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Page added on December 28, 2010
Ex-Shell president sees $5 gas in 2012
The former president of Shell Oil, John Hofmeister, says Americans could be paying $5 for a gallon of gasoline by 2012.
In an interview with Platt’s Energy Week television, Hofmeister predicted gasoline prices will spike as the global demand for oil increases.
“I’m predicting actually the worst outcome over the next two years which takes us to 2012 with higher gasoline prices,” he said.
Tom Kloza, chief oil analyst with Oil Price Information Service says Americans will see gasoline prices hit the $5 a gallon mark in the next decade, but not by 2012.
“That wolf is out there and it’s going to be at the door…I agree with him that we’ll see those numbers at some point this decade but not yet.” Kloza said.
“The demand is still sluggish enough in some of the mature economies.”
Check gas prices in your state
Gasoline prices have been steadily rising. Last week, gas prices crossed the $3 mark for the first time since October 2008. According to AAA figures, prices are up 4% from a month ago and 16% from the $2.585 average a year ago.
A study from the Oil Price Information Service estimates drivers will spend $305 on gasoline in December. According to the study, fuel prices are up 13.6% from last December and 76% higher from December 2008.
Gas prices eased off last week’s gains but still remained around the $90-a-barrel mark, settling at $91-a-barrel. Prices were down 51 cents from Thursday’s close after China unexpectedly raised interest rates over the holiday weekend for the second time in two months.
Oil prices settled above $90 a barrel for the first time since October of 2008. To top of page
4 Comments on "Ex-Shell president sees $5 gas in 2012"
kjw on Tue, 28th Dec 2010 12:38 pm
we have $4.00 per us gal gas in BC, canada
it is no big deal
Kenz300 on Tue, 28th Dec 2010 10:27 pm
The global economy was built on cheap energy. Making and shipping goods around the world may not make sense with high energy prices.
We may be moving back to a more local economy with goods and energy being produced closer to the point of use.
Bring on local production or wind, solar, geothermal and second generation biofuels. Let’s produce energy and products locally providing local jobs.
We need communities where it is easy to walk or ride a bicycle to work, school or play. Busses, trains, trolleys and other forms of mass transit need to be increased.
We need energy efficient transportation choices. Bring on the electric, hybrid and flex-fuel vehicles.
We need energy efficient appliances and less energy intensive packaging.
High energy prices will impact every facet of life and will cause consumers to start making informed choices about the energy they use.
Can we transition to a sustainable society over time or will the change come quickly caused by high energy prices and shortages or resources?
How high the prices rise and how quickly it happens will determine the effect on our economic security and national security.
Rick on Wed, 29th Dec 2010 5:35 am
$5 a gallon – I think we’ll come close to that in 2011, not in 2012.
@ KJW, you must like spending money.
Wheeldog on Wed, 29th Dec 2010 6:03 am
I fear it will take a major energy crisis to convince the public of the realities of peak oil. Unfortunately, such a crisis will likely set off a chain reaction of debt default, rapidly increasing unemployment, collapsing financial markets and even military conflicts between nations competing for a piece of a shrinking energy pie.
Transitioning to a different energy regime would take at least two decades, and time is not on our side. There are too many people using too much stuff on a planet with finite resources. For those who consider this to be just a bunch of Casandra predictions remember that Casandra was right.