Apr 12, 2011|
Tommy, in for Garland talks with Senior Petroleum Analyst with Gas Buddy Dot Com, Patrick Dehaan. Filled up lately? Prices at the pump are approaching record highs. Have prices per gallon forced you to cut back in other areas yet or change the way you drive?
Should drug addiction in the city be treated as a health issue or drug issue? More deaths due to overdose in New Orleans than homicide. This hours guest: Dr. Jeffery Rouse - Orleans Parish Coronor
Bernie Sanders said he’s going to push his plan for a single-payer healthcare plan like Europe. He says Obamacare is costing us too much and the GOP can’t get their bill together to correct the problems. This hours guest: Michael Cannon - Director of Health Policy @ Cato Institute
OH CANADA! Could Canada be the next country to legalize recreational marijuana? Canada is proposing legislation that would legalize recreational marijuana by 2018. This hours guest: Chief Larry Kirk - Retired Chief ( Old Monroe Police Department, Missouri & member of LEAP (Law Enforcement Action Partnership)
Is an independent “select committee” necessary in the investigation of Russian hacking & possible collusion with Trump associates? This hours guest: Max Bergmann - Senior Fellow at Center for American Progress Steve Bucci - Director of the Allison Center for Foreign Policy Studies at the Heritage Foundation
Automatically Generated Transcript (may not be 100% accurate)
Normally -- news Garland. And tummy -- in for Garland Robinette. This week Garland off on assignment in the noon hour we're gonna talk state treasurer John Kennedy whom I believe I had a conversation with. Some year or two ago about the whole charity hospital project and he says they're gonna have a hard time selling bonds. -- the whole project finance will talk to him. And specifically about the letter that David did erodes. To -- concerning the the end charity hospital project end we'll talk to you continue to talk to you about. Well I'm pretty jaguar opinion poll do you think he's doing the right thing or not and do you think it's well I guess soon. Have a we're seeing now I met a forty think it's pork or bacon. Are you more concerned with. Deficit spending nor about getting spending under control or do you think this is gonna be a big economic engine. For the metropolitan area. But first we talk about something that hits us all maybe every 23 days maybe every week when we fill up at the pump and that is the price of gas. I had been putting. It's super unleaded. In of the Camry because I think it runs better when I did that and I liked the effortless acceleration. But I might have to have a talk with a camera. Because three dollars and 99 cents a gallon on Sunday last time I filled up. -- lagging continue to do that Simon have to forego the effortless acceleration. And -- movie network. Member of that Howard deal. The TV anchor who came on and said in the movie the fictitious. TV anchor who said you've got to get mad you've gotta say I'm mad as hell and I'm not gonna take it anymore and before opening their windows in the movie and and screaming -- mad as hell am I gonna take it anymore. But really what can you do you need the gasoline. You need to drive and and then there's the argument to be made that if you are. Say here for example in favor of unlimited executive compensation. And you are the ultimate free marketer. Then even though it hurts. You should get mildly excited every time you fill up and pay for. Dollars per gallon gas or 450 because it is unfettered capitalism at its finest. -- -- -- -- If that's what you think because I believe that's what's going on joining us right -- sorted no load. Patrick -- man who is senior -- truly an analyst. With gas buddy dot com I don't Patrick got Dario good good morning let's start with. Why is the price of gas so high because I think that's what everybody wonders what they stick then nozzle in their tank. Oil wonder if there's a more simple answer that I wanna -- -- to give you but essentially there's a whole lot of things going on here that that are that are pushing up. Pressure on crude oil prices there but he remembers what's going on Libya and so boy don't get oil from Libya while. And it's it it impacts the global supply and demand balance and essentially with the Libyan situation Libya as crude oil. Is no longer being exported and so you have countries that typically receive it now. Are competing to get the oil that we receive and that puts pressure Arnold prices but more importantly. Summer driving season you're around the corner and we switched to a different type of gas -- it costs more to produce new combat that we -- have to pay for refiners only certainly don't want -- Until they pass that console on. Not only that but we're saying drops and gasoline inventories just six weeks away from Memorial Day. And to bring sensitive time a year right now it's pretty important. That we begin to build inventories of gas plan because everybody goes on vacation in the summer and we need inventories so. To see it drop right now it's adding more pressure on oil prices played just got a whole recipe a whole slew of things going into the and why prices are going out not just one easy inter Alicia was just that simple. Yeah explain if you will Patrick YE a armed people and it. They think yeah boy he gets complicated issue that's yeah I know it's obligated and am trying to presented in a way that that people can get. -- It people who did follow the price of oil on a daily basis. And they think that OK it's down two dollars so as a result they expect. Price at the pump materiel you hear I hear you Latin America they expect the price at the pump then to go down the that evening. Walk us through the steps if you will from the -- going to. I get a tech silly comes in Tommy stop crying about the gas prices. All right a biker get a spirit 98. Miles per gallon it is what it is. Com I don't believe I'm crying about the price again -- ever sending this text but I did I do know this a lot of people. Who are having a hard time dealing with this because. You know a lot of senior citizens say that they're on a fixed income but I think unless you're in sales and work on commission most of us are. On a fixed income Patrick because you don't need your paycheck is. What it is. An and I also think that it to digress here for a moment if you are in favor of unlimited. Executive compensation. This is the price of gas this really is. Unfettered capitalism and you really showed if you're in favor of if you are free marketer. In a way you should kinda get excited when should you when you fill up -- tank and as the price against rises because. This is. Schering. Capitalism and market forces at work or not. That's that's right it's the free market at work here it's supply and demand investors setting. For those people that you know gas prices I have actually don't like it that's the system that we have it's a free market system where you can buy and sell. You can you can make money you can lose money it's it's all told risk that. You know we have seen in years past for the folks that that they want to control prices put a cap on prices well. Hawaii try that a couple of years ago it turned out badly. Prices essentially stated the upper part of the range. Essentially when you gas prices oil companies. Just stop doing maintenance they've stopped caring they stopped doing a whole lot of things because. They can't charge more so bill just produce full lap band I got to the situation things got so ugly. Regulators removed the cap final price is just a short while after that was enacted so the free market has been. You know it works say it's big can be ugly in terms of high prices but it has worked for us for quite some time. Really take a call here right now we see goodwill has on his mind I will urine WL. I don't know good. You know I don't believe. And and and I'm not you know you don't own only playing -- -- ugly car. They could be out as Americans are they -- I have where we really know what -- already being. How how do you -- beer. Our house and the truck so shocked I go to. The -- -- -- -- But it it this way I don't -- I can't worry about what 200 dollars a week with the truck and twelve and it that is going to. At a time -- the United States of America -- -- the oil companies would be that bad. You know I don't think they are aren't they I think they're holding up quite the way they are I think we actually be downloads. I think there -- laws that have been different but nobody nobody thing about it I don't say okay. It is it you know I don't believe that. Or when I -- I don't think we wit to yet although I think it would act to make or out by the way -- work. Because at that time yeah. Just not saying within hours he does. Putting any auto under the table. We went oh -- it would appear to -- nobody went. Yeah because there and with thirty. You know what I -- a person that they want of the -- the body oil well let its -- it he would -- and it's it was out of outward. We have all up by now that'd -- record high end. Is there any -- that they control. The -- all the little beatle. All right it went -- -- by about the barrel. 85 dollars a barrel that day almost. I will you -- a whole bunch of stuff let me let Patrick -- -- Well I you know you -- And Angela and loving yeah I want my prices just like your wallet -- lifestyle of -- you know the comment on the on the being gouged by high prices. What we have to wrap our mind around here. Is that oil is consumed by more countries than just the United States here and so. There's a limited amount of crude oil available the world uses about 86 million barrels. Which means about 66 know amber over consumed by other countries. And while we might be that being gouged here you consider being doubt we have to consider. That there's a lot of countries that are increasing. There needs their desire for oil and we can't just get this oil out of the clouds and so. Essentially when you have developing countries like China we're putting 101000 plus vehicles with new vehicles on the road every day. -- of countries like India worth throwing cars. On the road won't be you know the big event like an eBay option here so to speak oil is the auction. Everybody wants that China especially want to. There shaking hands -- Venezuela they're shaking hands with I ran. They are making oil -- left and right. Essentially. There's not an unlimited amount of oil. And China and India. The countries that continue to import. Oil at breakneck pace to record imports. They are helping to push interest in oil up and so essentially they're over bidding in the United States. And for oil companies to continue bringing oil the United States and fulfilling our need for oil. They essentially have to outbid the Chinese to get what oil is available -- that's pushing up pressure and the pomp and that's just -- unfortunate reality is not only. Are -- are their cars in the on the road to in the United States but we have to be year old concern about China and India they are adding more vehicles. On the road than we artery you know in months. And then in and of itself pretty much. It cuts -- any conspiracy. Business with Iraq gore oil fields are artificially controlling this -- that because. It's supply and demand issue because -- the rest of the world once and if we don't. Bet that that's right you know if if we don't want the oil there are lots of there are lots of countries out there that are. Our demand in the US is pretty stagnant it's stayed around twenty million barrels so we we don't necessarily need more oil but you have China. Who just in the past five years is being double digit percentage growth almost every year here. We forget about these countries that are outside of our control you know oil isn't just -- for the United States that it goes to the highest better and so China. And there are people. Now what now are getting more of our money thinks that things to Wal-Mart enough buying Chinese because a lot of our money's going over there. What do they do it that they buy vehicles and they love driving just like we do and so duplicate that it -- -- supply and demand issue China's demanding oil. And so what's an oil company going to do results for the lowest better you know it's it's just not the way things work if if you know and we wouldn't have jobs in this country if companies didn't make money so -- companies don't -- the lowest -- -- -- blue eyes bitterest and that pushes up prices here in the United States. Patrick I hope you have a couple of minutes because I really would like to taken. And because there's some didn't do that affects all of us on a daily basis for the most part and I would like to take. Some time in and separate the perception from the reality in the fact from the fiction DM a couple of minutes are very good Patrick dating and. It's Garland Robinette a think tank on WW LA MFM and dot com C news talk and sports leader 50426018748668890. Wait seventy. -- -- -- -- -- -- -- Separate the perception from the reality in the fact from the fiction when it comes to what is driving up. The price of gas and we -- Patrick approaching a new record high what is the all time record high and we're talking about average I guess in the nation ranked. -- you know the average Joe or forward them strengthen their currency ever journalism student at a record and the US was 415 and -- on average bank cannot July of 2008. And today we stand at 378 so you know -- with them about thirty cents -- -- we here in Louisiana that don't get this -- much in the NBC nightly news last night they were doing a live shot from California. And apparently about a fifteen a cent gallon difference there if you wanna pay with a credit card we don't have that here is that a common thing throughout the country are not. And thankfully we don't have it appear in the middle all parts of the midwest you have a you know cash credit discount. You know and it's something that will likely begin that didn't happen across the nation out of the government. The Justice Department sued visa and MasterCard visa and MasterCard made station plan agreement that they would not for lower prices to. The people they used cash -- now. The Justice Department sued them successfully and so now we've made these stations. Able to charge more for people using credit cards. All I hope so. I expect paying cash discount half tanks and insert gas again I just don't like to take that walk into -- before the pump. I -- regular quick text before regular phone calls after the news government should regulate oil prices from oil production. In the US regardless of the world's ongoing profitability. Auction whatever that means they city since you're not. Well you know I get to just dividend that is they want to cap prices well you know like we've said before or Hawaii try to cap -- gas prices not oil prices. It just ends badly at the -- you're putting a crimp on things then. Also say that if you tell oil companies that they only concerned seventy bucks a barrel. Powerful oil in this country guess what they're gonna find somebody else is willing to pay more in and guess what that means we don't get oil. And -- and define yourself. Back in lines like who are on -- old you're old enough to remember this in the seventy's are not in. I got Italian if you were there and you need to get to worker union have other obligations you need to meet. You'll be longing for the days of five dollar a gallon gasoline just along machine get it. That's very you know you need cheap gas you know essentially if you cap oil prices. And today would be a bargain and so forget about it you know. Hi Patrick Kane on will be right back with he had to -- so when he seventy toll free 866889087. If you wanna get involved in the conversation -- yet. Are curious is why the price a gas is so high end you wanna know with the prospects started coming downing and is perhaps you contemplate. A new -- 1053. W. And WWL. Dot com. Now faces up to spend some time -- seasons of Peco senior petroleum analyst with the gas but he guys come and it affects all of us every day -- that we Philadelphia every day but. People are filling up every day the pricing gas creeping toward record high isn't. Patrick before we get back to the phones in the tanks. How -- -- I don't know what answers question and not. But how high do you think you could go in and how. Far do you think it'll drop their period goes to his time as they can go. Well how -- how -- really good news here asks you know we want Patrick. And that's well you want good news it's a little truth it is you can squeeze some good news in now would be good sued people like not gonna make it a lot of the time I have to -- holiday as the -- little -- a good news deception in New Orleans prices averaging 360 do. You know in the last 248 hours here since Monday do we is seen crude oil prices go down seven dollars a barrel house put out. And now today. Goldman Sachs is saying Goldman -- is heavily invested in oil they generally like to see higher oil prices. Goldman Sachs saying and warning investors that occurred is due for a quote substantial pullback so. We're actually in the midst of a large drop in -- prices wholesale gasoline prices down we may have already peaked or may be very close to peaking gas prices. Amen for that but but this since we're talking about that explain to people why -- since you said that an instance Goldman Sachs Internet. You're not -- necessarily see. Walk us through the process if you will quickly while you are gonna see the price of gasoline automatically fall when you go to fill up tonight or tomorrow. Sir here's what happens is that 11 crude oil prices go up. I generally prices the pump go up very quickly because station owners know that -- cost. For the next tank of gasoline will be through the room. And a lot of times people will realize again they can get that a tank of gasoline a truckload of gasoline. That can cost in total 45 grand just for that a lot of stations. Can't afford it and actually have the finance their gasoline and confinement or other forms so. Station owners raised their price to trying covers some of the cost of financing not only that. But they have increased their price because they know that next -- it's gonna cost them thousands of dollars more. Why do prices come down so slowly. That's one stations recoup some of that money they'll lose believe it or not when prices are rising as sharply as they have sanctions many times. Make very little if any money. And so on prices go down. Stations there's Florida -- that discount on the motorists and that's one Embry troops some of their losses and make just a little bit of money when prices go down so that's why it takes a little bit longer for prices to go down. Stations try and stretch out and recoup some little off the term early periods. And in terms of of profit. Is as far as running the business is the idea in terms of the business plan and business model really. To make money on gasoline here's the two did she end of the by other things in the store. You know really a lot of folks don't know -- but stations if they're lucky these days they're making just a couple of pennies per gallon. We believe in an attitude it's not the stations making the money they're feeling the pinch. Their job. It's bigotry inside -- -- them to -- them beverages are chipset -- they make a little bit more money you'll love look pianists here. Owning a station is not necessarily. -- huge. Cash cow here a lot of times these are mom and pop operations in fact. A lot of big oil companies are getting out of owning stations themselves a lot of those stations to see out there are independently owned by people are living your community so. Keep that in mind a lot of the times are trying get inside the by the chipset try to make the money. And then the question Patrick is who is making the money. Well it's certainly the old companies basically. Yes star -- -- world coming out of the ground and that is were remote to your prophet is you know essentially one. Oil prices go up 220 dollars it doesn't suddenly cost -- that much more money to pay their cruised to drill. -- cost of doing business stayed the same. And their price that they can LA goes out the oil companies make a lot of it. And you go down toward the refinery and the entity individual station there's left money made it. The closer to the palm view yet so just keep that in mind. Oil companies making the most and refining companies take a decent shot don't forget the government the government gets their hand and and as well. They aren't in the top three for eating some of the money right out of the price so. Very little is made it to get towards against pomp and when speculators. -- you know speculators either -- we generally they are propped up on top as well it really depends on what's going on speculators can win big they can lose big just like that in 2000 they -- prices -- from four dollars two dollars truly hard to determine. How much these folks are walking away Iowa. And in terms of oil companies. Make in the money I think you gotta remember that oil companies. Employed people executive compensation. Is the dvd is comprised of about one and a half percent of total profits the rest of it. Pays salaries are evil at work for the oil companies he goes and a for a one didn't publicly traded companies. So it goes in the for a one k.'s pensions. And stocks correct. That's right in not only that but but let's remember when crude prices go up. A lot of people out there may actually hold. Oil companies and their 401K portfolios and -- or not to. A reason an additional reason oil prices go up so rapidly is because some of these for a one came managers some of these big companies. See that oil oil is becoming more. It's looking mattered so they dump millions of dollars in the oil and so if you hold energy or oil companies here for a one K. That Murray might be part of the problem one -- prices go up so quickly is those 401K fund. They go running into the oil companies and say here here's our money and now that can help boost oil prices up. They did you when when the other eye candy Amanda bell hi thanks for holding your -- evidently well -- -- on our door girl. Good loads obviously garlic salt but art and so are our friends that's fine that's a keg and don't. For amber a good answer a simple I want a very. Trader. We want to kill. Because I don't care how much all it. If it is the only Democrat -- -- right now I wrote a -- Louisiana are -- broke sweeping Arab. Or -- that gonna come here -- don't go to the person that say they wanna pay the most electric. And no cup you sure of them -- even built some of -- American based company that they have no -- jets. It'll anywhere in the united very stupid to do global conglomerate. -- actually -- any -- if you build I would we just send their allegiances to their stockholders. Combatants are a little bit if you happen to be American -- But you can buy it if you want. Really yeah I was in Iran really you know you took an idea for a bit here but then manipulation. Trader. The trigger on the water make might be you that while we are just happens driven out of this week. You know our. Patrick boy you know a lot of it is is just some last day here's Soledad that -- an old man accidentally have you have an investment company saying hey let's get out and you're seeing a lot of speculators there are politically what happened in the last couple days. -- -- -- All nothing's really happened politically just kind of the attitude is changing on Wall Street that -- -- -- -- Mastercard's saying demand for gasoline is beginning to drop ever so slightly. And and the Atlantic and -- Atlanta neatly -- the big sales figure today it was Goldman Sachs they're heavily invested in oil. And for a company that traditionally want title prices due to say. We might you might wanna get out of oil a lot of people are following what -- -- and other dumping oil that's resulting in prices to apply also. Essentially. It's a big elephant in the market Goldman Sachs like it doesn't have a have a lot of money in oil and though one they'd say get out a lot of people follow what they say. Quickly -- tell me your theory what do you think students. Too many German government control and Nigeria. Just got an Olympic got it -- who got big refinery near epic orchard there. ChevronTexaco. -- fail. Certain books include. Any any leaving and then Patrick. Boy you know I've ever heard any any any sort of disruptions coming from Nigeria you know there's there's not a whole lot of news out of Nigeria. At least that I've been keeping my and Libya continues stay it to be that the driving force them they're talking about a ceasefire as well. That is also ease pressure on prices whenever you talk about a ceasefire. And the -- sure there's no current oil exports that's good news for the market because suddenly a cease fire could mean that oil exports would resume an -- also easing pressure panel prices. Thank you for the culture any quick text before the break now in its opening -- explain why we pay more compared to other countries. Looking very similar to pharmaceutical industry went on that. And act act Billy you know I'm sure that person thinking of Venezuela why the heck are -- paying pennies on the dollar gas prices there are under ten cents a gallon why. The government subsidizes this so essentially you might be paying higher taxes down there. Order or maybe not but the government is essentially paying the difference refiners down there. Are forced to operated along the government is essentially paying the different between what what is really -- -- gasoline sold for and what the president the pompous so. If you're buying gas at seven cents a gallon down there the government is coming up for the rest of the money I don't know. -- government can can -- might like that but I given our deficits we sure can't. Dances and ten cents a gallon in Venezuelan. You can put out -- -- -- -- it sure as well you know like Bob frost compute Doug how much you would cause me to drive to Venezuela. And bag. Crunch the numbers of let me know they'll work down -- -- split at Olympia -- -- -- Venezuela's. Is an island now I can drive to Venezuela -- and a now some iron but yet but I think that delegate may be time to fill up begins we'll crunch the numbers come back and talk -- Patrick day in a senior were truly an analyst Steve. On the -- Garland -- tank in the big 877 WLS color earlier confuse me for Garland and I can think. -- no higher compliment me and say that Patrick -- -- again he is a senior -- analyst with gas buddy dot com. Nice enough to spend an hour with -- today to help us try to sort out. The reasons behind the on the high price for gasoline in all likelihood of its common -- is some good news that. Do we know really have time to recap eleven but anyway the eight how low do you think. Given everything that you said. The price against might come down. All would drag it let's not get overly excited I don't want to oversell this people expecting two dollar -- have to come back that it's happening again is that it's certainly not looking very likely. You know if everything holds true here this week we were still only early stages -- oil prices dropped like it said. So far in the last two days we -- in the drops seven dollars a barrel now there's a potential that all the sudden things swing around depending on the way the market works a lot of time. After oil prices dropped so quickly they regains some of those blossoms but. If things hold the way they are we could ignore lunch prices dropped to about three -- here in the next week herself. But like it said that's just. That but be real cautious about that. Oil prices are very volatile -- -- -- higher -- likened that two days in a row of price decreases as pretty good and head I just Italian. I only have about ten and the -- for the little. Question yeah yes. But but -- if you charge that the prices increase and then the way it falls it goes up. IBM you and do an index it goes up eighth inning comes down three goes out of date comes down to it if you're if you're planning a strategy on either staying in the vehicle you're in Irvine -- -- a -- -- No we're not gonna -- two dollar a gallon again two dollar a gallon gas again growing. Now are related to appear likely Elie Kenny can sit and of course the bottom at the bottom fell out of the economy that's possibility but. Things look things look pretty pretty strong -- economic front that doesn't appear likely I would say that a majority this year. Will spend at or above three dollars a gallon by Barbara I quickly you're into the WL. -- We can't my question is. Why are we giving it failed -- -- in dollars. Two develop there oil which is going to China. And we're not opening up the our building -- I learned the tried BBN. Regard what the company's talent who they sell it to. -- -- -- or not the United States it's gonna put more bad thing here so you know we have some solutions pride and our he had. Our stay -- And -- -- -- Barbara -- -- little bit we got a text that says of the USA was able to drilling -- Atlantic Pacific. And any look at that did that -- production knitted sub. -- admit had been talked about line on the Garland show he can can we produce our way aid to lower gas prices are not. Well it'd be very difficult because we're still looking -- oil companies that want to fetch top dollar and if we add oil to the world supply it will help footed the you know there's a limit to how much you can help you know with the way things -- sit down the road with Chinese increasing their -- -- their economy -- it's unlikely that. That prices will drop simply because we have free market economy all companies their readership. Oil from the United States anywhere they wanna saw anybody who -- top dollar in that won't keep pressure Arnold prices now we are developing. We're all talking about not new drilling in the gulf that could help add crude oil supply. That would ease pressure on prices but I don't think we'll get back down to two dollars at least for some time. There's also some promising consultancy and in Utah. Kind of similar to the Canadian cars and we get. We'll have to see about that but of course environmentalists. Sounding the alert many production from Utah. It is supply is that the demand around the world gonna suck that up anyway anyone have any effect on price. Well -- demand around the world will likely absorb that you know the United States -- the only countries there are some other developing countries that will continue to pay increase their usage of patrol in the United States is close. If we haven't already seen in our demand for petroleum speaker here on out or going to get more the sense. Others return to work. -- -- -- Garland thing ten big 878 Debbie WL John Kennedy's state treasurer for a long time there's a lot to say about the new. LA she -- hospitals. David dinner now is -- -- university medical center actually is what it's called these.