US

$5 a Gallon? Brace Yourselves for High Gas Prices Says Ex-Shell CEO

John Hofmeister, former president of Shell Oil, warned this week that Americans could be paying as much as $5 for a single gallon of gasoline by 2012.

“I’m predicting actually the worst outcome over the next two years which takes us to 2012 with higher gasoline price,” Hofmeister told Platt’s Energy Week television, citing increasing global demand for oil.

CNN Money reports that while the price of gas is surely on the rise, it may not be quite as bad as Hofmeister predicts:

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.”

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.

Comments (171)

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  • broker0101
    Posted on December 28, 2010 at 10:08pm

    COL.HAWK, I do salute your complete ignorance of the world’s commodities markets and their pricing of commodities. Although, when one is an ignorant, paranoid conspiracy-theory obsessed imbecile, imagining that organizing a massive (and impossible) boycott of one “gas company” (even using that term belies your complete ignorance of the marketplace) could effect gasoline prices at the pump must make complete sense. It must be frustrating for you to have your brilliance constantly ignored or ridiculed (That was sarcasm, just like my originally calling you “sir”).

    Report Post » broker0101  
  • youguysready_letsroll
    Posted on December 28, 2010 at 10:07pm

    **snaps to attention** Colonel Hawk, Sir!, doesn‘t that just increase demand and reduce supply for the competitors’ gasoline, sir, thus increasing their price?

    Report Post » youguysready_letsroll  
  • My_Country
    Posted on December 28, 2010 at 10:04pm

    OPEC has a target price of $100/barrel oh if only we had oil here we could drill, OH wait a minute….

    Report Post »  
  • Col. HawK
    Posted on December 28, 2010 at 9:57pm

    @RBQUEEN…. Why, Thank-you, I can‘t say I’m the smartest man, but there are times I even amaze myself, but the glory is not mine…. Cheers, and Hugs! to you RBQUEEN :)

    Report Post » Col. HawK  
  • tankerBigRed1
    Posted on December 28, 2010 at 9:56pm

    corn was a short crop this year= high price– drought monitor looks bad for next years crop- will make pork chops & steak pricey – if not out of reach -last big droughts -64–88-11??not looking good for the home team..

    Report Post » tankerBigRed1  
  • Its Gonna Getcha
    Posted on December 28, 2010 at 9:51pm

    OK ladies and gentlemen. Pucker up. Let’s learn the how-to’s of syphoning. The additional head rush is just a side benefit.

    Report Post » Its Gonna Getcha  
    • commonsenseguy
      Posted on December 28, 2010 at 10:10pm

      man,that taste bad but, if that is what is going to happen, then i will have to put a boobie trap on my gas tank that will spray12ga pellets when it is opened. so i wish them well!!!

      Report Post »  
  • Col. HawK
    Posted on December 28, 2010 at 9:49pm

    BROKER…. I sure hope you Saluted and I didn’t hear you ask for permission to speak first, or are you still speaking through your A$$???.

    Report Post » Col. HawK  
  • Donald
    Posted on December 28, 2010 at 9:47pm

    This is just the start…watch for food prices to blow up.

    Report Post » Donald  
    • scguitar
      Posted on December 28, 2010 at 9:54pm

      O it’ll happen. I guarantee gas hits an all time high by the summer of 2011

      Report Post »  
  • rbqueen
    Posted on December 28, 2010 at 9:46pm

    Col. HawK, if you are an imbecile then that would make you an imbecilic genius. Unfortunately I cannot say that last part for someone else.

    Report Post »  
  • commonsenseguy
    Posted on December 28, 2010 at 9:40pm

    printed all that money, now have to suck it back up. also the government has said that these hedge funds guy would be kept on a short lease . i actually know someone who used to be a hedge fund manager { used to be went broke } but what these guys are doing is buying ship loads of oil and then pay the captains to stay out of port until the oil market gets low then they can sell it for twice some time 5 times what they paid for it. also, there is no shortage of oil or gas, this is just a bunch of greedy hedge fund managers that are playing the market. but, obama and the politicians said they had passed laws to prevent this from happening, sounds like they just made it easier for these guy to do it again. OVER WHELM THE SYSTEM!!!!!

    Report Post »  
    • broker0101
      Posted on December 28, 2010 at 9:48pm

      COMMON, either you or your alleged former hedge fund manager “friend” is a liar. My money’s on you.

      Report Post » broker0101  
    • commonsenseguy
      Posted on December 28, 2010 at 10:18pm

      i am only saying what i was told, and what i have read, if that makes me a lair, then so be it, but if it don;t then it makes you uninformed or it would mean that you are just trying to act like you are smarter than you are, or maybe, you just like to think your are.so okay, you are if that makes you fell better.

      Report Post »  
    • wash1776
      Posted on December 28, 2010 at 10:30pm

      @BROKER: Why don’t you get some sort of a life besides insulting everyone on this site? At least COMMONSENSEGUY, et al try to impart some information. All you do is hurl nasty remarks at everyone. You ought to get a job in the white house where you would fit right in.

      Report Post »  
  • NickDeringer
    Posted on December 28, 2010 at 9:40pm

    Like a baby who survives a botched abortion, O’Barry is leaving America to die in a utility room.

    Report Post » NickDeringer  
  • broker0101
    Posted on December 28, 2010 at 9:40pm

    COL. HAWK, you, sir, are an imbecile. Happy New Year!

    Report Post » broker0101  
  • Smokey_Bojangles
    Posted on December 28, 2010 at 9:39pm

    Obama gets closer to Ruining Jimmy Carter’s legacy as being the WORST PRESIDENT EVER

    Report Post » Smokey_Bojangles  
  • scguitar
    Posted on December 28, 2010 at 9:38pm

    Why don’t we drill our own oil and use clean coal while funding research into cheap alternatives. There is more than enough oil and coal to sustain the US ecnomy until another competitive source is discovered. The big companies dont want research into alternatives, and liberals want to cut off oil use when we are not even ready to use alternate fuels without federal subsidies. I would love for someone to look into water powered engines. Talk about a great alternative

    Report Post »  
  • BoilitDown
    Posted on December 28, 2010 at 9:33pm

    If I were to get a car again, I believe that converting it to natural gas would be the wisest thing to do at this point.

    Report Post »  
  • scguitar
    Posted on December 28, 2010 at 9:32pm

    Why don’t we drill oil and use clean coal while funding research into cheap alternatives at theA

    Report Post »  
    • Dustyluv
      Posted on December 29, 2010 at 5:48am

      You bought into the lie about clean coal? That is a MYTH. There is no such thing as clean coal other than in the mind of the promoters and the ones who are duped. Clean coal will never happen. But I’m all for dirty coal!! Use it and enjoy it.

      Report Post »  
  • tankerBigRed1
    Posted on December 28, 2010 at 9:29pm

    Dat ot to take care of our recovery–bty– elliot wave curve [ended in 2014] shows us in same place as 1933-think it possible? I thought not back in early 90′s- now I see it ******* true befor my very eyes– have a 1945 pop mechanics mag that predicted the Korean war — & also– STARTING in 1980 that China would start a 510 year period of world domination- think they got a start yet??

    Report Post » tankerBigRed1  
  • roostercogburn
    Posted on December 28, 2010 at 9:29pm

    Exactly, drill baby drill, congress has to over rule Obama and start to drill again, it will take a while to make a difference but they have to let the oil companies drill again, hell China and Russia are drilling in the Gulf as we speak, Obama has to look out for America instead of spooky dude, how much money will spooky dude make that the drill rigs are moved down to drill for his oil..

    Report Post » roostercogburn  
  • spreadcommonsensenot pc
    Posted on December 28, 2010 at 9:28pm

    like NORTH DAKOTA——-the real problem is the dollar—its tanking—prices go up

    Report Post »  
  • heavyduty
    Posted on December 28, 2010 at 9:28pm

    When people finally figure it out, last year when oil hit a $100 a barrel, the price of gas hit $3.00 a gallon. Now when oil is $91.00 a barrel, gas is $3.00 a gallon. They will continue to raise the price of oil and then the gallon of gas. Then the price of oil will drop by so much, but the price of gas won’t drop back to the original price. Then they do it all over again. We will be lucky if it stops at $5.00 dollar a gallon gas. Until we as a nation uprise and stop these thief’s Most of it is taxes anyway. Everytime it goes up the politicians put another two to three cent tax on it. That’s why it never goes back down to the original price to start with.

    Report Post »  
  • huntee
    Posted on December 28, 2010 at 9:28pm

    we will drill in the USA, it gives the Republicans a good platform to campaign on,

    Report Post »  
    • youguysready_letsroll
      Posted on December 28, 2010 at 10:03pm

      Didn’t work in 2008 for Repubs as everyone was mesmerized by the Almighty One

      Report Post » youguysready_letsroll  
    • AndMercy4All
      Posted on December 28, 2010 at 10:06pm

      Yes, the issue would seem to be right in the wheelhouse for a primary candidate from an energy rich state like Texas or Alaska — say Perry or Palin?

      Report Post » AndMercy4All  
    • Creestof
      Posted on December 28, 2010 at 11:15pm

      The problem is the same as always…we want it right now and trash anything that takes a while to come to fruition. Everytime you bring up drilling, the naysayers trot out the 10 year estimate for any new drilling to have an effect.

      The idiots will never learn that it will ALWAYS take ten years and that ten years will come and go a lot sooner if we just get started,

      Report Post »  
    • guyperram
      Posted on December 29, 2010 at 6:14am

      The purpose of the naysayers is to keep us dependent on foreign sources of oil. Remember back when Carter was President, we would be out of oil within 8 years, or some such nonsense.
      This is all part of the agenda to destroy America. It’s been working quite well so far.

      Report Post »  
  • guyperram
    Posted on December 28, 2010 at 9:25pm

    Do you notice how he isn’t planning on the devaluation of the dollar? Maybe the Fed can keep pumping out the dollars, and we really will not have inflation. Of course, every time that has been tried it hasn’t worked, but Big Ben knows more than us stupid students of history.
    Since I know how well Ben’s policeys will work, I’ll bet on a gallon of gas being at least $7 a gallon by 2012. If you exterpolate the inflation from the Carter Administration (21%) on an increase of the money supply of 13% then realize that, so far, Big Ben and Co have quadrupled (thats 4 x’s) the money supply. Work the math if the inflation rate is the same a gallon of gas is around $1900. Isn’t hyper-inflation wonderful?

    Report Post »  
  • cheezwhiz
    Posted on December 28, 2010 at 9:25pm

    Hussain was OK with higher gas prices during his campaign. He was in favor of gas prices sky rocketing so as to deform our economy . He just wanted the prices to shoot up at a slower pace, you know like a slow boil .
    So I guess his plan worked

    Report Post » cheezwhiz  
  • Banter
    Posted on December 28, 2010 at 9:24pm

    Wealth redistribution.

    Report Post » Banter  
  • twofoot_trucker
    Posted on December 28, 2010 at 9:20pm

    Why are we not drilling for our own resources again?

    Report Post »  
    • cheezwhiz
      Posted on December 28, 2010 at 9:26pm

      Drill our own oil and bring the prices down while bankrupting the Saudis ?
      Why would Hussain allow that ?

      Report Post » cheezwhiz  
    • Banter
      Posted on December 28, 2010 at 9:34pm

      my post below was meant to be a reply to your post. Anyways, the answer to your question is wealth redistribution.

      Report Post » Banter  
    • NEAF
      Posted on December 28, 2010 at 9:41pm

      Is common sense. We are not going to do it.

      Report Post » NEAF  
    • HillBillySam1
      Posted on December 28, 2010 at 9:46pm

      I agree that some of it has to do with wealth redistribution but I also think that our Dear Leader’s association with the various Progressive enviromentalist groups is playing a bigger role. They cannot shame Americans into using less gas and buying hybrids from Government motors, so they will make it so that you cannot afford to drive anywhere. The unfortunate consequence of food prices climbing will not deter them. This will really put a crimp on jobs and economic growth….but hey, who needs a job in Obama-World anyhow???

      Report Post »  
    • John 1776
      Posted on December 28, 2010 at 9:49pm

      Good question! Every move this administration makes cuts off more of our own development of our resources in hopes of “creating green jobs” that are a bunch of bs. We are boxing ourselves into a corner without an exit. My only hope is that we will fight like cornered rats in 2012 to get someone in office that will allow us to open up the spigot on our own resources,

      Report Post » John 1776  
    • Xcori8r
      Posted on December 28, 2010 at 9:50pm

      Oil wells? Oil wells? We don’t need no stinking oil wells!

      Report Post » Xcori8r  
    • GEW
      Posted on December 28, 2010 at 9:55pm

      Why we must bow down to our new god of this world. The Environment, and their high lords and masters the Environmentalist. Cheers, really good point about the Saudis!

      Report Post » GEW  
    • tmkphx1962
      Posted on December 28, 2010 at 10:01pm

      Because the environmentalists have the Progressives in their pockets. Plus Obama hates the US. We need him to go away.

      Report Post »  
    • Banter
      Posted on December 28, 2010 at 10:06pm

      Hillbillysam1 – excellent point. In the end they are trying to push all of us into the govt cheese program.

      Report Post » Banter  
    • booger71
      Posted on December 28, 2010 at 10:12pm

      And Nobama is set to take millions of more acres away from possible oil and mineral production, How many million’s of acres do these nitwits need to hike on

      Report Post » booger71  
    • Sinista Mace
      Posted on December 28, 2010 at 10:17pm

      I watched gas jump 20 cents overnight.

      Report Post » V-MAN MACE  
    • Reagan/DeMint.deciple
      Posted on December 28, 2010 at 10:22pm

      The wonderful land of obama !! PPphhhfffftttt…..

      Report Post » one years food ration like glenn says  
    • AzDebi
      Posted on December 28, 2010 at 10:49pm

      NOW YOU REMEMBER WHAT THE DEAR LEADER SAID BEFORE HE TOOK THE THRONE, RIGHT?…“Energy prices would necessarily SKYROCKET under my plan”…Don’t worry America…HE KNOWS WHAT HE IS DOING!

      Report Post » AzDebi  
    • CatB
      Posted on December 28, 2010 at 11:10pm

      Funny isn’t it .. how there is no inflation? Oh that‘s right they don’t “count” food and energy … do they think we are idiots .. they are about to be very surprised NOVEMBER 2012.

      Report Post »  
    • CatB
      Posted on December 28, 2010 at 11:12pm

      AZDEBI .. I agree this is all part of his plan ..as is weakening the U.S. with his START Treaty and all the regulations they are putting in place to control WE THE PEOPLE … ENOUGH NUDGING !

      Report Post »  
    • lylee
      Posted on December 28, 2010 at 11:17pm

      The answer is simple Mr. twofoot trucker. We do not drill for our own oil because of the caribou, and the polar bears, and the environment, and global warming, and climate change, and global cooling, and what if we spill something, and oil slicks, and oil wells are ugly, and oil is evil, and our own oil would destroy the market for renewable energy, and it would tick off our Arab friends, and it would tick off our Chinese friends, and it would tick off our Venezuelan friends, and we would continue to use 25% of the world’s oil while we are only 4% of the world’s population, it wouldn’t be fair, and Greenpeace, and it would disrupt the new world order, and Obama does not want to. But if we just nationalize the oil companies, I’m sure all these objections would go away and we would be able to drill for our own oil.

      Report Post »  
    • Curator_JDR
      Posted on December 28, 2010 at 11:23pm

      Haven’t we seen this film before the 2008 election? That movie ended with Obama as president. How will this one end?

      Just released. A totally politically incorrect Animated Short Feature Film “A Not So Grimm Fairy Tale” ………… Political Satire without restraint. Synopsis: The people of “Hairmerica” were mislead into believing a totalitarian political machine. They awaken and take back their nation from the grip of Sorge Goros and Nancy Poles-i-don’t-see with the assistance of Ms. Bearah Sailin and her grizzly bear clan.

      http://www.marcrubin.com/hairmerica.ivnu

      Report Post » Curator_JDR  
    • HighLonesome
      Posted on December 28, 2010 at 11:23pm

      I contend that even drilling all of the oil we have here, which is a lot, its not going to lower the cost that much. After all it’s what the market will bare that dictates the price. The oil companies can make good money by spending less of overhead and still make more at the pump.

      Saying it another way: Supply and demand. Why would the oil companies spend all that money on drilling when they can get a good price now?

      Report Post » HiLonesome  
    • seeker9
      Posted on December 28, 2010 at 11:53pm

      Why not make some money from all this? UGA (US Gasoline Fund), COP (Conoco), CVX (Chevron), BP may reinstitute dividend should give stock a boost, PBR (PetroBras). All on my list. May be a Jan/Feb pullback, but wait for the driving season!

      Report Post » seeker9  
    • seeker9
      Posted on December 29, 2010 at 12:15am

      Don’t forget. Obama cause high oil prices, Obama blame evil oil companies. Obama want profits. Obama is hero.

      Report Post » seeker9  
    • mossbrain
      Posted on December 29, 2010 at 12:16am

      Yeah you mean the same Saudis that Bush had flown out of the USA within hours of 9/11? The same Saudis that Bush walks hand in hand with? The rich are much more protective of each other than they are of the lower classes of their own countries. You lower classes are just pawns, cannon fodder, worker bees.

      Report Post » mossbrain  
    • CatB
      Posted on December 29, 2010 at 1:09am

      Perhaps if we all “properly inflate our tires” … LOL another CLASSIC BY OBAMA!

      http://www.youtube.com/watch?v=XzZNP4tTfV0

      Report Post »  
    • cheezwhiz
      Posted on December 29, 2010 at 1:47am

      @ CatB
      I raise you
      “ Insulation is sexxxxyyyy ”

      http://www.youtube.com/watch?v=noUaPjpKIr4

      Report Post » cheezwhiz  
    • cheezwhiz
      Posted on December 29, 2010 at 1:55am

      Yeah you mean the same Saudis that Bush had flown out of the USA within hours of 9/11? The same Saudis that Bush walks hand in hand with?
      —————–
      Yup.
      The same Saudis whose king received the lowest bow from the lowlife of the current WH.
      The same Saudis who paid for Obama’s muslim grandmother to perform hajj, together with 10 of her family members, last year.
      And then another hajj , THIS year.
      The same Saudis who are building madarassas at every building they can find.
      The same Saudis who want a gazwa / rabat @ G-0, even if it is a little farther away from the BCF ?
      See, its us versus them.

      Report Post » cheezwhiz  
    • ishka4me
      Posted on December 29, 2010 at 1:56am

      this should help the economy. at the very least , opec will be able to finance some more alqaeda operations

      Report Post »  
    • Dustyluv
      Posted on December 29, 2010 at 5:37am

      I can’t wait for Texas to secceed. We can tell the rest of the world to kiss our butts. We have enough oil and gas here to supply the rest of the Nation…at a price hehehe

      Soon $5.00 gas will be a bargain becuse of what this administration is doing with our money supply. I think it will be more like $25.00 a gallon when hyperinflation hits. Get ya some of that..

      Buy food, water, gold, silver and ammo or you will pay the price soon. A days wages for a loaf of bread is coming soon…Thank you Obama and Congress for screwing up a great Nation.

      Report Post »  
    • Mandiru
      Posted on December 29, 2010 at 6:10am

      Funny how Obama claimed we weren’t going to be taxed during his presidency. This looks suspiciously like a tax to me.

      Report Post » Mandiru  
    • ANTIFA
      Posted on December 29, 2010 at 6:32am

      “Why are we not drilling for our own resources again?”

      Because it would do nothing to drive down the price of gasoline, because we have virtually nothing compared to the rest of the world and oil is a global commodity.

      Report Post » better red than dead  
    • EP46
      Posted on December 29, 2010 at 7:02am

      barry gave mexico $25 million to drill in the gulf…we can‘t take ’their oil’ that would not be re-distribution

      Report Post »  
    • dantom
      Posted on December 29, 2010 at 8:07am

      Now we will get that hope and change everyone wanted Bull sh–.

      Report Post »  
    • tobywil2
      Posted on December 29, 2010 at 8:07am

      OIL DRILLING IN THE GULF
      A moratorium on drilling in the East and Gulf reduces the world’s available oil supplies. This, of course, will result in an increase in the value of oil reserves. Since BP has trillions of dollars of oil reserves, who do you think benefits from this moratorium. The gain in value of BP’s reserves will be much, much greater than the cost of paying for the damages. Especially since most of those damages were distributed to Mr. Obama’s political cronies.
      Perhaps the new Congress should investigate the BP oil spill to determine if the conspiracy existed. http://commonsense21c.com/

      Report Post » tobywil2  
    • @leftfighter
      Posted on December 29, 2010 at 8:41am

      Huh. They‘ve always told us drilling for oil isn’t instant relief, and that it takes about 8 years from start to finish, or lease to exploration, to drilling, to testing, to suppling. The argument‘s always been used to explain why we don’t drill to ease today’s oil supply. With this kind of prediction being made, why aren’t we thinking about drilling today for 2018 relief?

      Now wrap your mind around the fact that there are 57,000 orphan oil & natural gas wells in the U.S., most of which had been producing wells prior to the oil bust in 1986, and they’re ostensably ready to go back into production with minimal cost, time, or effort. How many of them could be producing and knocking down prices within a year or two?http://www.rrc.state.tx.us/commissioners/carrillo/press/energytestimony.php

      8 years from now, $5 gallon of gas, and something can be done today but they’re not doing it. That means when we’re paying $5 a gallon at Christmas, 2018, we can blame Obama and do so legitimately.

      Report Post » @leftfighter  
    • Major Infidel
      Posted on December 29, 2010 at 9:26am

      Nudge.

      Report Post » Major Infidel  
    • ReaganBaby
      Posted on December 29, 2010 at 11:19am

      Obvious, We cant have another oil spill like the one we saw in the Gulf this year, I mean look how that destroyed all our beaches… oh wait did it? oh that’s right mother nature fixed herself. Well it must be because it would not be fair to other nations who have to pay more for fuel, I mean America is just too darn greedy and we are taking from everyone else in the world… right?

      Report Post » ReaganBaby  
    • JESUS-IS-LORD
      Posted on December 29, 2010 at 12:20pm

      Is this supposed to be shocking? Americans voted for a Muslim president! Now that’s shocking.
      America is coming to an end soon, does anyone remember the Roman Empire? No.
      Did you honestly think we were going to rule this world forever? Foolishness!
      Read the Bible for the complete truth, specifically the book of Revelations, then ask God to forgive you for your ignorance.

      Report Post » JESUS-IS-LORD  
    • tower7femacamp
      Posted on December 29, 2010 at 12:42pm

      I say more like $7

      Report Post » tower7femacamp  
    • docvet
      Posted on December 29, 2010 at 4:52pm

      Two_foot: We are, but for natural gas. Japan has had vehicles running on NG for over 30 years. Sure we won’t be able to 0-60 in 5 seconds, but as the Saudi Arabia of NG, we will be able to get from here to there when few others can (and NG doesn’t need refineries).Then we can tell the middle East we will take one tanker a year for lubricants – on second thought, skip that, we have that much oil in Alaska as lon as we are allowed to drill there.
      Remember in November and that we surround them, not vice versa!

      Report Post »  
    • jmparrish
      Posted on January 1, 2011 at 7:05am

      We need to get the government to tell the car companies that we are switching over to All American Natural Gas to fuel our cars we have hundreds of years of supply lets use it. . .its time to convert to our own fuel and tell the muslims to f-off you dont get any more of my money.

      Report Post »  
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