but former president of shell oil john hofmeister says don't get used to it. he sees higher prices soon. thank you for joining us today. >> my pleasure. thank you. >> you were predicting oil could hit 80 dollars a barrel by the fool and gas could be back at $5 a gallon by the end of the year. >> here is what's happening today. the industry is best in the world at cutting costs when they have to reduce spending. and what's happening is we're shutting douchb drilling rigs and not completing the wells that have just been drilled and we're going to eat off the surplus by mid year probably. and so as you go into the summer months and fall season you won't have the replacement oil coming the way you might have if you didn't cut back cost and the global supply gets tighter and tighter. and we all know prices jum up like a rocket. and once that starts, i don't think it is going to stop. not until we get back to a different level of equilibrium when the companies go back to drilling again. >> let me play devil's advocate for a bit. because obviously oil prices are a su

joining us now on the phone to put this in perspective for us former shell oil president john hofmeister. welcome back. we're all thankful nobody is really seriously injured in all of this so i can say this i think. is it my imagine or at this time of year do we usually get some sort of a refinery explosion or some accident of some kind that mysteriously pushes gasoline prices higher? i mean what's going on here? >> well, i think in the first instance exxonmobil is famous for its focus on safety health and environment, and so you're not going to find an operator who does it any more safely than exxonmobil. and you're not going to be -- you're in a state that is the most -- probably the most -- focused intently on companies following regulation. but still incidents do happen and obviously we don't know the full extent of this yet. but with respect to prices with respect to supply california is an island unto itself. nobody ships gasoline into california from say, the eastern part of the u.s. or the midwest. california produces what it sells. it's a rather thin market because of the enviro

john hofmeister it will be something we can watch other than just stocks and bonds.nteresting for the near future no doubt. thank you. >> thank you. >>> oil prices as we continue this conversation rising more than 11% in the last two days and adding more this morning. oil service companies going along for the ride if you want to check it out now. dominic chu joins us now with more on the move in the oil stocks. >> good morning, becky. what they can expect right now is the oil volatility trade will continue. that's leading to volatile moves in oil stocks. if you look at year to date winners, energy is still a fairly big drag on the overall performance of the s&p 500, but there are some names where investors are really starting to nibble at with regard to at least calling maybe for a short-term bottom in stocks. two refining companies here up about 10%, 11%. what's interesting is valero it's riding an 11-day winning streak. and tesoro is up 12 out of the last 13. there's short-term momentum going for these refining names. and the single best performing s&p energy stock

former shell president john hofmeister predicts the price of a barrel of oil will double and that willse lead to higher gas prices. he says the industry is shutting down drilling rigs and that will affect oil production. gas prices are up slightly from last week. aaa reports the average is 2.40 for regular in the district and maryland it's 2.10. the average is 1.95 a gallon in virginia in west virginia $2.15 on average for a gallon of regular. >>> you have a few more days to renew your expiring driver's license, i.d. cards, vehicle registration all that stuff in virginia. the commonwealth's department of motor vehicle says there was a computer system outage on saturday that forced them to close their offices to are a short time. you now have until february 7th to renew those items without penalty. the dmv says it told police about the extension. that's a good thing. >>> many people avoid trying yoga because it looks impossible back bends, head stands and more and forcing yourself into a yoga pose is never a good thing. our yoga expert kim weekes joins us this morning with a look at how

. ♪ let's stay on or you'll and bring in john hofmeister. still sticking with it? >> yes, i am.ill see oil bounce around a little bit. i do not know if we are at the bottom yet. it will bounce around a little bit. i think what a lot of people are missing is the amount of extra oil is not dairy much. a little over 1%. >> the supply is only a million barrels. >> you get up rapidly by decline. slowing down production. it is happening as we speak. if we go into fall, we see crude supply short of the demand. then we are back into the skyrocketing prices all over again. they do a great job of cutting cost. you do not put those pieces back together again quickly when you come out the other side. a lot of people are looking at the saudis and say this is exactly what they want. it was all part of the plan for the saudis to keep that price going down and down. they will wipe out a bunch of u.s. jobs. >> it is a worldwide phenomenon that companies are cutting costs because they have to. the oil price does not justify continuing on the oil path. the capital reduction we heard about recently

energy security council whose members include ex-shell ceo john hofmeister, alan green span former secretary of state george schultz, former governor and director of the department of homeland security, tom ridge former assistant -- former secretary of the navy john laymen and other associated washington heavyweights. ann's words carry weight as well as knowledge, in other words. and it's my great pleasure to introduce you and to present you, ann coran. >> i'm glad to be here. thank you for argue niezing this event. i'm going to talk about where we were, where we are and where we're headed and what kind of black swans we need to consider as we think about the oil market and more importantly the impact of oil strategic importance on the global economy and on gio politics global security at large. we may think oil prices are how right now, but if we go back to 2001, if we think about what prices looked like before september 11th they were under $30. so they're not really that low right now. they're just low in relation to $147 barrel and $100 oil that we've gotten used to. and it's very import