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Why are gas prices so high?
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Former Shell CEO weighs in
- Duration 3:24
- Date Mar 2, 2013
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Transcript
This transcript is automatically generated
Almost four dollars a gallon in summer is still months away right now the national average for a gallon of gas.
Is three dollars and 76 cents that's almost a full two dollars higher.
-- when President Obama first took office so why are prices so high so early in the year we're -- former CEO of Shell Oil John.
Talk Meister hi John.
-- -- -- why are gas prices so high right now.
Well this is the fifth year in a row that we have seen gas prices accelerate.
In January February march.
And it really comes down to one basic fact.
The price of crude oil is set by a cartel.
Which in this country would -- it be illegal.
They're conspiring to hold back supply in order to keep the price up to a certain level.
Because they depend on the crude oil price to run their countries and we're paying for it.
And it's absurd that after all these years we would have to pay -- cartel's price.
What we have to do Alison we have to -- to competition for fuels.
We have to design cars that can take in addition to gasoline.
Other liquid products like more ethanol or methanol we can make -- from natural gas.
We have more natural gas than lever consume.
So we need to shift our thinking.
And shift to flex fuel vehicles so we can have an alternative.
Competition.
Against the cartel's pricing.
Right -- would bring the price down very quickly very.
Well and it just to give people some context for how much we are spending on gasoline let's compare it to 2009.
And 2009.
Families were paying an average or households of 2000 dollars a year in 2012.
It went up to.
2900.
A year in other words were spending 900 dollars more per year now that we were just a couple of years ago.
-- -- -- -- You gave a warning to Barack Obama who was then Senator Obama before he was elected president what did you tell -- about all list.
I visited with Senator Obama during one of its campaign events in saint Louis Missouri.
And I said.
Senator I've read your campaign.
Materials and you have nothing in there with respect to the future of drilling for oil and natural gas in this country.
And I'm here to tell yet if you don't have an aggressive program to drill for more oil and gas you if you win the election.
You'll sit on top of the highest prices of gasoline the country will ever have experience.
We have to get on with producing more supplies because we're in a tight oil age and what -- I saw this that was his response well.
He said we're going to do biofuels.
I said yeah we can do biofuels but we also need more get natural gas and more oil.
And he said you're not listening to me we're doing biofuels.
And then chose to walk away.
Not a very constructive can discussion so I walked with them I -- senator this needs a much longer conversation.
We really do need to have an understanding as to how we proceed.
Into the future now or we pay the highest prices -- -- back.
Your tenacity is admirable John very quickly -- one word will prices go down before summer.
Doubtful may be a little but not much.
John Huff -- thanks so much for coming up.
