>> IT’S NOW TIME FOR THE WEEKLY NEWS 6 MORNING ANCHOR. MORE.
>> THIS IS THE WEEKLY ON
CLICK, ORLANDO DOT COM WITH
JUSTIN WARMOTH.
>> GOOD MORNING. I’M JUSTIN
WARMOTH. EVEN WITH INFLATION
REACHING ITS HIGHEST POINT AND
SOME 40 YEARS, IT SEEMS THE
ONE THING UPSETTING FOLKS THE
MOST PRICES AT THE PUMP. WHILE
GAS PRICES TYPICALLY DIP IN
THE FIRST FEW MONTHS OF THE
YEAR, THIS YEAR HAS CERTAINLY
BEEN DIFFERENT WITH PRICES
REACHING THEIR HIGHEST LEVEL
IN NEARLY 8 YEARS. THIS
MORNING, PATRICK DE HAAN, AN
ANALYST WITH GASBUDDY IS HERE
TO BREAK DOWN WHAT’S BEHIND
THE SPIKE AND WHETHER REACHING
$4 A GALLON IS A REAL
POSSIBILITY. FOR PEOPLE WHO
ARE UNAWARE OF WHAT GASBUDDY
IS, WHAT SERVICES GASBUDDY
PROVIDES. CAN YOU GIVE US A
LITTLE OVERVIEW?
>> BASICALLY AN SERVICE OUT
VOTERS FIND THEIR PERFECT
PIT-STOP WITH NOT ONLY FINDING
THE LOWEST PRICE GAS IF YOU
WANT TO FIND THAT HIGH PRICE
STATION FILL UP THERE, YOU CAN
FIND OUT AS WELL. BUT WE ALSO
HAVE RATINGS AND REVIEWS. SO
YOU KNOW WHERE YOU WANT TO
STOP ON THE ROAD, YOU CAN FIND
JUST ABOUT ANYTHING. WE ALSO
HAVE A PAYMENTS CARD THAT
LINKS WITH A CHECKING ACCOUNT
THAT CAN SAY USERS UP TO $0.25
A GALLON WITH WHAT WE CALL
DEAL SO BASICALLY ANY WAY TO
SAVE THE PALM TO FIND THOSE
LOW PRICES. AND IF YOU’RE NOT
ALL ABOUT THAT, MAYBE JUST TO
FIND A CLEAN RESTROOM ON A
ROAD TRIP.
>> GREAT. GREAT SERVICES
THERE. ALL RIGHT. SO, YOU
KNOW, THERE ARE A LOT MYTHS ON
WHAT SPIKES GAS PRICES. WHAT
BRINGS THEM DOWN? AND I’D LIKE
TO DEBUNK SOME OF WHAT’S THE
MOST COMMON? YOU THINK THAT A
MYTH THAT AVERAGE FOLKS GET
WRONG WHEN IT COMES TO GAS
PRICES.
>> WELL, I THINK IN THE
POLITICALLY CHARGED CLIMATE
THAT PRESIDENT HAS SOME SORT
OF INFLUENCE OVER THE PRICE OF
A GLOBAL YOU KNOW, WHETHER YOU
LEAN RIGHT OR LEFT, THERE’S A
LOT OF FINGER POLITICIANS HAVE
WANTED TO TAKE CREDIT FOR LOW
PRICES. THEY FINGER POINT WHEN
THERE’S HIGH PRICES BUT ALL IN
ALL, YOU KNOW, THAT’S PROBABLY
ONE OF MY FAVORITE MESS IS
THAT THESE POLITICIANS, TOO,
GENERALLY DON’T NECESSARILY
HAVE A FIRM GRASP OF GRASP ON
ECONOMICS LIKE TO SAY I’M THE
ONE YOU CAN THANK FOR GAS
PRICES. ONE, IT’S REALLY A
FUNCTION OF GLOBAL SUPPLY AND
DEMAND.
>> AND AS A AS FOLKS SHOULD BE
AWARE BY NOW, THERE’S QUITE A
BIT GOING ON THAT HAS TO
FACTOR. AND OBVIOUSLY IT IS
FACTORING INTO WHAT WE’RE
SEEING AT THE PUMP IN THE
PRICES THERE THE UKRAINE AND
PRICES THERE THE UKRAINE AND Two won’t hurt you. FEW RIGHT NOW IS THAT WHAT’S
CURRENTLY THE PRICES AT THE
PUMP IN THE PRICE ON GLOBAL
SCALE OR OR WHAT OTHER FACTORS
ARE AT PLAY.
>> I MEAN THAT ONE OF THE
FACTORS THE DRIVER’S SEAT
RIGHT NOW IS WHAT’S GOING ON.
THE CONCERN THAT RUSSIA WOULD
INVADE UKRAINE AND THE
BACKDROP TO THE CONTEXT IS
THIS IS THAT BACK IN OCTOBER,
THE NORD STREAM 2 PIPELINE, A
RUSSIAN NATURAL GAS PIPELINE
WAS COMPLETED AND GERMANY HAD
TO APPROVE IT BEFORE TO GO
INTO SERVICE TO KIND OF DRAG
THEIR FEET OVER THAT. AND SO
THE RUSSIANS KIND OF PENALIZE
THEM OR PUNISH THEM BY
CURTAILING NATURAL GAS
SHIPMENTS TO EUROPE. AND OF
COURSE, NATURAL GAS PRICES
SKYROCKET. AND THEN ACROSS
MUCH OF EUROPE THERE WERE
CONCERNS OF THE BE SHORTAGES.
AND SO RUSSIA CENTRAL
WEAPONIZE NATURAL GAS TO GET
WHAT THEY WANTED. NOW, THE
THINKING IS THAT OF THE U.S.?
FIRST OF ALL, LET ME BACK UP
TO THE RUSSIANS TO INVADE
UKRAINE. THE U.S. IS ALMOST
CERTAINLY GOING TO ISSUE
SANCTIONS WHICH HAVE BEEN
PROMISED BY PRESIDENT BIDEN.
THE RUSSIANS COULD RESPOND
CURTAILING OIL EXPORTS BECAUSE
OF THE SECOND LARGEST OIL
PRODUCER GLOBALLY. SO IF THEY
DID THAT, THE PRICE OF OIL
WOULD SUDDENLY SPIKE. OF
COURSE, WE’RE IN THE MIDST OF
ECONOMIC RECOVERY. A LOT OF
FUND BALANCE IS BECAUSE OF
COVID. AND SO DEMAND HAS
RECOVERED GLOBALLY FOR CRUEL,
MUCH FASTER THAN SUPPLY. SO
RIGHT NOW THAT RUSSIAN OIL IS
REALLY KEY TO KEEPING PRICES
IN CHECK. I MEAN, EVERYONE’S
OIL, RIGHT? DOESN’T MATTER IF
IT’S THE RUSSIANS. ARE
AMERICANS MARKET IS DEMANDING
A LOT OF OIL. AND SO THAT’S A
CONCERN THAT’S DRIVING UP OIL
PRICES OUT OF RUSSIA DOES
INVADE UKRAINE POTENTIAL.
THERE COULD BE SOME COLLATERAL
DAMAGE TO OIL PRODUCTION.
>> YOU NOTICE IT SEEMS THAT
WHEN OIL PRICES GO UP, PRICES
AT THE PUMP ARE ALMOST
IMMEDIATELY GOING UP AS WELL.
HOWEVER, WHEN PRICES OF OIL
DROPPED, IT TAKES SEEMINGLY A
LOT LONGER FOR PRICE AT THE
PUMP TO GO DOWN AT THE SAME
TIME IS THE REASON BEHIND
THAT.
>> OH, YES, THE ROCKING FOR
OTHER YOU KNOW, GENERALLY
SPEAKING, THERE ARE INCREASES
WHEN THE PRICE OF OIL GOES UP,
THE PRICE OF GASOLINE, THE
WHOLESALE PRICE FOLLOWS THAT
SAME DAY. NOW A LOT OF THE
TIME. WHAT I’M LOOKING AT THAT
AND WATCHING HOW PRICES MOVE
THERE IS THAT THE LEFT MOTORS
MAY NOT REALIZE THAT IT DOES
SEEM FAST, BUT USUALLY GAS
STATIONS STRUGGLE TO BE ABLE
TO RAISE THEIR PRICE, REFLECT
THE ACTUAL COSTS FOR PROBABLY
2 TO 4 DAYS. THE BIGGER THE
SPIKE, THE FASTER STATIONS CAN
PASS ALONG BECAUSE ALL THE
STATIONS ARE GENERALLY IN THE
SAME BOAT, RIGHT? THEY NEED TO
RAISE PRICES BUT OFTEN WITH
SMALLER PRICE INCREASES, SOME
STATIONS MAY NOT MATCH THAT
OTHER STATIONS WILL HAVE TO GO
BACK DOWN AND IT TAKES THEM A
FEW TRIES TO SUCCESSFULLY
RAISE THEIR 2 TO 4 DAYS OF
SELLING GASOLINE AT OR BELOW
COST HURTS THEM ENOUGH. AND
YES, ONE PRICES THEN COME BACK
DOWN STATIONS, LOWER THEIR
PRICE SLOWER THAN THE DECREASE
THAT ACTUALLY OCCURRED TO MAKE
UP FOR THE LOSS WHEN PRICES
WENT UP. SO IT ALL EVENS OUT
AND INSTEAD OF SEEING STATIONS
ALL OVER TOWN, YOU KNOW,
WIDELY DIFFERENT, $0.30
DIFFERENT BECAUSE, BY THE WAY,
THE PRICE OF GASOLINE DOES
CHANGE ON A DAILY BASIS FOR
WHAT STATIONS ARE PAYING. THEY
ALL KIND EACH OTHER IN THE
MIDDLE AND IT WORKS OUT. AND
UNFORTUNATELY, YOU KNOW, IT
DOES TAKE TIME FOR PRICE TO
COME DOWN BECAUSE STATIONS ARE
KEEN TO MAKE BACK THAT LOSS.
PROFIT.
>> YOUR PROJECTIONS, AS YOU
LOOK AHEAD YOUR FORECAST. ARE
YOU EXPECTING PRICES TO GO
EVEN HIGHER ARE GOING TO FLIRT
WITH $4 A GALLON AND YOU’RE
>> YOU KNOW, I THINK
NATIONALLY THAT’S A NUMBER WE
CAN GET TO ONLY $0.50 A GALLON
AWAY FROM TODAY, THE NATIONAL
AVERAGE CLOSING IN ON 3.50. MY
CONCERN IS THAT THIS IS THE
TIME OF YEAR THAT WE GENERALLY
SEE AMONG THE LOWEST PRICES
FOR THE YEAR BECAUSE LOW
DEMAND. THE PROBLEM IS THAT
JUST IN A COUPLE OF WEEKS,
YOU’RE STARTING REALLY IN
EARLY MARCH, GASOLINE DEMAND
IT’S STARTS START GOING BACK
UP BECAUSE TEMPERATURES WARM
UP. AMERICANS WANT TO GET OUT.
WE ALSO SWITCHBACK A
TRANSITION BACK TO SUMMER
GASOLINE. IT’S A PHASE THAT
TAKES A COUPLE MONTHS AND THEN
REFINERIES ALSO DO MAINTENANCE
IN THE LATE WINTER EARLY
SPRING AND THAT ALL OF THAT
CULMINATES IN GAS PRICES THAT
ON AVERAGE GO UP FROM 25 TO
$0.75 A GALLON BETWEEN LATE
FEBRUARY AND MEMORIAL DAY
WEEKEND. SO NOT EVEN FACTORING
IN THE GEOPOLITICAL TENSIONS
WERE KIND OF ON THIS ROAD THAT
COULD BRING US NEAR THE $4 IF
RUSSIA INVADES UKRAINE. I
THINK CERTAINLY WILL GET
THERE. I THINK THERE’S A VERY
HIGH LIKELIHOOD THE ONLY
QUESTION IS KIND OF ONE THAT’S
COME OUT LEFT FIELD. THE U.S.
AND OTHER WORLD SUPERPOWERS
HAVE BEEN TALKING TO IRAN
ABOUT A NUCLEAR DEAL. NOW
THAT’S BEEN ELUSIVE FOR
MONTHS. THAT IS IRAN IS OFTEN
SOME OTHER BOOK AND THE U.S.
AND WORLD POWERS ARE TRYING TO
GET THEM INTO AN AGREEMENT.
HASN’T HAPPENED FOR MONTHS.
BUT NOW THERE’S REKINDLED
INTEREST BECAUSE IRAN HOLDS A
SIZABLE SUM OF OIL. THAT THAT
IT COULD SELL AND ESSENTIALLY
THE U.S. COULD BE INTERESTED
IN KEEPING OIL PRICES DOWN. SO
THE NUMBER ONE WAY TO DO THAT,
MAKE A DEAL WITH IRAN. THEIR
OIL HAS BEEN SANCTIONED FOR 3
TO 4 YEARS. THEY HAVE MILLIONS
OF BARRELS FLOATING AT SEA. SO
THAT’S KIND OF A ONE OF THOSE
THINGS THAT COULD BE USED TO
BRING DOWN THE PRICE OF OIL.
BUT IT’S REALLY THE ONLY LEVER
THAT THE PRESIDENT AND WESTERN
COUNTRIES HAVE.
>> YOU KNOW, THERE’S ALSO TALK
ABOUT US. A GAS TAX SUSPENDING
THE FEDERAL GAS TAX. AND IS
THAT SOMETHING THAT WOULD BE?
SIGNIFICANT AS FAR AS JUST
AVERAGE MOTORISTS AND THEN
SEEING THAT IN THEIR WALLET
AND HAVING THAT EXTRA CASH
THAT CAN MAKE THAT MUCH OF A
DIFFERENCE.
>> WELL, TO IF I SEE A 5% OFF
COUPON, IT’S LIKE BIG WALLOP.
THAT’S ESSENTIAL. WHAT THAT
18.4 CENT A GALLON DISCOUNT
WOULD BE THAT THE DEMOCRATS
ARE TALKING ABOUT. YOU KNOW,
WHEN WE’RE PAYING ABOUT 3.58
AMOUNTS TO ABOUT A 5%
DISCOUNT. AND THAT’S JUST, YOU
KNOW, WHETHER IT’S FOR PETE’S
OR FLOWERS. 5 1% DISCOUNT
DOESN’T REALLY, YOU KNOW, DO
MUCH FOR ME. STILL A HIGH
PRICE OF GASOLINE. IS IT
SOMETHING IS IT TEMPORARY?
WHILE THEY’RE TALKING ABOUT
ONLY DOING IT FOR YEARS? SO IT
IT’S VERY LIMITED RELIEF. AND
NOW KEEP IN MIND THE OTHER
SIDE OF THAT IS THAT MONEY
GOES TO THE HIGHWAY
INFRASTRUCTURE FUND
COLLECTIVELY THAT IS GOING TO
COST 25 BILLION THAT WON’T GO
TO CRUMBLING INFRASTRUCTURE.
SO AS A MOTORIST WHO TO DEAL
WITH BUMPY ROADS, POTHOLES AND
BRIDGES THAT ARE IN THE
CONDITION. IS THAT A GREAT
IDEA? I’D RATHER PAY THE 18.4
CENTS AND HAVE MY ROADS BE A
LITTLE BIT BETTER.
>> HAVE MORE WITH GASBUDDY’S
PATRICK DE HAAN AFTER THIS,
INCLUDING THE LONG-TERM
IMPACTS OF PRICES WITH
ELECTRIC VEHICLES BECOMING
MORE POPULAR
>> THIS IS THE WEEKLY ON CLICK, ORLANDO DOT COM WITH JUSTIN WARMOTH. WELCOME BACK.
SOMETHING IMPACTING ALMOST
EVERYONE’S WALLET. RIGHT NOW,
THE PRICE OF GAS. THERE ARE A
NUMBER OF FACTORS AT PLAY AS
PRICES REACHED THEIR HIGHEST
LEVEL IN NEARLY A DECADE.
>> SOME OF WHICH COULD
CONTINUE TO DRIVE UP THE COST.
PATRICK DE HAAN, AN ANALYST
WITH GASBUDDY IS BACK WITH US
NOW WITH MORE INSIGHT ON THE
PAIN AT THE PUMP. AT THIS 0,
$19 A BARREL, RIGHT? THAT’S
THAT’S A PRICE OF CRUDE.
>> YEAH, WE’RE RIGHT ABOUT NOW
DO YOU EXPECT IT TO GO TO ONE
20 DOUBT BE A STORY THAT THE
SOME ANALYSTS PROJECTING THAT.
>> WELL, YOU KNOW, AND THAT
WOULD BE CLOSE TO RECORD WHAT
ONLY BRIEFLY TOUCHED BEYOND
THAT FOR A PERIOD OF A COUPLE
DAYS BACK IN 2000, 8 WE DID AT
ABOUT ONE 47 AND BY THE WAY
PLACE THAT JUST NOW THAT WOULD
BE TO 22. I DON’T THINK WE’RE
GOING TO GET ANYWHERE NEAR
THAT. BUT IN A WORST-CASE
SCENARIO, YOU KNOW, WE’RE
STARTING TO GET INTO A BIT OF
A BUBBLE AS IF ALL OF THIS BAD
HAPPENS OF RUSSIA INVADES
UKRAINE. IF THERE’S NO NUCLEAR
DEAL WITH IRAN AND IF
SOMETHING ELSE HAPPENS THIS
SPRING, WE COULD SEE 12000,
$30 BARREL OIL FOR A SHORT
PERIOD OF TIME. THE ONLY GOOD
NEWS TO THAT IS THAT HIGH OIL
PRICES THAT INCENTIVIZE OIL
PRODUCERS TO RAISE PRODUCTION
SO THE HIGHER OIL PRICES GO
THE QUICKER THAT PROPPED
PRODUCTION COULD BE RESTORED
AND EVENTUALLY THE QUICKER WE
GET BACK TO NORMAL PRICES. AND
THAT’S THAT’S VERY MUCH HOW IT
WORKS. I MEAN, LOOK AT 2011,
12 13. REMEMBER WHEN OIL WAS
EVERY DAY OVER $100 A BARREL.
LOOK WHAT THAT USHERED HIM
BACK IN 2015, 16, 17 GAS
PRICES ARE ONLY OF OUR OWN $2
A GALLON. AND SO HIGH OIL
PRICES THAT EVENTUALLY LEAD TO
LOWER PRICES. AND THAT COULD
BE THE SITUATION HERE. WE’RE
JUST GOING TO HAVE TO WAIT FOR
THE PATIENT AND WE’RE GOING TO
PAY A LITTLE BIT MORE BIG TO
FOR THE SUMMER.
>> WE GO BACK TO A 2020 MARCH
APRIL MAY PEAK OF SHUTDOWNS,
PEAK OF PEOPLE STAYING AT
HOME. AND YOU HAD. A LOT OF
HOME. AND YOU HAD. A LOT OF How powerful OIL SITTING IN TANKERS WITH
NOWHERE TO GO. TAKE ME BACK TO
THAT TIME AND WILL GO INTO
YOUR. YOUR HAD HAS HAS THAT
UNPRECEDENTED SITUATION OCCUR?
>> TRULY YOU KNOW, WE’VE NEVER
AND IN HISTORY SEEN SUCH AN
ABRUPT SHIFT IN CONSUMER
BEHAVIOR, THE NATION WENT FOR
CONSUMING OVER 9 MILLION
BARRELS OF GASOLINE, THE DATA
TO BASICALLY HAVING THAT
OVERNIGHT. WE WENT DOWN TO
ABOUT 5 TO 6 MILLION KNOW, THE
ECONOMY WAS PROBABLY SHOT DOWN
AS A RESULT OF AMERICANS.
DRASTIC SHIFT IN BEHAVIOR NOT
TO GO OUT AND DRIVE AROUND OR,
YOU KNOW, DRIVING TO WORK AND
WHATNOT, DEMAND FOR GASOLINE
PLUMMETED. WHICH THEN CAUSED
PRICES TO PLUMMET BECAUSE
SUDDENLY THAT GASOLINE IS NO
LONGER A LIQUID AND AS YOU
INDICATE, THEN VERY QUICKLY,
YOU KNOW, THE FACTORY, SO TO
SPEAK. OIL PRODUCERS WERE
STILL TURNING OUT THE SAME
AMOUNT OF OIL FROM PRE
PANDEMIC. AND VERY QUICKLY,
LOT BECAUSE WE JUST CONSUME SO
MUCH LESS OF IT ALMOST IN AN
INSTANT. AND SO A LOT FORMED
OVER, YOU KNOW, THE FOLLOWING
MONTHS AND THEN VERY QUICKLY,
OIL PRODUCERS, INCLUDING THOSE
IN THE ESPECIALLY WHEN THEY
FACE, YOU KNOW, THOSE $20.10,
DOLLARS, BARREL PRICES. NOW,
KEEP IN MIND, EVEN FOR A
COUPLE OF HOURS, THEY WANT
NEGATIVE. BUT THAT DIDN’T LAST
VERY LONG. OIL COMPANIES HAD
NO CHOICE, BUT NOBODY WAS
USING THEIR PRODUCT. OIL AND
THE PRICE WAS NEGLIGIBLE WAS
ALMOST NIL. SO OIL COMPANIES
BASICALLY SHUT DOWN SHOP PACK,
WHICH IS A CARTEL OF ABOUT A
DOZEN LITTLE OVER A DOZEN OIL
PRODUCING COUNTRIES DID THE
SAME THAT CUT AN ASTONISHING
10 MILLION BARRELS A DAY OF
OIL PRODUCTION. THAT’S
BASICALLY JUST A LITTLE BIT
LESS THAN WHAT THE U.S. IS
PRODUCING THE EQUIVALENT OF
THE WORLD’S LARGEST OIL
PRODUCER SHOT DOWN. AND THEN
AS WE STARTED TO SLOWLY
RECOVER IN THE SUMMER OF 2020,
REMEMBER, EVERYONE GOT
OUTSIDE. WE JUST DIDN’T DO
THINGS INSIDE. GASOLINE DEMAND
STARTED TO REBOUND AND VERY
BECAUSE OIL PRODUCERS LIKE YOU
KNOW, TO SHUT DOWN. WE STARTED
ERODING THAT GLUT OF OIL AND
VERY QUICKLY, WE SOAKED IT UP.
IT WAS LIKE A SPA AMERICANS
STARTED TO RETURN AND THEN
VACCINES ALLOWED OF A BIG
TURNING POINT AS WELL. THE
ECONOMY BROADLY REOPEN AND
WITH A WHOLE LOT LESS WILL BE
PRODUCED AGAIN, THAT WAS VERY
QUICK TO GET DOWN BY AMERICANS
FILLING THEIR TANKS. SO WE’RE
BACK AT A POINT NOW. WE’RE OIL
INVENTORIES ARE CONSISTENTLY
WELL BELOW THE 5 YEAR AVERAGE.
SO WE WENT FROM GLUT TO NOT
ENOUGH VERY QUICKLY. AND I
THINK THAT’S THE STICKER SHOCK
ESSENTIALLY IS THAT, HEY.
>> REMEMBER WHEN IT WAS $2 A
GALLON IN TWENTY-TWENTY WAS AT
3.15 NOW WASN’T GOING TO GO
TOWARDS $4. AND I DON’T I JUST
DON’T UNDERSTAND HOW CAN DO
THAT WITH JUST A CHANGE IN
ADMINISTRATION, ESSENTIALLY
THAT SUCH AN IMPORTANT POINT I
DO WANT TO REITERATE. HAS VERY
LITTLE TO DO WITH WHO’S IN THE
WHITE HOUSE.
>> ABSOLUTELY. WE WOULD HAVE
SEEN GAS PRICES SURGE UNDER
REPUBLICAN JUST THE SAME
BECAUSE PRESIDENTS ARE
CONTROLLING THIS. THIS IS
GLOBAL SUPPLY AND DEMAND. AND
KEEP IN MIND BECAUSE GLOBAL
OIL IS IS IS SUCH SUCH A
MAINSTAY ACROSS COUNTRIES.
IT’S NOT JUST THE U.S.. SO ALL
THE SUDDEN YOU WANT FROM VERY
LITTLE OIL PRODUCTION. HARDLY
ANY PLANES WERE FLYING.
REMEMBER HOW MANY PLANES WERE
GROUNDED? ALL THOSE PICTURES
OF AMERICAN AIRLINES UNITED
THAT HAPPENED ACROSS THE
GLOBE. HARDLY ANY PLANES WERE
IN THE SKY BECAUSE WE DIDN’T
KNOW ANYTHING. TRAINS WERE
STOPPED. PEOPLE WEREN’T BUYING
ANYTHING BECAUSE PEOPLE ARE
GETTING LAID OFF. SO
ESSENTIALLY EVERYTHING SHUT
DOWN FOR WHAT A PERIOD OF 2 TO
3 MONTHS AND THEN VERY
QUICKLY. VACCINES, YOU KNOW,
FAST FORWARD TO KIND OF LATE
2020, WE START TO GET SOME OF
5 SEE NUMBERS FROM THOSE
VACCINES. THE MARKET STARTED
TO RALLY OIL PRICES START TO
GO BACK UP BECAUSE VACCINES,
WE’RE GOING TO ALLOW THAT TO
HAPPEN ESSENTIALLY TO SLOW
THIS WHOLE THING DOWN AND VERY
QUICKLY, PRICES STARTED TO
SURGE BECAUSE AMERICANS START
TO FEEL MORE CONFIDENT WITH
VACCINES. THEY FELT LIKE THEY
COULD GET OUT AND SO DEMAND
SEARCH AND NOT JUST IN THIS
COUNTRY BUT GLOBALLY AS WELL.
EVERYONE KIND OF WAS IN THE
SAME BOAT. AND SO IT WOULDN’T
HAVE MATTERED. A REPUBLICAN OR
DEMOCRAT. WE’RE STILL GOING TO
SEE A MASSIVE INCREASE IN
GLOBAL DEMAND AT A TIME THAT
SUPPLY WAS DRASTICALLY LOWER
BECAUSE THE PANDEMIC KEEP IN
MIND EARLY IN THE PANDEMIC,
PRESIDENT TRUMP BAG
ESSENTIALLY RUSSIA AND SAUDI
ARABIA CUT OIL PRODUCTION.
THAT WAS A NEEDED MOVE. THE
MORE QUICKLY YOU CAN STEM THE
DECLINE IN THE PRICE OF OIL,
THE FASTER OIL COMPANIES COULD
RECOVER WITHOUT LOSSES. AND
THAT WAS A SMART THING TO DO.
BUT KEEP IN MIND, IF YOU WANT
BLAME PRESIDENT BIDEN, KEEP IN
MIND THAT IT WAS PRESIDENT
TRUMP. THAT ACTUALLY BAGGED
OTHER COUNTRIES TO CUT OIL
PRODUCTION IN THE ORDER TO
REBOUND MORE QUICKLY. AND
THAT’S EXACTLY WHAT’S
HAPPENED. IT WILL COMPANIES
HAD ENOUGH GOT BACK. WE WOULD
HAVE HAD THIS LONGER GLUT AND
MORE PEOPLE PROBABLY LAID OFF.
WILL COMPANIES IN A LITTLE BIT
LONGER RECOVERY.
>> YOU KNOW, I WHILE I HAVE
YOU HERE, I’M CURIOUS YOUR
TAKE ON GAS PRICES AS THIS
PUSH ELECTRIC VEHICLES REALLY
RAMPS UP. AND THERE’S A LOT OF
PROJECTIONS BY 2030, 2040, A
LOT OF VEHICLES WILL BE
ELECTRIC. AND AND WHAT THAT
WOULD FACTOR, HOW THAT WOULD
FACTOR IN TO GAS PRICES AND
AND VEHICLES THAT ARE STILL
POWERED BY GAS. I MEAN, WHAT
WHAT WHAT ARE YOU PROJECT?
WHAT DO YOU FORECAST THROUGH?
AS AS THE PUSH FOR ELECTRIC
CONTINUES TO.
>> WELL, I THINK THE PUSH HAS
BEEN HARDER CERTAINLY OF THE
BIDEN ADMINISTRATION AND
CERTAINLY THE BIDEN
ADMINISTRATION HAS BEEN LESS
FRIENDLY TO THE OIL SECTOR.
WHILE WE’RE SPEAKING OF THAT.
SO I’LL SAY IT THIS WAY THAT
THAT CERTAINLY ARE GOING TO
FIND A MAINSTAY IN LARGE U.S.
CITIES, BUT THEY’RE NOT GOING
TO BE THE ANSWER OUT THE
MIDDLE OF THE COUNTRY THERE’S
NO INFRASTRUCTURE AND WE’RE
INFRASTRUCTURE WOULD BE SO
COSTLY. I DON’T THINK IN MY
LIFETIME WE’RE GOING TO RID
THE PLANET OF INTERNAL
COMBUSTION ENGINES. I THINK
THERE’S ABSOLUTELY A PLACE
WHERE IN BIG CITIES YOU HAVE
EVIE THAT ARE FAR MORE
EFFICIENT WHEN YOU’RE SITTING
IN TRAFFIC THAT ARE BURNING.
THAT ARE BURNING GASOLINE, BUT
OUT IN THE COUNTRY DOESN’T
WORK. SO, YOU KNOW, A LOT OF
AMERICANS MAY MAKE THAT JUMP
TO EVIE, BUT CERTAINLY I
ALTERNATIVE ENERGIES, WHETHER
TIGER JENNER GASOLINE, THERE’S
GOING TO BE USED FOR LIQUID
FUELS. YOU KNOW, WE CAN TO SET
A POWER PLANT IN THE MIDDLE OF
WYOMING FOR A COUPLE OF YEARS.
SO THEY ALL HAVE THEIR
ADVANTAGES. EVENTUALLY, THE
DECLINE IN GASOLINE DEMAND
START TO LOWER PRICE. BUT AT
THE SAME TIME, AND THIS IS
WHERE POLITICS TO COME INTO
PLAY. THE PRESIDENT IS
ESSENTIALLY PUSH STATE PUSHING
A THE E V SECTOR FORWARD AND
AT THE SAME TIME, KIND OF
PUSHING BACK AGAINST OIL. SO
THE CONCERN IS THAT IF THIS
TRANSITION IS HANDLED
PERFECTLY, YOU KNOW, THERE’S
GOING TO BE A LOT OF BUMPS IN
THE ROAD, NOT ONLY FOR EVS IN
THE INFRASTRUCTURE, BUT FOR
GASOLINE AS INVESTORS DITCH
SOME OF THOSE COMPANIES
BECAUSE THEY SEE THE WRITING’S
ON THE WALL. AND THAT’S THE
CONCERN IS THAT IF THIS
TRANSITION ISN’T HANDLED
PERFECTLY, WE’RE GOING HAVE A
LOT OF BUMPS. GAS PRICES COULD
SURGE IF BASICALLY THE
INDUSTRY IS FORCED TO SHUT
DOWN BEFORE THE TRANSITION
HAPPENS. AND I THINK THAT’S MY
CONCERN IS THAT THERE’S A LOT
OF UNKNOWNS. I THINK A LOT OF
PEOPLE, THE NEXT 5 TO 10 YEARS
WILL MAKE A SWITCH TO EVS,
ESPECIALLY WITH HIGHER PRICES.
BUT WILL THERE BE THE YOU
KNOW, A LOT OF QUESTIONS
UNKNOWN. STILL.
>> AND MY THANKS TO PATRICK DE
HAAN WITH GASBUDDY FOR THE
TIME THIS WEEK. AS ALWAYS, WE
HAVE THE LATEST INFORMATION
COMING OUT OF UKRAINE. HOW
IT’S AFFECTING GAS PRICES ON
OUR WEBSITE. CLICKORLANDO DOT
COM. I’M JUSTIN WARMOTH WILL
GET A GREAT SUNDAY.