Gasoline prices set a record for the 16th consecutive day Wednesday. A gallon of gas cost an average of $3.62, according to AAA, and much more in some markets. All three presidential candidates have weighed in on the issue, and President Bush on Tuesday addressed it during a news conference. (Snip)
If the U.S. set a goal to produce 2 to 3 million barrels more a day in this country, we would send a shock around the world that would immediately say to the speculators, hey, U.S. is serious. President [Bush] said something yesterday about this.
The presidential candidates should be out there on the postings saying let's increase domestic production by 2 to 3 million barrels a day. That would be something that would put money back into this country, jobs back into this country, and it would bring more supply toward the Americans who need it.
ROBERTS: The president is advocating more drilling on U.S. territory. Isn't it true that globally we're starting to reach a peak in production and that within maybe a decade or two oil production will begin to decrease?
HOFMEISTER: Well, I think there is some argument [that] with convenient, easy oil we will peak sometime in the next decade. I think Shell sees that coming, but in terms of total oil supply to the world, we're a long way from reaching peak oil because it doesn't take into account unconventional oil.
I think the president brings up a good point in that we could, we have the available domestic supplies off the coast of Alaska as well as [the Alaska National Wildlife Refuge]. Shell has won $2 billion worth of high bids for the Chukchi Sea -- that's a few years off before we could begin production.
But let's remember there's more than 100 billion barrels of untouched oil and gas in this country that is subject to a 30-year moratorium. Now, there's only one body in this country that can set a 30-year moratorium, and that's the U.S. government.
ROBERTS: Sen. Hillary Clinton wants to slap you with a 50 percent tax on what she calls windfall profit, profit above a certain level. Is that a good idea?
HOFMEISTER: Look at our revenues and our income for the last quarter. If we had made $7.8 million on $114 million of revenue, nobody would call that excessive, because that's 7½ percent. We made $7.8 billion profit on $114 billion revenue -- same 7½ percent. So to me that is not an excessive number when banks and pharmaceuticals and IT companies earn a whole lot more.
http://www.cnn.com/2008/US/04/30/shell.qa/index.html
