I hope not USA Today- Former oil exec: $5-a-gallon gas on the way (h/t The Daily Signal) Now, with national gasoline prices currently averaging $2.05 a gallon, their lowest level since early 2009, the former president of Shell Oil 06is issuing another warning, telling motorists that their joy ride may end sooner than they think. The next round of high prices is likely to start later this year, as crude rebounds to the $80s and $90s, perhaps pushing to the $100 level by late in the year or early next, Hofmeister told me the other day after a trip to Calgary, where he was promoting natural gas as a transportation fuel. The triggering mechanism will be global demand growth relative to how much capital constraint gets baked into future plans for production this year and next. If new production capital is deferred and demand growth continues at 2% or more, well see capacity constraints during 2016, an election year of course, drive prices higher. Whether we reach $4 a gallon or push past, its too early to tell.
Posted on: Tue, 27 Jan 2015 01:27:40 +0000
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