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How does drilling impact gas prices?

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    Because You Asked: Effect of drilling moratorium on prices at the pump

  • Duration 4:19
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Only gas prices -- the highest they have been at.

And the month of February ever what does that mean for the money you pay here's a breakdown now between gases distribution marketing and crude oil now.

12% -- -- is 8% a promotion -- marketing.

An 80% go to refine the crude oil -- now with today's national average at three dollars and 58 cents a gallon that means you pay.

43 cents in taxes 29 cents a distribution and marketing.

And two dollars and 86 cents toward crude oil prices.

Where's it gonna go from here Phil Flynn market analyst with -- -- best research and a Fox Business Network contributor.

In Chicago on the floor Phil what are they saying about.

How high gas will go.

Others say and the incredible numbers it will probably you don't want -- hear in most people think that were on that cap capped -- four dollars and 25 cents a gallon.

But there are many people down here that will tell you that we will -- five dollars.

And higher and a lot of course.

-- that have to do that the price to prevent sharks he showed about what we paid so well that 80% that's the highest it's ever -- It used to be 50%.

It was the cost of crude oil and refining that's gone up over 30%.

That's weaning weeks -- refining margins.

And it's hiding these supplies of gasoline and what it does its -- of significant amounts of money into different areas the economy.

You're talking about 92 billion dollars out of the economy in the gas and that would buy the following.

Groceries for a year for 45 million Americans who ran for a year for 31 million clothes for a year for 54 million.

In health insurance or fifty.

Million Americans that's a real impact bill.

It really has him -- seen that all read it.

You know we've seen the sales from Wal-Mart earlier this week even though they beat expectations it was still down from where we'd like that.

And we are seeing gasoline demand at the lowest level we've seen an old war I decades this is -- -- impact.

On the economy right here today and now and I'll tell you this if we get into a conflict with -- -- if we see four or five dollar a gallon gasoline.

Somebody's gonna have to do something otherwise this economic recovery that we have.

Will be data on our war dead on arrival going to hold that thought too because we've been asking viewers for questions surround the week we get many on this to roll it.

Bobby -- because you actually get the following.

Uncle Johnny out of Asheville, North Carolina writes the following when gas hit.

Four dollars a gallon when George Bush was president how soon and how far prices dropped after he announced.

The -- the -- -- in their oil exploration and drilling.

When I think back in time -- how long did it take.

Well to about 86 days they fell over 57%.

And they got down to about two dollars and twenty cents a gallon now wasn't all about the expiration that was a big part of it we also went through this economic slowdown and that brought prices down.

And I'll tell you another thing -- If we can.

Step back from the brink with five grand if we can but we're those tensions a little bit I think we could see another dramatic.

Dramatic drop down and gasoline prices again -- let me show viewers what bush did and then -- -- but the Obama administration right now this is what.

The order allow.

East Coast West Coast Gulf of Mexico than when the Obama administration came in that was all change in red you see where results are essentially East Coast West Coast with the exception of the Gulf of Mexico.

Would that not help fill.

I definitely would help I mean if you look at where the price of gasoline was prior to the drilling moratorium -- -- about 285 now.

You know the price of -- was -- 85 dollars a gallon.

Opt to say that the Obama administration has formally you know being controlled by outside forces when it comes to gasoline well that's part partly true.

-- -- not true.

The Obama administration -- course -- put new regulations on refineries they put on a drilling moratorium.

They've slowed down the production of a Keystone Pipeline they -- that in all of those things.

Adds to the bottom line if you don't think -- you know you don't have -- -- at the beginning of the presidency just go back to the drilling moratorium it feels great to have in our program thank you we'll check and that's what you again in the coming days Phil -- in Chicago and there.

What drugs they're -- email -- -- dot com also on Twitter -- Bill Hemmer just a one line because USB YA thanks to uncle Johnny.

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