SKY-HIGH: Gas prices SOAR amid global supply challenges

>> IT'S TERRIBLE ABOUT THE PRICE. OF GAS PRICES, BUT OVERALL. THOUGH I KNOW IT'S POLITICALLY. DIFFICULT, BUT THIS IS SUCH AN. IMPORTANT MISSION WHY WE'RE. THERE IN THE FIRST PLACE. PETER: ENERGY MARKETS ARE. FEELING THE HEAT WITH OIL PRICES. REMAINING ELEVATED AMID ONGOING. CONCERNS ABOUT THE GLOBAL. SUPPLY. JOININGS NOW ON SET, OIL AND GAS.

ASSOCIATION PRESIDENT TIM YOU. WART. TIM -- STEWART. IT HURTS TO FILL UP A GAS TANK. IN THIS COUNTRY RIGHT NOW. I'VE GOT TWO SUVs NOW, EXPECTING A THIRD BABY. I DON'T WANT TO LOOK WHEN I PUT. THE CREDIT CARD INTO THE. MACHINE. NOW OVERNIGHT WE SAW UKRAINE. BLEW UP A RUSSIAN REFINERY EVEN. THOUGH ALL THAT RUSSIAN OIL IS. SANCTIONED. IS THIS GOING TO MAKE THE PRICES. GO UP EVEN MANUFACTURE IN. >> OH, I GOT THE TEXEXT FROM THE. WIFE ON THURSDAY AT COSTCO.

FILLING UP, SHE SAID YOU'VE GOT. TO DO SOMETHING ABOUT GAS PRICE-. [LAUGHTER]. SO I FEEL IT AS WELL. YOU KNOW, IT'S INTERESTING, I'VE. NEVER SEEN IT LIKE IN THE 30. YEARS I'VE BEEN WORKING IN THIS. INDUSTRY. AND, YES, ANYTIME UKRAINE TAKES. AN ACTION IN RUSSIA, IT'S GOING. TO HAVE SOME IS IMPACT ON THE. DIESEL MARKET AND THE GASOLINE. MARKET GLOBALLY. IT'S NOT THAT WE'RE RUNNING OUT. OF OIL. WE'RE RUNNING OUT OF REFINING. CAPACITY, IS REALLY WHAT IT IS. WE'VE RUN OUT OF REFINERIES, PARTICULARLY HERE IN THE U.S. AND I THINK WHAT WE'RE FEELING. HERE IN THE U.S. IS THE IMPACT.

OF PROBABLY 25 YEARS OF POLICIES. THAT HAVE SAID WE CAN RESTRICT. OUR REFINING CAPACITY BECAUSE. WE'LL ALWAYS GET IT FROM. SOMEWHERE ELSE, PARTICULARLY. EUROPE. THAT'S THE DIRECTION THEY TOOK. YEAH, UNFORTUNATELY, I THINK. ANYTIME THERE'S ADDITIONAL. ACTION LIKE THIS, IT'S GOING TO. HAVE IMPACT AT LEAST FOR THE. SHORT TERM. PETER: YOU MENTIONED THE. REFINING CAPACITY HERE IN THE. U.S. CAN YOU EXPLAIN TO OUR AUDIENCE. AND TO ME -- BECAUSE I FORGET. THINGS LIKE THIS -- WHY IT IS WE. HEAR SO MUCH FROM THE WHITE. HOUSE ABOUT HOW THERE'S ALL THIS.

OIL UNDER OUR FEET AND WE'RE. GETTING RID OF PERMITS SO THAT. WE CAN DRILL, BABY, DRILL HERE. AND THEY'RE DOING IT, BUT THAT. IS HAVING NO IMPACT ON BRINGING. THE PRICES DOWN? THAT OIL IS NOT GOING INTO. PEOPLE'S GAS TANKS HERE? WHY IS THAT? >> WELL, IT DID UNTIL FEBRUARY. WHEN WE TOOK SOME ACTION. OVERSEAS, CORRECT? WE KID HAVE PLENTY -- WE DID. HAVE PLENTY. BUT WHAT HAPPENED IS YOU'VE SEEN. THIS ACTION PARTICULARLY WITH. RUSSIA WHERE RUSSIAN REFINING. CAPACITY IS DOWN SIGNIFICANTLY. AND THAT'S HAD A GLOBAL IMPACT.

DIESEL IS A GLOBALLY-TRADED. COMMODITY. THAT HAS AN IMPACT ON CONSUMERS, SO ANYTIME SANCTIONS OR ANYTHING. ELSE TAKES PLACE, WE'RE GOING TO. FEEL THAT. AGAIN, THE U.S. IS IN A MUCH. BETTER SITUATION BECAUSE, TO THE. ADMINISTRATION'S CREDIT, YES, WE. ARE NOW PRODUCING AT THE HIGHEST. LEVELS WE EVER HAVE. WE'RE ALSO REFINING AT THE. HIGHEST LEVELS. WE'RE RUNNING AT 97% CAPACITY. ALL ACROSS THE UNITED STATES. WE'RE ACTUALLY KIND OF RUNNING. WITH THE CHECK ENGINE LIGHT ON. BECAUSE SORT OF -- SHORT OF THE. GLOBAL DIESEL SHORTAGE, WE WOULD.

HAVE TAKEN SOME REFINERIES'. CAPACITY DOWN TO RETOOL FOR. WINTER BLENDS AND/OR FOR. SEASONAL MAINTENANCE. WE HAVEN'T BEEN ABLE TO DO THAT. UNFORTUNATELY, THE U.S. CONSUMER. IS STILL FEELING THE ACTION OF. GLOBAL UNCERTAINTY RIGHT NOW. PETER: THE PETROLEUM ANALYST ON. SOCIAL MEDIA KNOWN AS GASBUDDY. HAS POSTED OVERNIGHT, MY LIVE. FUEL PLOT SHOWING AMERICANS HAVE. NOW SPENT $70 BILLION MORE ON. FILLING UP WITH GASOLINE SINCE. MARCH 1ST VERSUS THE SAME PERIOD. A YEAR AGO, AND 44 BILLION MORE.

ON DIESEL. THAT IS A TOTAL OF $114.2. BILLION MORE SPENT OVER THIS. TIME. HOW MUCH LONGER IS THAT. SUSTAINABLE? >> NOBODY WANTS TO BE PRODUCING. A PRODUCT THAT THEIR CUSTOMERS. CAN'T AFFORD TO BUY. AND THAT'S HOW WE FEEL, PARTICULARLY IN THE SMALL OIL. AND GAS PRODUCERS WHICH IS A LOT. OF MEMBERS OF THE U.S. OIL AND. GAS ASSOCIATION. THIS IS UNCOMFORTABLE FOR. EVERYBODY. IT'S UNCOMFORTABLE FOR US. BECAUSE WE ARE PRICE SENSITIVE. AS WELL. WE'RE PUTTING DIESEL IN OUR.

TRUCKS THAT WE HAVE TO PAY FOR. AS WELL. IT IS NOT, IT IS NOT SUSTAINABLE. FOR THE LONG TERM, OBVIOUSLY, BECAUSE DEMAND DESTRUCTION. STARTS TO TAKE PLACE. YOU HAVE SEEN THAT IN THE. AIRLINE INDUSTRY WHERE AIRLINES. ARE CUTTING BACK ON UNPROFITABLE. OR LESS PROFITABLE ROUTES. WE JUST HAVE TO PARE BACK. SO YOU'RE GOING TO SEE IMPACTS. ON THE ECONOMY. THE BIGGEST FEAR I COME FROM. PERSONALLY IS THE IMPACT ON THE. AG INDUSTRY. FARMERS ARE PAYING A LOT FOR. DEALS, THAT'S GOING TO HAVE AN. IMPACT ON FOOD PRICES GOING. FORWARD. PETE PARTY AND IN THE NEW FOX.

PO.