Gas prices slated to come down? That's the report. Dennis Wassung, a portfolio manager explains why.

Drive by the -- check out the price of gas and idiocy is still look cringe even though as we've talked about oh bomber and he himself said that as pretty good week for the country. Pretty good week for his presidency. Pricing gasoline remains hovering over rusting oil Bigelow drop in Italy but it should it I'm not sure how long it takes for that if that weren't actually stay that way how long it takes at the marketplace and so joining us is Dennis loss on. Is a portfolio. Manager has all sorts of experience in and around markets and investments growth equity emerging markets alternative energy and technology. And talk to him a little bit about these gasoline prices Dennis Ross on thanks for joining us Russia for joining -- night. On AM 680 WRKO. -- Well listen you know what's on the mind of everyone about listeners it's four dollars a gallon give a -- a couple of pennies they see a big chunk of the money going out the door and a wondering. How long is this going to be with us is it moralist a permanent condition. All those all those different things can appear at the future Faris and tell us what's gone on.

Sure I give it via -- take -- we do lot of research on energy cap it and that is published report on energy topic. And specifically -- gas prices they're following oil prices. As you probably noted is that -- ago we had a 114 dollars a barrel for oil but a week ago rise up from about sixty dollars pro week. I don't know about a year ago but it's still below where we peaked back in 2843. Dollars a barrel. Well we've seen is -- as well we have to fort dollars a gallon here gas. And we -- is actually a little bit of but downdraft in oil prices last week gasoline hasn't come back you'd probably be a little bit of of the reduction in gas prices coming shortly but now. Oil up again this morning about three dollars a barrel I think it's just. The global supply and demand environment for oil. Today is not favorable for gas gasoline so essentially. Places like China and India. Lots of growth in that the use -- oil. And that is going to to make. Achieving the optimal supplies which would go bust.

So the price of oil is being pushed by increased demand that runs counter to even an economic downturn because you talk about demand where. Populations are changing their behaviors big populations.

Now exactly but that's more in the developed world the places like United States where four dollars a gallon it is that's quite a bit. People are starting to curb their usage to about things like hybrid vehicles to people getting a lot of press. A -- they're still just a very small fraction. Market. But in places like China and India you have populations that are buying cars for the first time. And as a result those very fast growing economy users start to drive that demand. And so when it comes to be in the broader use of oil it's growing at probably one and a half to 2% a year right now. And the producing oil fields out there estimated the client call it between sports expert said he you're right now you -- I don't find new oil and that's -- These traditional energy resources that. They get a lot of press and we need to go find more posts and try to offset some that supply decline.

And certainly going to talk about it. Dennis -- told time and again that but you know you'll see an out go. About a new field that's been discovered in North Dakota Ross upn -- burger. -- told that the era of huge new stores open up in Alaska marine and offshore. President goes Donna Brazile a few weeks ago talked about cutting deals with Brazil -- a lot of their royal what you -- a sense of available. Domestic supplies at eighteen reasonable price.

right now the opportunities for increased domestic US base North America -- oil production. It is it is positive that bad and -- and -- the big drivers behind that is that innovative technologies that have come into the market that it that it enables. To get oil out of the ground at places that you mentioned or soda please access square. We've enjoyed for oil for forty or fifty years but until recent technologies come along. That's some of these areas have been on taps and imagine North Dakota and -- pocket oil field. There's four billion barrels that's billion with a B -- barrels of oil. That are now accessible because of the technologies so. You know President Obama a couple of weeks ago about that he wanted that decline decrease our. Our. -- oil import tool by a third of the next ten -- to get there is to restart and passed to production. And I think that is -- technologies represent big opportunities for. Domestic oil companies that wrote the production here. In those are present but that's not -- like me.

Dennis was -- as our guest he's a portfolio manager Cabot money management how about natural gas we've future reserves in this country.

We do and that's another interesting topic. We in the price of natural gas still -- via the opposite direction. Oil at near record lows of last. And a lot of that -- with the fact that we have. Org and we found producing at a record amounts actual cast in the United States and for the word -- Wrapped around and abundant energy source here and it's. And you're you're seeing a big pushed tribes -- Vehicles over to natural gas -- not that's an interesting topic. Bristol isn't that happening in the legislation in congress is trying to make that happen. But that is certainly one avenue to decreasing our our reliance on foreign oil and I -- hybrid vehicles electric vehicles I think it's important that. Even if we adopt a lot of these technologies and that's -- Howard. Vehicles or hybrids and electric. We're still gonna need -- lot of oil for a long time and is gonna make smoke and our needs today the US. Owns 20% of the world's daily oil. At nineteen point three barrels oil -- day. United States. Imports that that. That there's a lot of opportunity. To wrote some sort.

Dennis we have a caller wants to talk to you bought your NWR -- Dennis swan song. --

I good morning good morning Bob I've been in the environmental still helping -- power plant that the permit. Like that yeah. I'm shocked in that offensive with yet but -- explained while and one President Obama says we need to protect. Saudi Arabia. Actually he goes to Brazil has that we're gonna give them technology -- money the fight there I think Brazil before country the only differences. Oil companies from Saudi effect. If -- the Republican.

what are you upset about the heard Dennis that your year is he advocating some policies that.

policy that Obama is helping out a few weeks ago or a week ago. Mobile shell spent four billion dollars or oil exploration in in a last. He EPA has shut down that development on the there's a big push now Matthews at the highest elector rate in the country. And they're pushing everything Obama is we need. Renewable energy window on the thing.

You'd think Nancy answer Windmills. Don't. Oh what do you think -- OK I don't think I.

I believe -- is -- a lot of I've worked with the EPA that it says the 1970. The policy now is they shut down exploration here one of the things are is also work we've been about a payment for also for.

So right here you -- it just I don't know Clara what you support --

The US EPA opposing the lower ozone standard -- the sixty parts per billion were a few years ago with eight. If it does that 95% of the country is going to be not a payment for all so what that means -- they measure air air violations if they.

You know we in do we get the draft they want to control the economy through this. Dennis what's your reaction or by the senate.

Where I get my reaction is is as a couple of points first. That we need it to do a lot of things a lot of areas whether alternative energy that's solar wind. Actual gas at a transition over to actual gas powered vehicles. And into the notion of Brazil. Thing. Right now we get such reliance on Saudi Arabia and in the Middle East and I think it would get as though it's it's very important country that's going very fast computer it -- And they -- in the middle expanding their oil production dramatically. I think it's an exploit diversification technique to -- well it -- from port O and editor that's what we focus on here. I can minimize your risk overtime if you can import oil from multiple places. I don't think that that. -- has been need us to to grow our domestic oil production either. Comment about people not export is in Portland that it states. That we can't we just simply can't get there without knowing that.

A quickly Dennis the -- you mentioned this this new shale technique which is costing at a barrel on the ground there call that. Because the saudis may be a -- And or are we pan a lot more now on the shale technique.

Certainly more expensive digital sports but the reserves underground are so large that. That cost is very effective. Positions. Time and I wanna say that. Heavy -- member -- but you're looking at. You know 3040 dollars a barrel in May is an economical price even. If we get down to those which channel it's going to. It's still. Are effective for people. Out of pocket but please trail. I don't know that he's made dollar.

That's what yeah it's hard to imagine I mean but even if it is at forty way in which you just mentioned Dennis I love the idea or keep in those dollars circulating in and around America or American workers American companies is supposed to just. A tech victims if filled with the oil in my mind instantaneously as -- tank of policy notes. American dollars going back over the Middle East it's it's it's just a lousy. Arrangement for us for media and other reasons Dennis was -- thanks Serbian Harry's a portfolio manager cap on Cabot money management.