$5 A Gallon Gas Forecast Has Ex-Shell Exec Making Headlines

December 28, 2010

Mark Memmott

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 recovery has brought demand back to where it was before. Economic growth means even more demand. But the U.S. Government is prohibiting expansion of U.S. domestic crude oil production which puts upward pressure on global crude oil prices."

Hofmeister's media blitz began with this appearance on the syndicated Platt's Energy Week:

Hofmeister is now CEO of Citizens for Affordable Energy, which refers to itself as a "public policy education firm ... [that promotes] sound U.S. energy security solutions for the nation, including a range of affordable energy supplies, efficiency improvements, essential infrastructure, sustainable environmental policies and public education on energy issues." Copyright 2010 National Public Radio. To see more, visit http://www.npr.org/.