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Why -- gas prices spiking here Fox Business we've talked a lot about the supply issue we've seen certainly some political pressure.
Rising demand saying I see it but what can you -- -- thing crystallize what exactly is happening this summer.
Well -- the world crude oil.
Marketplace and what we're seeing as world demand for crude oil is is.
At a record high and we see a lot of supplies -- at risk.
There's about a million barrels a day off the world's markets and Libya.
Have a lot of strikes there we announce he's civil unrest in Egypt.
So there's a lot of pressure on the world -- supply and demand right now as pushing up those prices in the last week or so.
We've seen crude oil prices go up the equivalent of four dollars a barrel.
Which is about ten cents a gallon so that pressure is there right now our refiners.
Their margins are being squeezed because the crude prices gone up.
And yet over the past week -- retail prices are about a penny less than they -- A week ago there about thirteen cents less than they were a month ago -- heading into the tail end of the summer driving season.
We have a lot of refined product out there in fairly flat demand so well we're just -- have to wait and see we also have.
Weather events potential weather events were still not to the hurricane season there's a lot of uncertainty in the market place right now.
What drivers do to save on gas.
Spending and how can people prepare especially with hurricane season coming up by cart covered hurricane sandy with a lot to think about.
When it comes to conserving these -- that.
Well -- number of simple straightforward things I think consumers can do.
And they can you -- -- make it quite a big difference in what you pay at the pump and they're simple things make sure that you inflate your tires.
That'll save you had say a mile per gallon make sure that your engine is properly -- that's another mile per gallon.
Try to use your air conditioning sparingly if you can name in the summer months federal -- as much as two miles per gallon and the way jive matters to.
You can save up to two miles a gallon just -- -- tailgating.
These abrupt starts and stops are not good for your mileage -- you -- all of those that they if you could even say 34.
Miles per gallon at the pump that translates into a lot of money in your pocket -- and spend on other things.
So -- what consumers can do government can look at the big picture in the United States how can we produce more.
And how can we can consume less and there's a lot more we can do.
In terms of bringing on supply and North America.
Partnering with Canada and getting that Keystone Pipeline bill that's 830000.
Barrels a day from the very reliable supplier to the world's market.
It's -- equivalent almost half of what we currently import from the Persian gulf so it's a large amount of crude into the world's market.
That could help put downward pressure on the prices same thing in the United States we have areas off limits to development.
That could make a big difference in the long run opening up these areas doing what we can to maximize our own domestic production.
And I'll leave us and the world's market much better off than they would've been without it.
Well -- certainly definitely one way of looking at the issue what do you think about hybrid car than vehicles that are.
That run on better fuel efficiency we just have been speaking about that and that ten minutes leading up to -- your interview.
What's your take on how much backing in -- gas prices.
Well -- -- he has made a big difference in the United States over the last couple of last few years actually -- consuming -- -- Two million barrels a day less fuel than we did back in 2008 that's a significant.
Drop in a lot of that has to do with fuel economy.
And fuel efficiency and also changing demographic somewhat.
But when we've gone out and see Americans who consumers gone out and bought new vehicles they're looking -- -- the fuel efficient vehicles.
And they're buying warm more of those vehicles and it has had an impact so we consume less with -- biggest consumer on the planet.
And we produce more that really is a formula for putting downward pressure on prices.
-- talked about this -- rarely are going back to keystone a couple of you know domestic supply opportunities.
How can that actually affect the price of gas in the short term especially for people looking to travel.
This year next year -- -- a long term projects obviously feel I belong to me back.
Is there any short term impacts.
Will -- It wouldn't be just just the announcement alone if that is say if -- save the pipelines approved just announcing that it would be approved.
Would really because the buyers out there looking not just to -- buying fuel for next month or next year but even years after that.
So that could have really help.
Put some downward pressure on the market if they knew you going to have an extra 800000 barrels a day within a few -- coming on from Canada.
And from a reliable supplier same thing in the United States.
If you announced -- an open up some new -- to development that's new potential moving forward so all of this adds up.
Everything we're consuming today is brought to us by investments made a very long time ago.
And we have to always think about replenishing that -- because we're gonna need it.
We have great opportunities here in North America it would make a difference not only the jobs that can -- -- the market in the government revenue that we can generate.
But really in the world supply of oil we put on a million new barrels last year a record for the United States a significant amount.
We can do even better with policy that supportive of domestic development.
For the long haul.
And a short time in the short term we have to look to ourselves how we use our vehicles and how much -- we can conserve ourselves.
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