Gas Prices Will Rise to $5 by 2012, Shell Exec Warns

Gas prices will climb to $5 and rationing will be necessary by 2012 if ineffective governing continues, a former Shell executive said Tuesday.

John Hofmeister, former president of Shell Oil, told the Platts news service that political indecision could lead to all-time high prices at the pump and national shortages as soon as a year down the road.


“The politically driven choices that are being made, which are non-choices, essentially frittering at the edges of renewable energy, stifling production in hydrocarbon energy — that’s a sure path for not enough energy for American consumers,” Hofmeister said, according to UPI.

He predicted that lawmakers will panic when they “suddenly” realize they need to rework the U.S. energy strategy around 2012.

“When American consumers are short or prices are so high — $5 a gallon for gasoline, for example, by 2012 — that’s going to set a new tone,” he added.

Hofmeister also expects that the newly Republican-controlled House will make for political gridlock in 2011, fixing energy dependency on hydrocarbons and preventing the exploration of sustainable methods.

The national average price of unleaded gasoline rose Tuesday to $3.049 per gallon, up from $3.042 Monday, AAA said. Oil was up 10 cents at $91.03 a barrel on the Nymex.


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