$5 gas coming to Houston?
Former Houston oil exec predicts $5 a gallon by end of '12
Former oil exec predicts $5 a gallon by end of '12
A former Houston oil executive predicts drivers could be paying $5 for a gallon of gas by the end of the year, and says politicians in Washington D.C. are to blame.
John Hofmeister is the retired president of Shell Oil. He currently runs the non-profit group Citizens for Affordable Energy.
"It was actually December, 2010, when I predicted $5 gasoline by the end of 2012," said Hofmeister. "And, I said then, 'I hope I'm wrong.' My concern is I won't be wrong."
Some energy price analysts have said Hofmeister's prediction is likely off by at least $1 -- instead, they forecast a price of $4 a gallon by the end of the year.
But Hofmeister said nothing has changed his prediction just yet.
"My big problem with $5 gasoline is that it's an invisible tax on the American people that they didn't vote for," he said.
"They didn't have anything to do with it, other than be victims of their own government to get that tax."
Hofmeister blames politicians of both parties, including the president.
"One side competes with the other side and we end up with nothing other than high prices, [nothing] other than future shortages," said Hofmeister.
He points to big energy changes across the globe, including India and China's booming populations and their demand for hundreds of millions of barrels of oil. Combine that with a greater dependence on foreign countries that control oil supplies, and Hofmeister said it forces the U.S. and the rest of world to keep a closer eye on political unrest.
Despite those concerns, Hofmeister argued that American politicians will remain the same. He said both parties push the extremes of energy policy, pitting issues like drilling for oil domestically against environmental concerns without a middle ground.
The result, he said, is a failed energy policy with higher oil and fuel prices with no compromise in sight.
"Fix the problem," said Hofmeister. "It's so eminently fixable. The fact that they can't or won't is an embarrassment."
Citizens of Affordable Energy is pushing for more oil drilling in the U.S. and research and development of alternative fuels. Hofmeister believes those policies are the best way to start the process of energy independence. He said that also means energy companies must be willing to change the status quo.
Hofmeister doesn't mind ruffling feathers. He said politicians, lobbyists and even some energy companies don't like what he says. However, his nationwide speaking tour is booked six months in advance, and he says people are listening to his ideas.
"It will take a crisis to move this government," said Hofmeister. "I think if the people spoke up, we'd have a different outcome."
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