• Dec 28, 2010
With Shell Oil, that's exactly what it is compared to what we'll see just one short year from now. While speaking with Platt's Energy Week Television, John Hofmeister said that he fully expects gas prices to be above $5.00 per gallon by the end of 2012. That stance puts Hofmeister firmly in the worst-case scenario club, though other analysts are barely any jollier in their predictions.
Tom Kloza, who serves as the chief oil analyst with Oil Price Information Service, believes that Hofmeister's predictions will come true, just not in the time-frame that the former Shell head honcho has predicted. Instead, Kloza says that he expects $5.00/gallon fuel to show up within the next decade. If so, we can probably expect to see a repeat of the financial shock that occurred when fuel prices shot up in mid-2008. The predictions are enough to make us a little queasy, so you have to really feel for our friends in Blighty – the UK recently saw gas prices spike to $7.30 a gallon. What will their prices be in 2012?

[Source: CNN Money | Image: Kari_Marie via cc 2.0]


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  • 140 Comments
      • 4 Years Ago
      GTV4RUDY: One more thing, back in 2008 it was speculators that manipulated the prices. A case of the stock market making the price as opposed to supply & demand. Don't you love it when capitalism goes off the rails or gets hijacked and the practice strays far from the principle?

      Oh no I didn't just take a poke at our beloved wayward child. Oops my bad.

      BTW: Gas prices NEVER got to $5.00 per gal. in NJ., At least not in my neck of the woods.
      • 4 Years Ago
      GTV4RUDY: The only real problem I had with your statement was your declaration that this was a REALITY, when in actuality it is not.

      Can we get to $5.00 per gal. for gasoline? sure we can. The REALITY is, we are not there. Sure India and China are increasing consumption. However, its not the doomsday situation you are making out to be.

      As far as increased prices go, speculators, the oil companies and a catastrophe are a bigger threat to the stability of prices than India, China or OPEC.
      • 4 Years Ago
      Who ever first made the arm/leg gas sign is a true American hero. Macarthur grant type genius.

      Hard to find who first did it. But they deserve something for such a perfect caricature. It will forever represent the gas crisis (or whatever it was).

      • 4 Years Ago
      I have the perfect solution that is relatively quick and easy to begin implementation. Lift the ban on new oil drilling off the coast AND on land. I guarantee you would see a sharp decline in oil prices as we stop being so dependent on mid-east oil resources and become much more self-sufficient.
        • 4 Years Ago
        George...

        Spoken like a true communist. I guess if you own land, it's not really your land either, it belongs to the world? That's not really your property, it belong to the planet? So no one has personal property rights... its just community property if its a resource that would benefit someone else? Where do you draw the line?

        I'm all about encouraging alternative energy use, but when it is technologically and economically viable. We are a long way away from getting off oil anywhere in the near future so that idea has no real land to stand on in the real world.

        Many liberal ideas may sound great as long as they are just ideas. But implementing them into the real world where actual results really do matter is an entirely different matter altogether. By the way, it would be great if everyone just put down their guns and held hands around the world singing happy songs... but just like every other liberal ideology, its just not realistic.
        • 4 Years Ago
        Every time I see a comment like this I can only shake my head in disgust. "Our" oil? When are you geniuses going to figure out that oil is a WORLD commodity; No matter WHERE it comes from. Just like the Pacific Northwest lumber, all went to Japan in the eighties, driving up building costs right here at home, "Domestic" oil will go the same route. The only way to "guarantee" (and you are in NO position to make such an idiotic claim) that oil and fuel prices will come down, is by eliminating most of the current demand for it. You do that with alternatives; Not more of the same.
        • 4 Years Ago
        George...

        By the way, if your idea of all oil belonging to the world is true for everyone, not just us, then why not the middle-east? According to what you just said, Saudi Arabia has no right to even sell "their" oil to anyone else if it belongs to the world. They should just allow us to go over there and pick it up ourselves.
      • 4 Years Ago
      I don't buy it.

      Maybe I'm just silly, but I remember a recent oil tycoon's prediction (2008) about 2009 being completely off (he consequently lost a bet to John Stossel even after the deadline for his price got moved to a later time).

      If anything it would be 4 and a consequence of the economic climate, but I just don't buy it.

      Just because you were once captain of a billion dollar oil producer doesn't mean you're a fortune teller.
      • 4 Years Ago
      Do these idiots , think , by screwing the American people..... by jacking gas up to beyond the pain threshold Is the way to go ???
      Wait till the ripple effect takes hold , and the country comes to a screeching halt !!!!!!!
      Then What are you stupid... controlling... wealthy mongers... going to do ????
      Nothing like shooting yourself in the foot !!!!!!!!!!!!!!!!!!!!!
      bunch of over intelligent dumb Asses !!!!
      • 4 Years Ago
      What has happened with the Bakken oil field up in North Dakota? Supposed to hold more oil Then Saudi Arabia. And another find just as big to the south of the Bakken field. We should have all the oil we need without buying overseas. Please I would like to hear more about it.
      • 4 Years Ago
      The world's wealthy are writing off the American economy. The Republican party is working now to take down the unions by allowing the states to fail, so that they won't have to fund union pension funds. In the next Congress they will push for legislation that will give States the right to go into foreclosure, relieving them of the obligation to the pensions. Since there is only 9% union participation now in the US, and maybe %3 of that public pensions, they will have been successful in their 30 years of propaganda of anti union rhetoric if they are allowed to succeed at doing this. And since unions are a direct result of people fighting against corporations and Wall Street greed to control wages, success will lead to a country that will have a small middle class and a very large class of poor people in the streets, just like before the before and after the depression, when FDR came to power, and reset the American economic system with the New Deal, and prosperity came back to our country until Reagan and the anti government and union, right wing took control and worked their way back into our main stream media. They have taken control of the Republican party and most of the Democratic party as the jobs are being shipped out and price of commodities go up like oil, for profits on Wall Street and the oil companies who control Congress legislation through lobbyists. Well come to the largest third world country in the world, the US.
      • 4 Years Ago
      All I know is I'm sure glad I didn't sell my motorcycle this past summer.
      • 4 Years Ago
      Well, we have already hit the peak oil and the oil production is decreasing every year and we can expect the oil prices to keep going higher.

      Don't be surprised if you see the UK price of $7.40 a gallon here in 2012 !!!
        • 4 Years Ago
        The problem is that we have absolutely no idea where the peak of oil production exists. As to the USA the self appointed fools who talk down to us, the unwashed, do not take into consideration the amount of oil available off the east and left coasts. They also ignore the incredible amount of oil from shale in the central mid-western states which is now producible at last report at around $10.00 to $20.00 per barrel.
        The price of oil is now being driven, again, by the speculators in the commodities markets, now that the home market bubble has burst. The hedge funds have gone into the commodities market (read oil) and are driving the price out of sight. The chinese and indians are much less of an effect on that market than the speculators.
        Blame the boys and girls of the commodities markets.
      • 4 Years Ago
      Then maybe people will wake up and let them drill in Alaska!!
      • 4 Years Ago
      See a lot of people looking a lot of places for blame. Bottom line look no farther than the Republican party. In Nov the Republicans took the house, big oil owns every Republican there is, the house is the people that can investigate price gouging and big oil know their Republicans will not call for an investigation. Keep voting Republican and yes we will see 5 DPG gas. And our economy will go right back to where the Republicans put it in 2008.
        PAUL
        • 4 Years Ago
        Gas was at 1.88 national average when Obama took over with a dem congress and senate. Republicans havent even been seated yet and had no say in lawmaking in the last two years. Dems and Obama bailed out GM and the crappy volt national GAS average now is according to AAA at 3.04 for regular. please leave politics out of this unless you plan to address the devaluation of the dollar and all the spending of the lat 10 years wheater it is wars or implemantation of the big brother nanny state we subscribing to latley there is only three currencies worth anything these days gold silver and oil unless we straighten out this debt mess and security overkill were doomed let America get back to business get govt out of business let competition come back and prices will fall services will be better and this country will thrive again
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