Gasoline prices are headed for $5 a gallon in many locations in the United States this year, says John Hofmeister, founder of Citizens for Affordable Energy and the former CEO of Shell Oil’s U.S. operations.
Global demand will rise and pressure supply, while U.S. politicians aren’t doing anything to ease prices at home such as allowing for significantly more drilling.
“What’s really unprecedented is developing countries, particularly China and India, have this insatiable need for more oil and that has not been taken into account when we think of public policy in this country,” Hofmeister tells CNBC.
“So while we may be producing a bit more oil in this country, and while demand is down a bit, on a global basis, I’m afraid we face a continuing onslaught of prices creeping ever higher,” Hofmeister says. “I hope I’m wrong on this. I’d love to be wrong on this. source – Money News