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The Situation Room
CIA Officer Fired For Leaking To Media; Iraqi Shiite Bloc Chooses Person For Key Role; Gas Prices Soar; President Bush Meets With Arnold Schwarzenegger; New Orleans Set To Hold Election
Aired April 21, 2006 - 17:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
WOLF BLITZER, CNN ANCHOR: To our viewers, you're in THE SITUATION ROOM, where new pictures and information are arriving all the time.
Standing by, CNN reporters across the United States and around the world to bring you today's top stories.
Happening now this hour, an apparent -- an apparent breakthrough in Iraq that could affect plans for a U.S. troop pullout.
It's 1:00 a.m. Saturday in Baghdad, where a new man has been tapped to be prime minister. Will the Iraqi parliament give its blessing? We'll have a report on some critical new developments.
Also this hour, sticker shock at the pumps. How high will gas prices go and consumer anxiety, as well?
It's 5:00 p.m. here in Washington, where our correspondents are watching prices and reports of some gas shortages on the East Coast.
And two of the biggest names in the Republican Party together again.
It' 2:00 p.m. in California, where President Bush has teamed up right now with Governor Arnold Schwarzenegger. We'll have a live report on their travels and their sometimes rocky relationship.
I'm Wolf Blitzer. You're in THE SITUATION ROOM.
We're following a developing story this hour as well. A CIA officer fired from the agency for supposedly leaking classified information to the news media. This comes in the middle of several high-profile leak investigations, some reaching all the way to the White House.
Our national security correspondent, David Ensor, is joining us with the latest -- David.
DAVID ENSOR, CNN NATIONAL SECURITY CORRESPONDENT: Wolf, the individual was fired Thursday for leaking classified "operational information" to a journalist, according to CIA official Michelle Neff (ph). The action came after the person, who's a man, sources tell CNN's Kelli Arena, failed a polygraph test being given to a wide range of intelligence officials as the government tries to figure out who leaked two major stories, stories for which only days ago the journalists who wrote them won Pulitzer Prizes. And the man has apparently confessed.
The story in question here, sources say, was by Dana Priest of "The Washington Post," and it told about the CIA using "secret prisons" in Europe to hold and interrogate top al Qaeda prisoners, people like Khalid Shaikh Mohammed, the mastermind of 9/11.
And the other story by Jim Risen of "The New York Times" that revealed a secret program authorized by President Bush under which conversations with suspected terrorists are monitored without a court warrant, even if one end of the conversation is here inside the United States.
Now, CIA officials say the leak investigations are just beginning and there may be much more to come.
Here's how CIA Director Porter Goss described the situation in recent testimony.
(BEGIN VIDEO CLIP)
PORTER GOSS, CIA DIRECTOR: We also have an investigation of finding out what leakage, if any, is coming out of that building, and I'm afraid there is some coming out. I also believe that there has been an erosion of the culture of secrecy, and we are trying to re- instill that.
On the external side, I've called in the FBI, the Department of Justice. It is my aim and it is my hope that we will witness a grand jury investigation with reporters present, being asked to reveal who is leaking this information. I believe the safety of this nation and the people of this country deserve nothing less.
(END VIDEO CLIP)
ENSOR: Justice Department officials tell CNN's Kelli Arena they are initiating an investigation into whether the accused leaker should also face criminal charges. You may remember that another reporter, Judy Miller, former of "The New York Times," spent 62 days in prison to avoid identifying her source, who turned out to be Scooter Libby, the vice president's then chief of staff -- Wolf.
BLITZER: David, "The Washington Post" reporter, Dana Priest, broke that story about those so-called secret prisons in Europe. James Risen and Eric Lichtblau wrote the story about the warrantless surveillance in "The New York Times." All three of them have been given Pulitzer Prizes for their work.
Is there any indication at this point that the government already has decided to go after them, to bring them before a grand jury to try to get more information about their sources?
ENSOR: So far, Wolf, only what you heard Porter Goss say in that sound bite. If it does happen, though, this will have serious implications.
Certainly, intelligence officials want to see leaks punished. They want to see leaks on classified matters punished. But if those reporters are brought up before a grand jury and forced to reveal their sources, that could have a severely chilling effect on the amount of information that Americans have, not only about their intelligence community, but also about other parts of the government -- Wolf.
BLITZER: Thanks for that.
David Ensor reporting.
There's another development happening right now as well. Iraq may -- may be on the verge of a major breakthrough. A Shiite bloc has chosen a new person for a key role in Iraq, one that could finally bring about a national unity government in Baghdad.
CNN's Ryan Chilcote is in Baghdad. He's joining us with details -- Ryan.
RYAN CHILCOTE, CNN CORRESPONDENT: Wolf, the United Iraqi Alliance, that is the religious Shiite alliance that holds the majority of seats in the Iraqi parliament, has announced that it will put forward a new candidate for the post of prime minister, withdrawing its previous choice, that the candidacy of Ibrahim al- Jaafari.
Now, Mr. Jaafari is the acting prime minister. He is an individual that the Sunnis, the Kurds and the secular Shiites have said that they simply can't work with. They have called him a stumbling block on the road to building a government of national unity, and they have long called for him to step aside.
That is what has happened today. The new candidate, Jawad al- Maliki, was a senior adviser to Mr. Jaafari. He fled Iraq in 1980 under Saddam. He returned after Saddam's fall, and he is now the candidate that will be put forward in front of the parliament on Saturday.
Now, the question, of course, is, will he get the support of all the other political parties? And the other, of course, bigger question, is, is he an individual that can put the growing insurgency and sectarian violence here in Iraq, can he get it under control -- Wolf.
BLITZER: Ryan, thanks.
While not calling it a breakthrough, the White House is reacting positively to the news of a new Iraqi prime minister candidate. Today, a senior Bush administration official said -- and I'll quote -- "This is good news." The official adding, "Hopefully this means the government moves forward."
We shall see in the coming days.
Also happening now, serious problems at the pump. No matter where you are in the United States, gassing up today could be an eye- opening experience. Some stations on the East Coast are actually closed. They've run out of gas while refineries switch from their winter formula to the new summer one.
And from coast to coast, prices are literally soaring. The new average is now up to $2.86 a gallon. That's up 14 percent alone from last month. And don't look for the prices to drop any time soon. Crude oil hit another record high today, topping $75 a barrel.
CNN's Chris Lawrence and Ali Velshi are standing by. They've got some more on this.
Let's begin with Chris -- Chris.
CHRIS LAWRENCE, CNN CORRESPONDENT: Well, Wolf, when prices went up last year, you could at least say, well, it was all that hurricane damage in the Gulf of Mexico. Now it's a lot harder to come up with a single answer for all the outrage.
(BEGIN VIDEOTAPE)
LAWRENCE (voice over): High gas prices we've had, but more than 3 bucks a gallon?
UNIDENTIFIED MALE: It feels like a punch in the gut. It really does.
UNIDENTIFIED FEMALE: I think it's painful. It's really painful.
LAWRENCE: Tanks are full, wallets are empty.
UNIDENTIFIED MALE: I haven't been able to really fill it up that much because it pisses me off.
LAWRENCE: Can simply supply and demand account for all this?
DAVID SANDALOW, BROOKINGS INSTITUTION: Supply and the demand really operates globally when it comes to oil. So, if we've got tight markets in Asia, that's going to affect the price here.
LAWRENCE: So it's China's fault for driving more cars? Not entirely.
SANDALOW: Then you combine that with what's happening in Nigeria and Iran right now, and the markets are a bit spooked.
LAWRENCE: So, instability in those countries takes oil off the market.
JOHN TOWNSEND, AAA: The truth of the matter is, Nigeria accounts for five percent of the crude that comes to the United States. But does that factor into the 65-cent increase we've seen?
LAWRENCE: AAA's John Townsend says the real problem is speculators who keep telling us how much worse it's going to get. Think of the housing market. If all you hear is, home prices will continue to skyrocket, sellers can force buyers to pay more.
TOWNSEND: Well, if I say the gasoline prices are going to $4 a gallon, like we've heard this morning on some networks, then buyers say, that's the new hot commodity. And so, where real estate was the hot commodity a year ago, or two years ago, now it's gasoline.
(END VIDEOTAPE)
LAWRENCE: Now, at least two congressmen are calling on the Federal Trade Commission to investigate the major oil companies. Senators Dorgan and Schumer want to make sure that the companies aren't intentionally keeping refinery capacity low in order to keep prices high. Some of those companies say the senators need to understand that they are still recovering from last year's hurricanes -- Wolf.
BLITZER: Chris, thanks.
Let's bring in our Ali Velshi. He's got some more now on the shortages that are forcing some stations on the East Coast to close.
What is going on, Ali?
ALI VELSHI, CNN CORRESPONDENT: Hey, Wolf.
About 20 or so stations here on the East Coast, at least that we know of, are out of gas. Now, before anybody starts to panic, this is not a problem with gasoline supply. It's not the '70s all over again. But drivers are getting hit by a one-two punch.
First of all, it's the time of year that we sometimes see spot outages because we switch from what is called winter to summer gas. Summer gas is cleaner burning.
Now, the additive that the gasoline industry is being forced to switch to contains corn-based ethanol instead of what was called MTBE. MTBE has been found to be a contaminate.
Now, the Federal Energy Policy Act of 2005 gave the gas industry nine months to make the switch. That happens on May 6th.
The feeling from the companies we've spoken with, they've said that it's like the government asking them to switch to the metric system in that nine months. In order to make the switch, retailers have to drain down and clean their tanks. So do the distributors.
They've got to remove all the water, because ethanol can't come into contact with water. And then they've got to install filters on their pumps.
Now, on top of that, getting ethanol to your corner station isn't easy. MTBE, the old additive, could be sent up the pipeline. Ethanol has to be sent separately from the Midwest by train or by truck. This all takes more time and more money, potentially 15 cents a gallon more each time you fill up. The deadline for changing over to ethanol is May 1st, but the shortages could last longer because the whole supply chain has to catch up.
Now, all of this, including the fact that you mentioned, crude oil prices breaking $75 a barrel, that has caused a jump, that's caused some problems in stocks.
(STOCK MARKET REPORT)
BLITZER: All right. What a week it's been on the markets. Thanks, Ali, for that.
Let's go up to New York again. Jack Cafferty's got "The Cafferty File" -- Jack.
JACK CAFFERTY, CNN ANCHOR: You know, one of the things that's driving gasoline and oil prices, according to -- funny you should mention -- one of our guests on THE SITUATION ROOM, is speculators and hedge fund managers on Wall Street who are buying and selling options in this stuff and pushing prices higher.
There was an allusion to the real estate market being the last hot craze. Well, commodities have been very much in play on the part of Wall Street hedge fund managers for a while now, and that includes oil and gasoline.
You can you learn more on "IN THE MONEY" this weekend.
"A Day Without Immigrants," that's what some people are calling the next big protest set for May 1st over illegal immigration. The organizers want a national work stoppage and student boycott on May 1st. Organizers want to show how important immigrants are to the U.S. economy, and they also hope that the empty classrooms will prove how immigration reform affects future voters.
But not everybody is convinced it's a good idea, including me. The protests could make immigrants look anti-American, could annoy the public, and could alienate lawmakers, or all of the above. Not to mention the fact that thousands of people that choose to march in the streets instead of going to work could get fired.
Instead of a full boycott, some support a protest after school gets out and businesses close. Others call for things like voter recruitment and petition drives.
Here's the question: Is a May 1st boycott a good way for immigration activists to get their point across?
E-mail your thoughts to caffertyfile@CNN.com or go to CNN.com/caffertyfile.
I wonder if we will get letters from Lou Dobbs, Wolf. What do you think?
BLITZER: If you run into him in the newsroom over there, ask him what he thinks.
CAFFERTY: I know what he thinks. BLITZER: Thanks, Jack.
Up ahead, two Republicans, both down in the polls, both in need of support. Will a joint appearance help either or both of them? We will tell you about the California connection between President Bush and Governor Arnold Schwarzenegger. They're on the ground in California together right now.
And she's the lone woman whose voice was heard around the world. One day after she shouted at two of the most powerful men in the world, there are now new details in the case of the White House heckler.
And ready or not, New Orleans is getting ready for its first municipal election since Hurricane Katrina, but will the voters make it to the polls. We'll have a live report from the city.
Stay with us.
(COMMERCIAL BREAK)
BLITZER: Right now, President Bush is in California for a four- day swing through the West Coast. On the president's agenda are immigration, Iraq, politics, and a meeting with the California governor, Arnold Schwarzenegger.
Our White House correspondent, Elaine Quijano, is traveling with the president. She's joining us now live from San Jose -- Elaine.
ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: Good afternoon to you, Wolf.
President Bush is beginning his trip with a visit here to Silicon Valley. At this hour, he's taking part in a panel discussion here at Cisco Systems to talk of his American Competitiveness Initiative. And perhaps you can see, joining him for this discussion, California Governor Arnold Schwarzenegger.
Now, Schwarzenegger actually greeted President Bush at the airport. He rode over to this event with the president. But there has been a point of tension in recent days.
In fact, just two days ago, Governor Schwarzenegger had some sharp words, really, for federal officials about the badly-needed repairs for California's levee systems. Now, what we wanted was a federal disaster declaration for those levees. Instead, today, word of a presidential directive to allow the U.S. Army Corp of Engineers to help California fix the levees.
Now, the pointed remarks, though, really illustrating the fine line that Governor Schwarzenegger is having to walk during President Bush's visit here. The president's approval ratings, of course, in the 30s, and the governor, himself, of course, campaigning for reelection in November, in this Democratic-leaning state. Certainly, a point of tension between these two leaders -- Wolf.
BLITZER: Elaine is on the scene in San Jose.
Thanks, Elaine.
Surely, during his trip to the West Coast President Bush will be the barer of what he considers to be some good news. And yet, at least on one positive issue, there are serious questions of whether the president's message is actually getting out.
Let's get some more now from our senior analyst, Jeff Greenfield, in New York -- Jeff.
JEFF GREENFIELD, CNN SR. ANALYST: Wolf, it's a question that's been troubling Republicans and delighting Democrats for months now. Why isn't the president getting credit for good economic news?
Unemployment's at 4.7 percent inflation is under control, the economy is chugging along. As they say in "The King and I," there's a puzzlement. Or is it?
(BEGIN VIDEOTAPE)
GREENFIELD (voice over): Here's the most obvious villain: the price at the pump.
UNIDENTIFIED MALE: You've got nothing to do. You still got to go to work, you still got to commute. So...
GREENFIELD: Several times a week, most Americans get an unwelcome, first-hand dose of bad economic news. One recent survey reports that a big majority of Americans see gas prices as a genuine hardship. But that is not the only source of pessimism.
On a regular basis, we're seeing news that once-powerful companies, major airlines, General Motors, among others, are looking for deep cuts in pension and health benefits. These stories strike at two major enduring sources of concern: will I have enough to live on when I retire? And will illness wipe me out financially?
Not exactly a source of good feelings.
But the fundamental reason for pessimism may lie beneath the surface numbers. For most Americans, the good news on growth, on inflation, on unemployment simply have not translated into better times for them.
Between 2000 and 2005, says the Economic Policy Institute, real wages of the average work worker -- that is, the worth of what they earn once inflation is taken into account -- actually fell by 1.3 percent. Even if you fold in benefits, health care and the like, the average worker actually fell behind in the struggle for better living standards.
Real gains were confined to those at the top of the earnings pyramid, with those at the very top making huge gains. This is a big contrast with the late 1990s, when a tight labor market and an explosion of new businesses made the story brighter for just about everyone.
For instance, in 1998, real average wages for adults who dropped out of high school, the least advantaged of the workforce, rose 5.9 percent, their first real gain in almost 20 years. Not so incidentally, the optimistic "good times are here" feeling was one big reason why President Clinton survived impeachment...
WILLIAM J. CLINTON, FMR. PRESIDENT OF THE UNITED STATES: And I tried to give as good as I got.
GREENFIELD: ... just as the surge of bad economic news in 1973 and '74 helped doom Richard Nixon as the tide of Watergate rose.
(END VIDEOTAPE)
GREENFIELD: So, even if the economic news hadn't been overshadowed by Iraq and by Katrina, there are enough economic clouds on the horizon to make it tough for the public to see blue skies ahead -- Wolf.
BLITZER: Jeff Greenfield, thanks.
Coming up in THE SITUATION ROOM, shoot to kill? In Kansas, officials say they foiled a plot by students planning a shooting spree against teachers and fellow students. And officials say they were partly tipped off by a posting on a popular Web site, MySpace.com. Now MySpace.com responds.
And if you build it, will they come? Election officials are asking that question in New Orleans. They are wondering if voters will turn out to the newly-built polling places in the first election since Hurricane Katrina.
You're in THE SITUATION ROOM.
(COMMERCIAL BREAK)
BLITZER: Carol Lin is joining us from the CNN Center in Atlanta with a closer look at some other stories making news.
Hi, Carol.
CAROL LIN, CNN ANCHOR: Hi there, Wolf.
A developing story we've been following. The woman who heckled China's president at the White House yesterday faces a federal misdemeanor change.
Wenyi Wang was charged in federal court today with harassing a foreign official. Now, if convicted, she could get up to six months in prison. At a White House ceremony yesterday, Wang accused the Chinese president of persecuting a banned religious sect.
This is a live picture outside the U.S. district courthouse in Washington. And we are standing by for Ms. Wang and her attorney to speak to reporters. If they stop, we're going to bring it to you live.
In the meantime, there has been a legal blow for drug maker Merck today. A Texas jury has found it liable in the death of a man. He had a fatal heart attack a month after he started taking the painkiller Vioxx back in 2001.
Jurors awarded the man's family $32 million in damages. Now, Merck plans to appeal. More than 11,000 lawsuits have been filed against Merck since it withdrew Vioxx from the market in 2004.
Five Kansas teenagers are expected in court today. Authorities say the boys planned to shoot fellow students and employees at Riverton High School yesterday. They were arrested hours before the alleged attack was to take place.
Authorities say it was timed to coincide with the anniversary of the 1999 Columbine High School massacre, Wolf. They found information on a Web site, MySpace.com, that tipped authorities off.
BLITZER: That's pretty scary stuff, Carol.
LIN: Yes, you bet.
BLITZER: Thanks.
Our Internet reporter, Jacki Schechner, is, in fact, standing by with more on that plan that unfolded on that popular social networking site, MySpace.com -- Jacki.
JACKI SCHECHNER, CNN INTERNET REPORTER: Wolf, MySpace has been in the news a lot lately over concerns that it's being used by sexual predators, but there's plenty of kudos online today for MySpace. People saying, because the information was posted online, that MySpace helped save the day.
Now, we spoke to MySpace today, and they say they wont talk about this particular incident because it is ongoing and it's of a sensitive nature, but they reiterated that they like their community of 72 million users to operate like a neighborhood watch, to report anything questionable to customer care or to law enforcement officials if it's appropriate.
They also talked today about their chief security officer, a man named Hemu Nigen (ph), who is going to start on May 1st. He has worked in security at Microsoft. He has a law enforcement background. And he's going continue to work to keep MySpace.com safe -- Wolf.
BLITZER: Jacki, thanks.
Coming up in THE SITUATION ROOM, getting the best deal at the pump. But do you know where to find the cheapest gas in your area? We're going to show you how to find out.
And in our 7:00 p.m. Eastern hour here in THE SITUATION ROOM, the president continues to confront low poll numbers and public concern over the war in Iraq. So how could President Bush get back on track? I'll ask three prominent and experienced Republicans, our political analyst, in the "Strategy Session."
That's coming up.
(COMMERCIAL BREAK)
BLITZER: Welcome back to THE SITUATION ROOM.
I'm Wolf Blitzer in Washington.
More now on the nationwide problems at the pump, shortages in the East and soaring prices nationwide.
And joining us here in THE SITUATION ROOM is John Felmy, the chief economist of the American Petroleum Institute and Robert Weissman, the editor of "Multi-National Monitor."
Gentlemen, thanks very much for joining us.
You know there's outrage right now, John, at the oil companies. The American Petroleum Institute represents the major oil companies here in Washington. The high costs, $75 a barrel right now. And they're blaming the oil companies, fairly or unfairly, not only for the high costs, but supposedly for gouging the American consumers at a time when ExxonMobil and other oil manufacturers are taking in record profits.
JOHN FELMY, AMERICAN PETROLEUM INSTITUTE: Well, it's you find that because what really is going on is a confluence of market events. First of all, we've got very tight world crude markets with prices at $75. We've got additional fuel changes in the United States that further add to costs of producing gasoline. And so consumers, unfortunately, just don't know these events are going on...
BLITZER: But they take...
FELMY: ... and how they affect them.
BLITZER: ... that they've had billions and billions of dollars in profits, the record profits that ExxonMobil is making and they note that $300 million package or even $400 million retirement package that the chairman of ExxonMobil took and they say what's going on?
FELMY: Well, the key is to put those earnings in context, because while those numbers are very large, the companies are huge. If you take and look at our profit rate as an industry, it's above average, but it's well below many other industries in the United States.
So it's important to put it into context in terms of what the industries are doing.
BLITZER: Here's what Senator Chuck Schumer of New York said the other day.
Listen to this.
(BEGIN VIDEO CLIP)
SEN. CHARLES SCHUMER (D), NEW YORK: The bottom line is it's not hurricane season, but the oil companies are just raising the price up and up and up. And the question is are they doing this dictated by the laws of supply and demand or is something else at work?
(END VIDEO CLIP)
BLITZER: He wants an investigation. A lot of people want an investigation and a lot of Americans, as you know, John, they're very, very angry at big oil.
FELMY: Well, we've been investigated dozens of times and exonerated virtually every time. Unfortunately, the senator said we're not in a hurricane, but we're still recovering from the hurricanes. We still have three million refineries that are out because of that. That has an impact on the capacity and how much we can produce.
Further, the senator also, in that part of that speech, said that he was comparing refinery utilization in 1998 with the price of gasoline, $1, and that's just an unfortunate comparison because the price of crude oil in 1998 was $12.
BLITZER: Go ahead, Robert.
ROBERT WEISSMAN, "MULTI-NATIONAL MONITOR": We've seen a major consolidation in the industry over the last decade. Any economic model tells you that's going to lead to higher profits and a higher rate of return for the remaining companies.
We do need an investigation, but we don't need just an investigation, we need a windfall profits tax to take some of this money gouged from the consumers away from the oil companies and invest it in alternative fuels and renewables so that we can get off the oil track.
BLITZER: Are you gouging the American public right now to make more and more profits for ExxonMobil and the other giant oil and gas companies?
FELMY: These are markets at work, because of high crude prices, because of worldwide situations we have to face. We don't set the prices there. The prices and the market conditions in the U.S. are very much driven by supply and demand and the fuel changes that we're experiencing this year that nobody knows about.
BLITZER: What could possibly justify a $300 million, $400 million package for the retiring chairman of ExxonMobil? You know that a lot of people are really angry about that.
FELMY: Well, I can't speak to ExxonMobil. It's improper...
BLITZER: But you represent them.
FELMY: It's a member of our company... BLITZER: You represent them.
FELMY: ... individual company matters. I will say take a look at that individual's return for their shareholders over the length of his service and you'll see it's quite good.
WEISSMAN: It certainly has been. The industry has earned a quarter of a trillion dollars in profits just for the top five companies since President Bush took office. It is an industry that's growing rich. It's growing rich at the expense of the American consumer. And it's time we do something about it.
BLITZER: Why don't you reduce the profit a little bit and let the American consumer have a break?
FELMY: Because we don't set the price. The market sets the price. Whatever comes out as a residual is earnings. And fortunately we have a profit rate that is about average. We get a fair rate of return for our companies in terms of all the risk we have to bear, in terms of everything we have to do to find, produce, refine and market petroleum products to consumers.
This is nothing more than a fair rate of return.
BLITZER: A fair rate of return?
What do you think?
WEISSMAN: It's a spectacular rate of return. As I said, it's more than 50 percent by the way the industry itself counts. It's costing consumers too much and it's -- we're losing an opportunity to take some of this money, invest it properly to get off of this oil track we're stuck on.
BLITZER: For a public relations purposes, would it make sense to reduce your profit level a little bit and let the American consumer, who's paying $3 a gallon now, take a -- get a break?
FELMY: Let me emphasize again, we don't set the price. The market sets the price for these products and the market sets the price for the crude oil. Whatever comes out is a function of the revenues return and the costs, and then you get earnings if you have a positive return on that.
So, saying that we can reduce the price just flies in the face of a market economy.
BLITZER: Is that true?
WEISSMAN: Not in a consolidated market. They actually are the price setters. The consumers are the price takers.
FELMY: That's not true. We have a sufficiently competitive environment in our industry that you have dozens of refineries competing for your business, tens of thousands of stations competing for your business. It's a highly competitive market. WEISSMAN: It's unimaginable that ExxonMobil couldn't change its prices to reduce its annual profits from $36 billion to, say, a healthy $25 billion if it chose to. But it's not going to. It's going to take the U.S. government to take some of that money away and properly invest it where it should be.
BLITZER: Are you scared that the U.S. government might intervene and start dealing with your profits?
FELMY: Well, I'm very...
BLITZER: If you don't -- if the oil industry doesn't do it on its own?
FELMY: Well, it's markets at work. But I am very concerned about the U.S. government doing very bad things like a windfall profits tax. That was enacted in 1980. It was a classic failure. And remember, again, these companies are not owned by space aliens. They're owned by millions of Americans. All you're talking about with a windfall profits tax is ripping off millions of Americans of their hard earned savings.
BLITZER: A lot of Americans own stock in ExxonMobil and the other oil companies. They're happy that their stock is going up?
WEISSMAN: Even more are buying oil and gas from the same companies and getting ripped off. It's hard to imagine the oil companies saying they fear government action. In fact, because they've spent so much money on campaign contributions, they're able to get more and more subsidies out of the government. It's time for the Congress to act, the president to act, reverse that trend and take some of it back on behalf of the American people.
BLITZER: Robert Weissman and John Felmy, thanks to both of you for coming in.
A good discussion here on some sensitive but very, very critical issues.
Appreciate it.
It turns out there is plenty you can do about surging gas prices.
Let's get some answers from our Internet reporter, Abbi Tatton -- Abbi.
ABBI TATTON, CNN INTERNET REPORTER: Wolf, there are a few sites out there that are trying to help you find the cheapest gas in the country and in your neighborhood.
This is gasbuddy.com. They have a temperature chart. The green areas, you're pretty lucky. You're not paying much at all -- Park, Wyoming here, $2.33 a gallon. If you're in one of the bright red areas, you're paying almost a dollar more, like El Dorado, California there. This site is actually made up of around almost 200 local sites, where residents are actually calling and reporting in information on their block of how much they're paying, like dallasgasprices.com, you can see people are out there just saying this is what I paid this morning.
Other sites rely on different data. For example, the AAA, they get it from a gas information data service. They're giving you daily updates of your state averages.
So if you're in one of these expensive areas, there is help at hand.
Mapgasprices.com, punch in your address, you'll find that the gas prices on one block could be a lot cheaper than just a few blocks away -- Wolf.
BLITZER: Abbi, thanks.
And still to come here in THE SITUATION ROOM, New Orleans officials are confident the city's first election since Hurricane Katrina will go well. But how confident are the voters?
And instead of your driving your car, might there come a day when your car drives you? We'll introduce you to a man who hopes to end all highway accidents in the future. Miles O'Brien will have that.
Stay with us.
(COMMERCIAL BREAK)
BLITZER: New Orleans is set to hold an election. But with all the challenges left behind after Hurricane Katrina, tomorrow's vote will not be like any other the city has ever held.
More now from our chief national correspondent, John King.
He's in New Orleans -- John.
JOHN KING, CHIEF NATIONAL CORRESPONDENT: Wolf, this is the emergency command center where they will count the votes tomorrow night. I don't even think Wolf Blitzer can get into this situation room.
One of the big questions, of course, is how many people will v. A little more than 140,000 people voted in the last mayoral election here in New Orleans. The secretary of state thinks maybe 120,000 will vote this time. That's much higher than many people thought just months ago. And if he gets to that level, 120,000 votes, the secretary of state says it would be a dramatic success.
If that happens, it will be because of an unprecedented effort to find the voters and convince them to turn out.
(BEGIN VIDEOTAPE) KING (voice-over): Rosa Hines is going door-to-door looking for voters, a routine sight in the countdown to election day. But here, the voters are hard to find. This isn't just any neighborhood and this election is anything but routine.
ROSA HINES: Anybody home?
KING: Nobody home is still all too common in New Orleans and nobody's quite sure what Saturday's election, the first after Katrina, will look like.
HINES: The number one question I get, pretty much, is where to go. I ask do you know where to go and the question is no, can you tell me? So.
KING: The incumbent is, as you might expect, the larger than life focus. But beyond that, throw out the traditional campaign playbook.
UNIDENTIFIED MALE: See you all on Saturday.
KING: Twenty-three candidates competing with mold and roofing contractors for attention. Rebuilding is, of course, the major theme, race and class a constant subplot. Strikingly different scenes in different neighborhoods and striking messages on the airwaves.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: ... housing, drug dealers, crack addicts, gang bangers and welfare queens will not be tolerated.
(END VIDEO CLIP)
KING: Issues and emotions aside, just the mechanics of a smooth and fair election here are daunting. Finding the voters is the big challenge. Before Katrina, New Orleans was a city of 460,000 people. Now it is less than half that. And it's hard enough to reach many voters who are here.
UNIDENTIFIED FEMALE: Now, right now, I'm getting a lot of disconnect calls. People still haven't got their lines up and running. Some of them have changed their phone numbers.
AL ATER, LOUISIANA SECRETARY OF STATE: It's a major, major undertaking, to say the least. I mean it's -- kind of I just want to tell people it's -- we're in uncharted waters.
KING: Secretary of State Al Ater has to make it all work.
ATER: This will be one of the major polling centers.
KING: This gym at the University of New Orleans is one of 76 polling centers in a city that normally has 262. There are an additional 10 satellite stations in other Louisiana cities and a hot line advertised on nearly every city block and around the country, to tell residents how they can vote by mail, fax or in person. (on camera): And you think you can pull this off?
ATER: Well, we have no choice. And yes, we do. We really believe that we have an opportunity to do two things here, to make history in that we have run an election like none ever before in the history of America.
(END VIDEOTAPE)
KING: Now, Wolf, I've spent some time, a little bit of time, with the three major candidates over the past several days. Most expect a runoff between Mayor Ray Nagin, the incumbent, and either businessman Ron Forman or the lieutenant governor, Mitch Landrieu. Most expect that runoff to be decided about a month from now.
But I have to say, Mayor Nagin is increasingly confident. He believes the African-American community, with which he has had rough relations the past several years, is moving his way. The way he put it to me, Wolf, was he said: "If there's a tie, it goes to someone who looks like u."
The mayor even -- and he, of course, has made controversial statements in the past, going as far as saying he thinks it's possible, possible he could get the 50 percent plus one tomorrow to be reelected. Most here, though, think that is not going to happen and that you will have a very bruising runoff campaign, to be settled a month from now -- Wolf.
BLITZER: We'll watch it together with you, John.
Thanks.
John King on the scene for us in New Orleans.
And on the eve of the New Orleans vote, members of the Democratic National Committee are meeting in the city, as well.
Our own political analyst, Donna Brazile, is there.
She's keeping a close eye on this election -- what do you think about what John King just reported, that it's unlikely that any of these candidates is going to emerge with 50 percent?
DONNA BRAZILE, DEMOCRATIC STRATEGIST, CNN POLITICAL ANALYST: Wolf, I think in ordinary times, one of the candidates would have emerged as the frontrunner. But look, we have a very close race. This is the most exciting election I've ever seen.
I drove to Baton Rouge today and I saw mayoral signs up and down the highway, in Baton Rouge. I heard commercials in Baton Rouge. People are prepared.
For those who can come back, they are coming back tomorrow and v. For those who are here, they are ready for the challenge. All day today I saw caravans of all the three leading candidates, as well as some of the other candidates. People are excited. You know, New Orleaneans like their politics the same way we cook our food -- very colorful and very spicy. So I think tomorrow is going to be a very exciting race. And who knows? We may have a runoff between Ray Nagin and Mitchell Landrieu, or it could be a Landrieu-Ron Forman race. It's too close to call. It depends on who turns out tomorrow.
BLITZER: What do you say to some in the civil rights movement, in the African-American community, like the Reverend Jesse Jackson and Al Sharpton, who have been critical that this election is taking place now, under these circumstances?
BRAZILE: Well, I saw Reverend Jackson yesterday. He attended our Democratic National Committee Black Caucus meeting. He talked about the dangers that are being posed by the cockpit civil rights amendments to the Voting Rights Act. Reverend Jackson has talked to Secretary of State Al Ater about some of his concerns. We -- we're very much aware of the concerns that he's, you know, raised, with the challenges that many displaced voters are having in getting their ballots in.
But the secretary of state's office is willing to accept faxed ballots. They're willing for people who are postmarking their ballot today overnighting them. They are going to accept that. The secretary of state's office will have a toll-free hotline that will run 24 hours a day. We're all here to monitor the elections to ensure no voter is turned away from the polls.
I went around today, just going to some of the old polling sites that I'm familiar with and there are clear signs telling people where to go tomorrow. There's been postcards. And, of course, the civil rights community also, they have toll-free numbers and will have people that are monitoring the elections, as well.
The elections, the voters are ready to vote tomorrow.
BLITZER: Donna, thanks.
Good to see you back in your home state of Louisiana.
Donna Brazile and John King, part of the best political team on television. CNN, America's campaign headquarters.
Lou Dobbs is part of that political team, as well.
He's getting ready for his program, that begins right at the top of the hour -- Lou.
LOU DOBBS, CNN ANCHOR: Wolf, thank you very much.
Coming up at 6:00 p.m. right here on CNN, American casualties in Iraq are still rising. Iraqis still don't have a new government and Americans still don't have a clear statement from their government about what constitutes victory in this war.
Tonight, we'll have that report from the Pentagon. Also tonight, gasoline prices are soaring, but some drivers in some parts of the country can't find gasoline at any price. Who should pay the political price? We'll have that story.
And so-called immigration reform is stalled in the U.S. Senate. My guest tonight is Congressman Dana Rohrabacher, who says the Senate is on the verge of betraying the American people.
And we went looking for those jobs that President Bush says Americans simply won't do. We'll introduce you to some of the people we found. We just didn't find the president's folks.
That special report and a great deal more coming up at 6:00 Eastern here on CNN.
We hope you'll be with us at the top of the hour -- Wolf, back to you.
BLITZER: We certainly will, Lou.
Thanks very much.
Coming up, we're going to hear from the woman who heckled China's president yesterday. She's speaking to reporters. We're going to show you what she's saying right now.
And coming up in our 7:00 p.m. Eastern hour, the war in Iraq comes home in two brand new documentaries offering a powerful look at the trauma on and off the battlefield. We'll have a preview.
Stay with us.
(COMMERCIAL BREAK)
BLITZER: The heckler heard around the world, everywhere except, of course, in China. The woman who heckled China's president at the White House yesterday just spoke to reporters here in Washington.
Here's part of what she had to say about why she heckled President Hu.
(BEGIN VIDEO CLIP)
WENYI WANG, CHARGED IN HECKLING INCIDENT: It is an individual act of conscience. I spoke out at this moment and in this way to let the world know about how (INAUDIBLE) Falun Gong practitioners' organs. It's not a crime, but an act of civil disobedience.
I call upon President Bush and the United States government to focus on the actual crimes that have been committed by the Chinese Communist Party against the practitioners of Falun Gong. I also call upon...
(END VIDEO CLIP)
BLITZER: Wendy Wang speaking to reporters outside the courthouse in Washington just a few moments ago.
We'll continue to watch this story for you.
And let's check back with Jack, in the meantime, for The Cafferty File -- Jack.
CAFFERTY: Did I read correctly? The government is going to prosecute this woman for what she said yesterday?
BLITZER: It sounds -- well, it sounds like she was disrupting a foreign leader.
CAFFERTY: Yes, get her on that chain gang right away, you know? I mean there's a -- there's a -- I mean what is wrong with these people? They play -- they played the wrong national anthem down there. You've got the president grabbing the guy by the sleeve of his coat and dragging him around. And this woman said something. So? You know, so she said something. So what?
Anyway, the next big protest over illegal immigration scheduled for May 1st. Organizers calling for a national work stoppage and a student boycott on that day. But some worry the protests could backfire, making the immigrants look anti-American, annoying the public and alienating lawmakers.
So the question is, is a May 1st boycott a good way for immigration activists to get their point across?
Jack in Lakewood, Washington writes: "Jack, it's a good way to get some tough legislation against illegal immigration."
Lee in Fairfield, Iowa: "These groups have it wrong in the first place. The debate is about illegal immigrants, plain and simple. To try to turn it into a debate about immigration only is an insult to Americans and anyone who has come to this country legally."
Anthony in Atlanta: "The protest is a great idea. It's how we do things. In a free society, it sure beats taking up arms. However, I don't agree with everything they want. I see a clear difference between legal and illegally immigration."
Blake in my hometown of Reno, Nevada: "Yes, it would be effective, but only if immigration and police detained those who are illegal. That's the answer to the problem of enforcement. You have all the illegal immigrants who think they deserve something they don't grouped together. That could be the easiest roundup in all of history."
Matt in Manistee, Michigan: "What I'm hoping for is that May 1st will be known as the great day of job creation for legal citizens of the United States."
And Mike in Minnesota writes: "As soon as I see a flag upside down or from another country, I flip it off. The TV station, that is" -- Wolf.
BLITZER: See you back here in an hour, Jack.
Thanks.
CAFFERTY: OK.
BLITZER: Up next, a facelift for America's aging highways. We're going to show you what the future may hold.
CNN's Miles O'Brien with a preview.
Stay with us.
(COMMERCIAL BREAK)
BLITZER: America's highway system is 50 years old.
Is it time for an upgrade?
CNN's Miles O'Brien shows us one idea to make you safer in today's edition of Welcome To The Future -- Miles.
MILES O'BRIEN, CNN ANCHOR: Wolf, here's a staggering statistic. If today is an average day here in the U.S. 109 people will be killed in traffic accidents. That's 40,000 people a year. But there may be a way to prevent many of these deaths by making cars and roads smarter.
(BEGIN VIDEOTAPE)
O'BRIEN (voice-over): Meet Jim Meisner, a transportation safety expert at U.C.-Berkeley. His goal? Simple -- to eliminate accidents.
JIM MEISNER: We focus on something called intelligent transportation systems, essentially putting technology into the roadside and into cars to make the road safer.
O'BRIEN: It's like your car's GPS navigation system beefed up and made interactive, with intelligent sensors mounted on the car and on the street, alerting you to unsafe intersections, blocked lanes or hazardous road conditions.
MEISNER: You can have intersections talking to a car, cars talking to the intersections. The cars, therefore, can communicate better to the drivers what's happening.
O'BRIEN: Meisner says the system could roll out as soon as 2010, with an end goal of George Jetson proportions.
MEISNER: In the end, we could have very safe cars that drive automatically. If you have a fully automated system, you have to have a lot of acceptance by drivers and by society for it to happen.
(END VIDEOTAPE)
O'BRIEN: Meisner says the California Department of Transportation is sponsoring the U.C.-Berkeley team to build a network of these smart intersections in the San Francisco Bay Area. He hopes this real life application will give them even more insight to how cars and drivers can communicate -- Wolf.
BLITZER: Miles, thanks.
We'll see you next week.
We're here in THE SITUATION ROOM weekday afternoons 4:00 p.m. to 6:00 p.m. Eastern, back at 7:00 p.m. Eastern in one hour.
Lou is standing by to take over -- Lou.
DOBBS: Wolf, thank you.
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