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

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Submitted by Mac Slavo of SHTFplan.com

Former Shell Oil Chief Predicts $5 Gas by 2012

Though he’s no longer running one of the largest companies in the
world, former President of Shell Oil John Hofmeister warns that the
outlook for gas prices in the coming decade is not looking good:

I’m predicting a worse outcome over the next two years,
which takes us to 2012 with higher gasoline prices, uncertainty as to
the future of hydrocarbons, more regulation on the hydrocarbon industry
based upon who the administration is today…

And what I fear the most is that by 2012 prices are so high that we
have a backlash from the electorate and we go into reverse and we go
back to a hydrocarbon only type of a future, maybe with some nuclear,
instead of moving on in the 21st century.

I’m predicting, based upon the moratorium in the Gulf of Mexico, up
to a million barrels a day of US production gone because of the politics
of freezing drilling in the Gulf.

The headline is the moratorium is lifted, the reality is you can’t
get a permit… I’m expecting no new drilling for two more years at least.

If we stay on our current course, within a decade, within ten years, we’re into energy shortages in this country big time. Black outs, brown outs, gas lines, rationing - that’s my projection based upon the current inability to  make decisions.

When the American consumers are short, or when prices are so high - $5 a gallon for gasoline by 2012 - I believe that’s going to happen
- that’s going to set a new tone, it’s going to be panic time on the
part of the politicians, they’re going to suddenly get some kind of a
sense we better do something.

The scary thing is that Mr. Hofmeister is basing his $5 per gallon
gasoline prediction on supply/demand issues, not even taking into
account the unfettered digital creation of dollars by the Federal
Reserve.

If we’ve learned anything in the past few years, it should be that
government is totally incapable of taking the necessary steps to prevent
a problem before it happens. We saw it in the housing crisis in
2007/2008 and we’re seeing it now in the state budget crisis. Meredith
Whitney explained it best in a recent 60 Minutes interview
when she was asked why government wasn’t taking action to mitigate the
state budget crisis, “because they don’t pay attention until they have
to.”

If Mr. Hofmeister is correct about supply tightening over the next
couple of years, we’ll begin to see global oil shortages. This is not
only going to raise the price of gas, but everything else dependent on
oil, which is, well, just about everything else - manufacturing,
transportation, food, you name it.

Watch John Hofmeister discuss oil shortages and the coming energy crisis: