Guest Post: Former Shell Oil Chief Predicts $5 Gas by 2012

$5 Gas by 2012? Ex-Shell Oil Exec Predicts
John Hofmeister, former president of Shell Oil, believes the $5 gas will be average in 2012 here in America. During a recent interview, Hofmeister, who left Shell Oil in 2008 and now heads Citizens for Affordable Energy, predicts that the price of a gallon of gas will be $5, if not more, by 2012. Last weekend, the taped interviewed was aired on Platts Energy Week television. Hofmeister blames global demand, tighter supplies and government inaction for a increases at the gas pump. Already, the p...

Former shell executive raises the specter of $5 per gallon gas
Gas Prices became a major topic of discussion this week after the former president of Shell said that the United States could see gas prices as high as $5 per gallon in 2012. "When American Consumers are short or prices are so high — $5 a gallon for Gasoline, for example, by 2012 — that's going to set a new tone. It's going to be panic time on behalf of the politicians," John Hofmeister, who was president of the company from 2005 to 2009, told Platts Energy Week. Platts Energy Week aired t...

The World Powers Up While America Powers Down
The Wall Street Journal reports: “The global Oil Industry, far from chastened by the catastrophic spill in the U.S. Gulf of Mexico, is planning record spending next year, including a large amount for deep-water development. … Barclays estimates spending on new wells, producing platforms and other energy infrastructure will total $490 billion next year, up 11% from 2010. The figure is based on a survey of 402 companies. In part, the planned spending increases reflect the higher cost...

Oil majors to spend big in 2011
Washington imposed a Moratorium on deep-water drilling after BP's Deepwater Horizon Oil rig caught fire and sank in April, leading to one of the worst Environmental Disasters in the history of the industry. A survey by Investment Bank Barclays Capital, however, indicates that major energy companies are planning to spend as much as $500 billion next year on Oil and gas exploration. James West, an energy analyst at the bank, told The Wall Street Journal that spending on new energy efforts in 2011 ...

Obamas Energy Policies Will Cost U.S. Dearly
The fact is every $1 increase in crude Oil Prices reduces the US Gross Domestic Product by an estimated $100 billion. Every one cent increase in Gasoline prices lowers disposable income by an estimated $600 million. US government regulations in the Gulf of Mexico; no drilling off the East and West coasts; increased environmental regulations; restriction on Nuclear Power plants, limits on coal fired Power Plants, etc, etc, will increase our energy costs and increase our importation of Crude Oil. ...

The Gulf is Dying: A Special Report on the BP Gulf Oil Spill
© Charlie Riedel/AP It is with deep regret that we publish this report. We do not take this responsibility lightly, as the consequences of the following observations are of such great import and have such far-reaching ramifications for the entire planet. Truly, the fate of the oceans of the world hangs in the balance, as does the future of humankind. The Gulf of Mexico (GOM) does not exist in isolation and is, in fact, connected to the Seven Seas. Hence, we publish these findings in orde...

Local Gas Prices Climb 8 Cents In Week
GREENVILLE, S.C. -- Gas Prices in the Greenville area have climbed 8 cents during the past week, according to GasBuddy.com. The website said that the average price for a gallon of Gasoline is at $2.86 as of Monday, but that price is below the national average of $3.03 per gallon -- up 4.3 cents over last week. Monday's prices were 44.2 cents higher than the same day last year and 26.2 cents higher than a month ago, the website reported. Nationally, GasBuddy.com said, the average price for a gall...

Gasoline Prices Are Spiking Way Out Of Season
Email Sent! You have successfully emailed the post. Doug Short is the CEO of Dshort.com. On our brief Christmas afternoon drive home from a family gathering in Clayton NC, we spotted a Wal-Mart service station sign for $3.019 regular gas. The post-Thanksgiving Holiday Season is not one I normally associate with high Gas Prices. As the chart below shows, the general pattern is for Gasoline prices to peak in the summer and decline after Labor Day. This year has run counter to the pattern by a si...

Oil Breaches $91 a Barrel in Light Trading
Oil Prices on Tuesday reached the $91-a-barrel mark in light trading as strong demand and limited supply continues to push up prices toward the end of the year. Oil for February delivery increased 27 cents to $91.27 a barrel in New York Mercantile Exchange trading Tuesday. It had been trading at about $81 a barrel about a month ago. Sponsored Links The higher oil prices reflect tightened petroleum inventories and what may be a slight resurgence in the U.S. economy, which is increasing demand....

Fuel consumption falls in Iran after subsidy cut
Tehran, Iran — Fuel consumption has fallen by a fifth since the government began slashing energy and food Subsidies earlier this month, a top government official said Wednesday, claiming an early sign of success in the Controversial program. Gasoline prices quadrupled and bread prices tripled after the cuts came into effect Dec. 19, part of a government effort to boost Iran’s ailing economy by reducing the massive drain on the state Budget from the subsidies. The economic shock has ...

Fuel Consumption Falls in Iran After Subsidy Cut
Wednesday, December 29, 2010 By Ali Akbar Dareini, Associated Press Tehran, Iran (AP) - Fuel consumption has fallen by a fifth since the government began slashing energy and food Subsidies earlier this month, a top government official said Wednesday, claiming an early sign of success in the Controversial program. Gasoline prices quadrupled and bread prices tripled after the cuts came into effect Dec. 19, part of a government effort to boost Iran's ailing economy by reducing the massive drai...

Fuel consumption falls in Iran after subsidy cut
TEHRAN, Iran (AP) - Fuel consumption has fallen by a fifth since the government began slashing energy and food Subsidies earlier this month, a top government official said Wednesday, claiming an early sign of success in the Controversial program. Gasoline prices quadrupled and bread prices tripled after the cuts came into effect Dec. 19, part of a government effort to boost Iran's ailing economy by reducing the massive drain on the state Budget from the subsidies. The economic shock has brough...

Gas to Hit $5 a Gallon? Yes, Says Ex-Oil Exec
"In the U.S., we use 20 million barrels a day. We produce about seven. We're not drilling. We're going to produce about six a year, year-and-a-half from now. That means we have to import more Oil, while the whole rest of the world is also importing oil. It's going to put tremendous upside pressure on the Crude Oil price, which is the only way to tamp down demand. It's very worrying for consumers and, really, for the American Economy to think we would go back to such high prices." Hofmeister cal...

Former Shell CEO says gas headed for 5 bucks per gallon
The former head of the Shell Oil Company stated Monday that with the current market price for a barrel of oil nearing $92 and headed for over $100, the price for a gallon of gas in the U.S. could hit $5 per gallon in the not-too-distant future.  Others have estimated an even worse scenario. As speculators began to note that the future price of oil was headed through the roof due to increased competition from developing nations such as China and India, and as a result of Obama Administration...

2010 Comes to an End But the BP Oil Disaster Continues
A number of people living along the Gulf believe the Oil is still leaking. Cook doesn't know if this is true or not but acknowledges that there are reports of more Oil leaking from groups doing independent reporting along the Gulf. She discusses how the climate in the Gulf could be one that promotes the spread of Conspiracy theories: "I think it runs the gamut because you have folks who are in complete denial and are eating the Seafood and believe what the government has said, that the disast...

$5 A Gallon Gas Forecast Has Ex-Shell Exec Making Headlines
What is this? Predicting that Gasoline will hit $5 a gallon by some time in 2012 has put former Shell Oil president John Hofmeister on the News Media's radar today. Why's he think the price will go there? "The issues that gave rise to high priced Gasoline in 2007 and 2008 are repeating themselves, except the world demands even more oil in the next several years than before," Hofmeister tells CNN (he's due on tonight's edition of Parker Spitzer). "Asian growth is continuing. ... U.S. economic rec...

$5 A Gallon Gas Forecast Has Ex-Shell Exec Making Headlines
What is this? Predicting that Gasoline will hit $5 a gallon by some time in 2012 has put former Shell Oil president John Hofmeister on the News Media's radar today. Why's he think the price will go there? "The issues that gave rise to high priced Gasoline in 2007 and 2008 are repeating themselves, except the world demands even more oil in the next several years than before," Hofmeister tells CNN (he's due on tonight's edition of Parker Spitzer). "Asian growth is continuing. ... U.S. economic rec...

Writers and Authors
Wednesday, December 29, 2010 By Rich Galen I am a professional writer. Not an author, but a writer because I have never had a book published (at least, in part, because I've never written one). According to Webster's Third Unabridged, an author is defined as "the writer of a literary work (as a book)." See the difference? I just counted the number of MULLINGS I will have sent out by New Year's Eve this year: 146. Each is about 750 words - the length of a standard newspaper op-ed. Allowing ...

Oil Stays Above $91 As OPEC Signals No Output Hike
Monday, December 27, 2010 By Alex Kennedy, Associated Press Singapore (AP) - Oil Prices hovered above $91 a barrel Monday in Asia as some OPEC ministers signaled the group doesn't plan to boost output to cool the recent jump in crude. Benchmark Oil for February delivery fell 17 cents to $91.34 a barrel midday Singapore time in electronic trading on the New York Mercantile Exchange. On Thursday, the contract rose $1.03 to settle at $91.51, the highest level since October 2008. Global Oil mar...

A Lower-Carbon Route to Replacing Oil
An emerging surfeit of Natural Gas has chemists and engineers studying how to turn it into pricier commodities, like diesel fuel or other Oil substitutes. As I wrote last week, Sasol, a South African company that produces diesel fuel and naphtha from coal, is considering building a similar plant to take advantage of the Natural Gas fields of Canada. The conversion would turn a profit, but the conversion itself, even before the fuel is used, can be a major source of Carbon Dioxide emissions. A Sa...

Oil hovers above $91 as traders eye crude supplies
Oil prices hovered above $91 a barrel Wednesday in Asia ahead of reports that may show a third week of U.S. crude inventory reductions, a sign demand is improving. Benchmark Oil for February delivery rose 1 cent to $91.50 a barrel late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The contract rose 49 cents to settle at $91.49 on Tuesday. Crude supplies likely fell 3.2 million barrels last week, according to analysts surveyed by Platts, the energy informatio...

Brace for $5 gas, Shell exec warns U.S.
WASHINGTON, Dec. 28 (UPI) -- Gasoline Rationing and $5 pump prices are predicted by 2012 for consumers if U.S. politicians don't get their act together, a former Shell executive said. The average price for regular unleaded gasoline for U.S. consumers topped $3 per gallon during the Holiday Season. John Hofmeister, a former president at Shell Oil, told the Platts news service that energy shortages and record-high gasoline prices were on the horizon because of high demand and ineffective governing...

Oil Industry Plans Record Spending in 2011
One would think that BP's (BP) massive Oil Spill in the Gulf of Mexico would have given pause to the global Oil Industry, but that doesn't appear to be the case. Instead, companies in the sector are planning to spend a record $490 billion next year, including a large amount for deep-water development, The Wall Street Journal reported Wednesday, citing a Barclays Capital survey. The record spending is projected to come from Oil majors such as Exxon Mobil (XOM) as well as small outfits as the in...

Drunken Sailors
From Liberty Juice Coming Soon: The Day Of Reckoning The day of reckoning is at hand!  With massive Budget Deficits raining on the spending parade states and cities have been enjoying for years, some serious decisions will soon have to be made to avoid insolvency.  Sadly, the easy solutions are no longer an option.  As states and cities look at the grim reality of their budgets they will have to either significantly increase taxes or slash spending on all levels.  Or they can just craw

Coming and Going
Gasoline prices typically deflate during winter months when demand is relatively low. When the weather warms, price rises in step with increased seasonal demand. This doesn't bode well for 2011. (In June 2008 prices peaked at over $4.50/gal.) Up until a few weeks ago crude Oil Prices were in the low $80s per barrel. Currently, the price is $91. Rising crude has prompted speculators to jump into the oil market . That trend likely will continue, with major Investment Banks projecting a return to $...