SPATE WELCOME BACK FRED GASOLINE
HITTING ANOTHER NEW RECORD THIS
WEEK AS SUMMER TRAVEL PICKS UP.
GAS BUDDY IS PREDICTING $5 A
GALLON OF GASOLINE AS EARLY AS
JUNE 17 THROUGH THE NATIONAL
AVERAGE OF GASOLINE NOW $4.76
FOR JOHN WRIGHT HAS GAS BUDDY
HAD A PETROLEUM ANALYSIS PATRICK
IT.
GREAT TO SEE IT.
THANKS SO MUCH FOR BEING HERE.
SO WHAT IS YOUR TAKE ON GASOLINE
GASOLINE?
>> GOOD MORNING MARIA.
YOU LOOK AT THIS AND NOT A GREAT
ONE -- NOT A GREAT PLACE FOR
AMERICANS TO BE WRITTEN AS YOU
SAID WE’D CONTINUE TO SET RECORD
PRICES EVERY DAY.
THAT IS GOING TO CONTINUE FOR
QUITE SOME TIME FOR AN
AMERICAN-STYLE SPENDING
$6,650,000,000 MORE ON GASOLINE
EVERY DAY COMPARED TO A YEAR
AGO.
YOU LOOK AT SOME OF THE MONTH ON
MONTH INCREASES ACROSS THE
COUNTRY, ILLINOIS UP 86 CENTS A
GALLON AND THE LAST MONTH.
INDIANA UP 79 CENTS FOR
ADJUSTING GAS PRICES ALL OVER
THE COUNTRY COAST-TO-COAST.
MARIA: YES, BUT WHAT IS DRIVING
IT?
ARE YOU EXPECTING IT TO GET
WORSE IN THE SUMMER MONTHS WHEN
PEOPLE DRIVE MORE?
>> WITHOUT A DOUBT.
WE CONTINUE TO SEE RESILIENT
AMERICANS HITTING THE ROAD.
DEMAND IS NOT AS HIGH AS WHAT
WOULD SEEN IN PAST HISTORY BUT
GIVEN THE FACT WE ARE PUSHING
RECORD PRICES IT IS CERTAINLY
VERY SURPRISING TO SEE GASOLINE
REMAINING AS STRONG AS IT IS.
ABOUT 8.8 MILLION BARRELS A DAY
BEING CONSUMED BY AMERICANS IN
LIGHT OF GAS PRICES THAT ARE FAR
BEYOND ANY RECORDS WE HAVE EVER
SET.
SO AFTER TWO YEARS OF COVER
DURING THE SUMMER AMERICAN
REALLY AT LEAST APPEAR TO SATE
TO HECK WITH IT WITH THE HIGH
GAS PRICES ARE GOING HIT THE
ROAD REGARDLESS.
MARIA: THIS IS A MARKET BUILT ON
SUPPLY AND DEMAND.
THE PRESIDENT SAYS HE CAN’T
REALLY DO ANYTHING ABOUT IT.
WHAT WOULD IT TAKE TO GET
GASOLINE PRICES DOWN IN YOUR
VIEW?
>> WELL, MARIA CERTAINLY THERE
ARE A LOT OF THINGS THE
PRESIDENT MAY BE ABLE TO DO.
THEY MAY NOT BRING ABOUT RELIEF
OVERNIGHT.
BUT THAT DOES NOT MEAN STAND
IDLY BY AND LET THE PROBLEM
SOLVE THEMSELVES WE COULD BE
TALKING TO OIL EXECUTIVES,
REFINERY SAYING WHAT CAN WE DO
TO IMPROVE THE SITUATION?
OBVIOUSLY HE IS A TRIP OVER TOO
SAUDI ARABIA.
THERE ARE COUPLE THINGS HERE AND
THAT THE PRESIDENT SHOULD BE
DOING, COULD BE DOING.
BUT MAYBE IS NOT HAVING THOSE
PRESIDENT TRUMP INVITING TECH
EXECUTIVES INTO SAY HEY, WHAT
CAN WE DO HOW CAN WE HELP YOU?
I THINK THE BIDEN ADMINISTRATION
AS TO THE POINT THEY SHOULD DO
THE SAME THING TO REFINERS.
SINK WHAT CAN WE DO?
WHAT REDTAPE CAN MAKE CUTS TO
IMPROVE THE SITUATION.
THAT IS NOT HAPPENING YET.
MARIA: WHY IS IT SO MUCH MORE IN
CALIFORNIA?
WE TALK ABOUT THE AVERAGE PRICE
AT $4.76 A GALLON. BUT THEN YOU GO TO CALIFORNIA
BUT THEN YOU GO TO CALIFORNIA
YOU SEE SIGNS OF $8 GASOLINE.
>> EVEN NINE AND A HALF DOLLARS,
MARIA IT’S GETTING RIDICULOUS.
SUBSTATIONS 9045 CENTS THE
AVERAGES $6.
CALIFORNIA LEADS THE NATION
BECAUSE THE CAP AND TRADE
PROGRAM ESSENTIALLY ATTACKS ON
CARBON EMISSIONS.
HIGH GASOLINE TAXES.
ITS OWN BLEND OF GASOLINE,
ENVIRONMENTAL RESTRICTIONS THAT
BASICALLY ARE NOT CONDUCIVE FOR
REFINERS TO DO BUSINESS.
THERE’S ALL SORTS OF DIFFERENT
RULES IN CALIFORNIA THAT ALL
HAVE THE EFFECT OF PUSHING UP
PRICES THERE.
MARIA: THAT MAKES SENSE . SO
WHERE IS THIS GOING NOW,
PATRICK?
AND PAST PERIODS OF HIGH
GASOLINE PRICES, IT DIDN’T
CHANGE BEHAVIOR?
DOES IT IMPACT ECONOMIC GROWTH?
WHAT IS THE IMPACT OF THIS?
>> WELL MARIA, SO FAR AMERICANS
CONTINUE TO FILL THEIR TANKS.
EVENTUALLY IF WE DO GET OVER
THAT 5-DOLLAR A GALLON PRICE,
THAT COULD BE THE PSYCHOLOGICAL
BARRIER THAT CAUSES AMERICANS TO
REALLY RETHINK.
THE PINCH AT THE PUMP IS NOT
QUITE AS BAD AS IT WAS IN 2008
IF YOU FACTOR IN INFLATION WHICH
HAS BEEN RAMPANT.
WE ARE NOT BABY TO THE POINT YET
WHERE PEOPLE ARE DITCHING THEIR
CARS TRYING TO BIKE OR WALK OR
TAKE MASS TRANSIT TO WORK I
THINK WERE GOING TO FIND THAT
POINT POTENTIAL LATER THE SUMMER
IT COULD BRING AN ECONOMIC
SLOWDOWN ALONG WITH IT.
SPATE WE CERTAINLY ARE EXPECTING
THAT.
PEOPLE ARE AFRAID TO RIDE THE
SAVO BECAUSE OF CRIME THERE’S A
WHOLE OTHER CONVERSATION TO BE
HAD THERE.
PATRICK TAKES A MUCH FOR BEING