Former Shell C.E.O. Says Gas Prices Headed for $5

Posted by Jim Spence on Monday, January 3, 2011
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Washington Times - Oil and gasoline prices have risen to their highest levels in two years, and analysts say prices could shoot up dramatically this year as the thirst for fuel grows in the U.S. and around the world. The former head of Shell Oil has warned that gas prices could hit $5 a gallon by 2012 because of fast-growing demand in emerging countries such as China and India, where more and more people are buying cars, combined with restraints on drilling in the U.S. in the wake of last year's disastrous Gulf oil spill. Less-worrisome forecasts are calling for a rise in gas prices to $3.75 a gallon by spring from today's $3.07 average level, with premium crude prices easily exceeding $100 a barrel this year as demand for oil around the world returns to pre-recession levels last seen in 2007. Read full story here:
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1 comments:

Anonymous said...

A rise in gasoline prices like this could very well precipitate the beginning of another recession. A sharp spike in gasoline and energy prices preceded the financial melt down in 2008. The democrats immediately turned their ire on George W. Bush and the oil companies and demanded that measures be taken to reduce the price of gas. It'll be interesting to see what Obama does and whether or not the democrats will as equally demanding of Obama when the music stops and there's no chair in sight. The republicans will have an easy scape goat as the Obama administration is on record deliberately attempting to legislatively force energy prices higher.

January 3, 2011 at 1:24 PM

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