greenhouse gas emissions.
It is a great bargain for the environment if that's true why has almost every environmental group including once -- used to support you.
They've turned against it.
Well it's not really ethanol that -- against I think they don't like production agriculture.
Those are different issues and there are environmental groups that have recognize that ethanol is reducing carbon today and the fact of the matter is.
It's -- noble is the only resource we have today that addressing that issue who renewable what.
Not that it's grown in America isn't that good for oil is produced in America too and that's good for -- also.
Regarding the assertion that -- almost better for the environment.
-- and also essentially neutral when compared to gasoline we're talking emissions when we're talking carbon for the lifestyle the production process.
But what Bob doesn't bring up is affected ethanol growth.
-- growing corn for ethanol is very -- and intensive.
Right now 60000.
Square miles of land is developed for ethanol production.
That's an amount of land equal to the state of Hawaii in the state of New Jersey and the state of Delaware in the state of Rhode Island in the state of Connecticut the state of -- -- -- -- Mind you he ran through all this land for -- at all that I could eat and sell -- -- more work and people.
Somebody's gonna starve -- you get all the goodies in fact it would happen.
I think is farmers -- becoming far more efficient would growing more on each acre of land when I graduated from high school we we got about 84.
Bushels per acre today we're getting a 160.
Bushels parade there so we don't have to expand.
Land in order to get more -- No food doesn't cost more because of all the stuff -- you -- doesn't the fact of the matter is ethanol -- more than 40% of the nation's corn crop.
Away from food for humans away from feed for.
Cattle ranchers from poultry farmers -- separate that has a negative impact.
On prices negative in the sense that we pay more as a result.
Thank you James Taylor -- the name -- I say.
Paid for year old a final -- bass could be first special deals coming up.
Those greedy oil companies.
I say they actually do a wonderful thing for -- We should thank them -- -- you've probably disagree.
But next energy independence.
How can that cannot be good.
But what -- my next guest says independent.
America get most of our oil.
From Saudi Arabia.
It's what people think we're does most of our oil comfort.
Middle East in the Gulf of Mexico when we buy gasoline do we help fund terrorism is the wheels it pumps money into areas you don't necessarily want money to -- -- And so our political leaders tell us.
-- -- serious long term challenges facing our country's dependence on oil.
Especially oil from foreign lands.
This country is on the -- Towards more energy independence and that's good for everybody.
Good for people's pocketbooks.
It's good for the environment.
It's good for our national security.
We don't want our economy dependent on something that happens.
On the other side of the world.
We lights so we should become energy independent.
Frank Gaffney of the setter for security policy agrees with that.
But Jerry Taylor from the Cato Institute says independence is nonsense.
Jerry nonsense if we were energy independent there were simple as supply disruption in the Middle East it would increase the price of Middle Eastern crude and American crude pretty much the same amount as a global market -- a fungible commodity.
Energy independence does not protect you against its bad stuff that happens abroad but at least we stop funding terror.
There is no correlation between how much money goes the Middle Eastern terrorist attacks you can you can look at the data and find references al-Qaeda built up its infrastructure and its military capability in the 1990s.
Oil prices in the 1990s were 120 dollar -- -- 125 dollar barrel range didn't take very much for you to do that.
The if you look at the data -- regards the terrorist attacks the tallies from terrorism and oil profits you find there's no correlation whatsoever dollars are not the limiting factor.
Or for global terrorism frank.
I would argue that if you do nominates an energy independence in terms of oil.
If you want to change the game entirely.
You denominated in what we might -- fuel -- You -- earlier segment about a from home that's an expensive way to get fuel choice and in expensive way to get fuel choice.
Is by taking the abundant quantities of natural gas that we have now.
And turning in and about the ball and making -- a transportation fuel which when available to the consumer.
As an option.
In addition to gasoline.
In addition perhaps -- You suddenly create conditions that actually can destroy OPEC think about Boston.
There's a -- -- in Boston that was an incubator for the terrorist attack there.
Mosque has its financing from Saudi Arabia yet but that's kind of thing that -- makes a real difference here -- security.
I want to believe it because I believe almost everything that -- suggests but that idea he.
The idea that is that it is stop throwing money to these.
Madrassas in Saudi Arabia and that can teach people.
That Americans deserve to die sound Smart -- madrassas here.
If the United States didn't send its money to Saudi Arabia for crew let's begin about 10% of our -- -- -- 10% from sorry let's say we just got -- from there than Dorsey Dorsey produces Great Britain Norway or whatnot.
It wouldn't matter much we just displace the customers -- previously sold to them by from the saudis it would reduce their oil prices profits sending.
The idea that our actions by buying crude oil from these producers somehow in -- -- be -- word otherwise.
Would be is just simply not true and -- you actually are using another fuel.
In the mix and this is the point meanwhile we don't want to destroy yes -- you guys like.
Consumers to have a say you like I believe yes choice -- guys like libertarians like that's what I'm saying.
That if you actually create fuel choice and this I know sit down gentlemen.
This requires the government sang with like the consumer to have fuel -- -- is a -- the government have.
Because what's happened here this is really an important point what's happened here is we have thanks to the mandate in Brazil.
Seeing auto manufacturers in this country making cars that can use other fuels alcohol based fuels like ethanol.
They just don't market them that way in our country since about 2007 what if they kill -- -- cheap and no we're not so they want as long as at the moment.
They're exclusively configured to use gasoline until we get our cars off of what I think of as castle call -- You're going to have what got -- force that I want I want them to do is I wanna say we want the consumer to have fuel choice if.
In when methanol can compete with gasoline you -- he demanded a darn thing people make a profit by bringing in the marketplace the reason we rely on gasoline transportation markets.
Is it is the cheapest fuel available to us now you're right about one thing compressed natural gas pump methanol but compressed natural gas -- under priced gasoline right now.
The problem was I think you understand.
Is it would take hundreds of billions of dollars to invest in the infrastructure necessary to get -- gas stations CIA or -- gas stations delivery pipelines and -- -- -- what the reasons I sent some fashion sense is this not clear to be profitable senator Trent you're from if you actually.
Open the market to methanol.
My guess is you're gonna find the cost of math and all dramatically declining and the fact that's what the economists -- They don't says -- -- check is it not been used on me before that got my attention I hope so -- there and I should answer the question I asked before where is our crude oil come from.
Most of it most 43% from America next is Canada.
Then Saudi Arabia Mexico's fourth Venezuela after that Iraq.
It's hilarious to go back and listen to politicians promised energy independence it's.
Always about to happen.
This horrible excessive dependence.
On foreign energy sources they promise to bring us closer to energy independence for our country -- 1980.
Kids tell -- And -- are about ten years but now we are told that thanks to fracking for natural gas it.
It may have could happen if we actually allow it to happen.
By making it something we can explode at the moment we can't.
This is what allowing libertarians to help us get fuel choice and allow folks like these.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- With fuel cells.
I don't know compressed natural gas it's unclear we don't know what the most -- -- should efficient fuel tomorrow will be but what we do you know.
Is the market will deliver -- to -- if it makes economic sense to transition.
What what fracas talking about is a government forced transition as a government at all or its sounds a terrible yeah I'm scared.
No what I'm actually.
Here's what I'm -- since 2006.
American auto makers among others have been manufacturing -- -- sold Brazil.
They've had to make them flexible fuel because the government there has a mandate.
Consumers has not been -- before entering a whole new cargo would be.
Government imperiled if this is using the cars we've got by and large thank you and -- NJ area coming up.
And I I don't know what you were -- which side.
-- -- -- -- -- -- The audience gets to grow our guest.
-- -- -- Your questions for my guess Jerry Taylor from the Cato Institute.
James Taylor and not the singer -- None and all the original time from the heartland is -- Frank Gaffney of the Center for Security Policy so first from my FaceBook page.
Liz -- and asked.
What are ways to unshackled the industry -- energy can be produced more efficiently.
-- obviously you can open up federal lands for drilling where there currently not allowed to drill for instance that the Arctic National Wildlife Refuge in place in the Gulf of Mexico that's a simple thing that we could do.
But the reality is is that hydraulic fracturing which is giving us two additional million barrels of crude oil a day which is a pretty big surged.
Is occurring without government interference for the most part we are producing brain interfering here in New York -- -- in New York but there's the most in the reserves right now in the in North Dakota are producing flat out private lands in the midwest are producing a tremendous -- crude and in Texas and Oklahoma.
And we're seeing probably gonna see another surge of crude oil from California.
To the audience yes sir we heard the term eagle -- wondering is that of a myth or your thoughts on that.
-- -- -- most people don't appreciate about oil production is only 35% of the crude oil that we have in the reserves that are producing today ever gets produced for the -- 65% stays in the ground.
But when technologies change it allows it to be more economic to bring up that crude it comes up.
If -- to move say from 35% extraction rates to 40% extraction rates and global basis.
That be like getting almost to Saudi Arabia's the global crude oil market so people talk about people oil what they're really saying is we've had a dead and an old technology.
We're just never gonna end of may we're -- gonna find cheaper ways to get some of -- -- crude on the market.
-- you know little dubious that proposition as hydraulic fracturing is now causing an oil boom the United States.
If current trends continue will be a larger producer of crude -- and even the saudis by around when he put it.
He's -- -- you mentioned a government mandate that's in place now that favors big -- Wouldn't it make more sense as a solution to try to get rid of the -- we already have instead of pollen and you went on top of yeah.
Plus our government mandate it's what has developed over the years we've built an entire industry around using gasoline.
People who sell it.
And people who drive there or build their cars to -- the industry but we do have a choice.
The industry did choose a long time the government -- not -- government can't -- -- an industry tell us now we know we have cellphone if it is your -- -- industry that focuses on one particular product doesn't mean their four were shutting off other products from competing unless as a practical matter the institutional.
Interest say let's keep doing.
Right now frank didn't corporate average for that we have we have automobile fuel efficiency standards the United States' right to tell you tell auto companies how fuel efficient cars after the -- state that's forced.
And they get credits for meeting that standard they produce flex fuel vehicles and stuff the friend talked about there's millions of cars on the road today that are flex fuel most drivers -- notre flex fuel.
The reason the only reason Detroit makes this stuff it's because they get regulatory preferences to Bill Lewis that's actually not true that the number of -- -- in the United States that are marketed as flex fuel vehicles.
Does -- -- can't even follow and that's what that's I don't know if I.
Yes there -- they're making them for Brazil all of them but necessary.
-- today we don't have a truly free market for energy whether it's OPEC -- restrictions on growing.
-- ethanol subsidies if we had a truly free market for energy how would that change.
The energy we use and would a lot of the alternative -- green energies we use ceased to -- or is even feasible truly free market.
That's a great question if we have a truly free market for energy first of all energy would be a lot cheaper.
How would that shape the market.
That's a fantastic question because that gets to the heart of the issue and that is we cannot determine I cannot determine some government bureaucrat cannot determine even the best energy.
Economics expert in the world can't tell us right now what's going to -- one -- -- now thirty years from now.
The most efficient economical energy source force that's why government should allow the free markets work and therefore entrepreneur -- will bring to market.
Those products those technologies that work best.
You -- you want the government to create a mandate to give us more choice in the market but we already have a choice we can choose to buy your not to buy products.
Are you really just saying that you don't want to choice and we've made.
No I don't think so what I'm saying is that.
You could have.
Much more choice we've been talking about why the prices are so high it's not our government controlling the price is it's the -- government that's controlling the price.
When they decide that we're producing too much and it's going to reduce their profits.
They drive down the amount that OPEC supplies that's what we've got a break and we can do it with fuel choice -- Iraq can't economy we -- that.
The fact that OPEC makes decisions about how much crude -- the produce is a fact of life like the fact that the sun rises in the morning there's nothing we can for the most part do about it's their crude all they -- -- what they like the best we can do.
Is provide for an efficient marketplace that allows for the right.
-- -- the video the right market response when the government tries to respondent Jimmy Carter won the synthetic fuels which is a giant white elephant.
George Bush the second George Bush won -- freedom cars run by a fuel cells you don't hear that being discussed today do you.
We heard I -- all of that we heard promises about -- cheapening gasoline in the seventies and is still a dollar a gallon more expensive and now our latest version.
Is not at all if if and when methanol or this other stuff is competitive believe me people wanna make a buck and they'll make tons of money getting in on that.
Well thank you Jerry James frank coming up when I -- Every time we go to the gas station we ought to thank.
Two final Mets tonight first it's better for your car if you buy premium gas.
Must be better right it costs more.
-- -- I guess to keep changing cleaner when I put regular in my car runs out a lot after the one -- -- and yet it -- and it more premium gas.
But it's not safer -- better a few cars with high compression high revving engines like -- and corvettes need higher octane.
But for 90% of the cars sold -- their high octane is no better it just waste your money.
Now the -- where most of you probably don't agree with -- most everyone says gas cost too much.
Today was over four dollars that's ridiculous character much too much weight too much the American public schools -- on board.
And ask him everyday life.
And here stocks and an old media we keep close track of gas prices gas prices rising for the sixteenth straight day.
In the most popular anchor tells me the oil companies are not your friend.
We are getting hosed at the pump.
Whole list how many -- you agree with Bill O'Reilly.
-- feel if you all right this is the stop -- audience.
The majority of your right we would be lucky to get an equal hole losing only pay for health care or college tuition.
Because gas is cheap we should think or -- companies think what they do to bring us a gallon again.
Oil sucked out of the ground sometimes from war zones are deep beneath an ocean.
To get to the oil drills now -- and dig sideways to as much as seven miles of earth.
What they -- then delivered through long billion dollar pipeline then put in monster sleek Spencer tankers stepped shipment across the ocean.
That it's refined into several types of canceling.
Transported in trucks that caused hundreds of thousands of dollars until finally it gets to your gas station.
Which spends a -- your own safety devices to make sure we don't blow ourselves up while filling the tank.
And even after all that the gasoline per outs still costs less than not bottled water they -- -- those gas station.
If government produced gas it would cost fifty boxing out and there would be shortages.
People complain about oil company profit.
But we should be -- that they make lots of money profit is what gets -- to find moral oil so we have supplies tomorrow.
And just how much profit do the human ball Apple's profit margins about point 4%.
ExxonMobil the biggest oil company 11%.
How much profit is that per gallon at the pump people think it's a -- to a gallon but Exxon clears about seven cents per gal.
Governments by contrast Graham but averaged 27 cents that's the average gas tax -- -- If he -- greedy it's government.
Oil companies can't be too greedy as they have confrontation.
That's our show all have another -- -- -- next Thursday night 9 PM on the Fox Business Network.
Thanks for watch.
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