John Hofmeister, former president of Shell Oil, predicts Americans could be paying $5 for a gallon of gasoline by 2012. Discussing the oil industry during an interview on Platts Energy Week, Hofmeister said the rising worldwide demand for oil, tighter supplies and inadequate responses by the U.S. government could have a major impact on the price of fuel.
Hofmeister, who retired from Shell in 2008, is now CEO of a grass-roots group called Citizens for Affordable Energy. He also expects there to be little or no new drilling in deep waters of the Gulf of Mexico for the next two years, as the federal government implement tighter regulation of the oil and gas industry in response to the BP oil spill.
“If we stay on our current course, within a decade we’re into energy shortages in this country big time,” Hofmeister said. “Blackouts, brownouts, gas lines, rationing -- that's my projection based upon the current inability to make to make decisions.” …. “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 for politicians. They’re suddenly going to get the sense that we better do something.”
Pictured: Former president of Shell Oil John Hofmeister predicts Americans could be paying $5 for a gallon of gasoline by 2012.
Photo courtesy of Citizens for Affordable Energy