Egypt's Second Revolution Effects Crude Oil

John Hofmeister, former Shell President and Citizens for Affordable Energy CEO, appeared on CNBC's Squawk Box Friday morning to discuss how the recent revolution in Egypt effects

prices. Crude oil has been high this week, and is currently just below $102 a barrel. "Traders always look for the opportunity…to make money, and if there is something unsettling in the environment, they're gonna pounce on it. Because even if it's a day or two, there's a chance to make some real money. And that's what they do. That's what they love," said Hofmeister. "They want to make sure that molecules get from where they sit to where they're going to. And if they can convey or is world events convey some kind of possible disruption, even if there is no disruption, it's still a money-making opportunity." Egypt isn't a major oil producer. In fact, they import. Hofmeister said that any pipelines that are nearby wont be impacted, and that there really was no disruption to cause the price increase. *jokingly made the strong point that "there's only a buyer if there is a seller, and there's only a seller if there is a buyer."

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Hofmeister bordered on calling the internal industry actions "mischievous," but refrained, saying that "they really do move molecules, we need them to move molecules, but it's opportunity. And who doesn't want opportunity?" Hofmeister did however warn that we're "on the verge…of moving to a new higher institutional level on the price of oil because the world cannot produce more, much more, than it's producing today." Hofmeister then preached the urgency of transitioning to natural gas alternative fuels as if it's the only another option available, saying that if not, "We will face 120, $140 [per barrel] oil until the economy sags."