Usatoday: "former Oil Exec: $5-a-gallon Gas On The Way"

[Jeff Porter]

"Over the next several years, as demand growth approaches 100 million barrels a day and the industry production falls short, yes, I believe later this decade we'll see $5 a gallon and possible shortages of fuel in some parts of the world," he said.

Hofmeister paints a gloomier picture of gasoline prices than many analysts, including the U.S. Energy Information Administration, which predicts U.S. gasoline prices will average $2.33 this year and $2.72 in 2016. But he also feels that the perception of a "glut" in world oil production now is overstated, with supply outpacing demand by only 1 million barrels a day or so.

Some of his former peers in the oil sector share his sentiments regarding the oil oversupply, and its impact on oil prices.

"Most of us in the industry are surprised that it's fallen as hard and fast as it has," Ryan Lance, CEO of ConocoPhillips, said at a Center for Strategic and International Studies. "I don't know that I have a real good answer to that question, other than it doesn't feel like the fundamentals would support that kind of fall."

More at:
http://www.usatoday.com/story/money/2015/01/19/gas-oil-five-dollar-gallon/21865975/

Thanks Paladin.

It is truly hard for me to believe that gas will avg $2.72 in 2016. I suppose it could be at $2.42 on Jan. 1 2016 and $3.02 on Dec. 31, that gets to the avg, but I can't see gas costing in my part of the country less than $3 on Jan. 1, 2017.

I'm very thankful for sub-$2 gas! As ZZ Top said.... "I wanna thaaaank yoooouuuu....".

 

[Jim H]

Currently it is $1.55 per gallon in Las Cruces and continuing to drop.

 

[BlioKart]

Lowest in my area is 2.24

 

[tazairforce]

Lowest in my area is 2.24

The best I can do here is 1.96, I'm happy with that.
BUT it want last!!! Mabey a con between Big Oil and the SUV makers to lull some into going with Bigger vechiles.

 

[BlioKart]

The best I can do here is 1.96, I'm happy with that.
BUT it want last!!! Mabey a con between Big Oil and the SUV makers to lull some into going with Bigger vechiles.

Its a pissing match to the lowest price to see who will bow out so they can in turn raise the oil price. Its trying to control the monopoly of oil. People being idiots and buying big SUV's and trucks is due to people shortsightedness.

 

[Catia]

Lowest in my area is 2.24

My area is $1.87

 

[ross]

I saw a brand new crew cab four wheel drive Ford one ton pull into the parking lot at work today, and one guy get out. I work on a nuclear reservation that is 40 miles from the nearest bedroom community. The truck was black and spotless, will probably never go off road. He NEEDS the four wheel drive in case it snows. I live in a desert, we get 7 inches of moisture annually. Every mile he puts on that truck it depreciates, if you need one fine but it is not a commuter car, leave it home, preferably under cover and buy a Geo metro to pack you and your briefcase to work.

 

[eddie66]

$2.08-$2.23 in my area of Florida

 

[eddie66]

I saw a brand new crew cab four wheel drive Ford one ton pull into the parking lot at work today, and one guy get out. I work on a nuclear reservation that is 40 miles from the nearest bedroom community. The truck was black and spotless, will probably never go off road. He NEEDS the four wheel drive in case it snows. I live in a desert, we get 7 inches of moisture annually. Every mile he puts on that truck it depreciates, if you need one fine but it is not a commuter car, leave it home, preferably under cover and buy a Geo metro to pack you and your briefcase to work.

I have friends that would still drive that truck even if you gave them an Elio. Mostly because they always have, and that's just how it is. Some folks just don't care. I have been almost laughed at for wanting an Elio.

 

[CheeseheadEarl]

I have friends that would still drive that truck even if you gave them an Elio. Mostly because they always have, and that's just how it is. Some folks just don't care. I have been almost laughed at for wanting an Elio.

I'm guilty lately. My truck sees more miles lately, because it's more enjoyable to drive and the low prices of gas lately have made the weekly $ difference minimal. The commuter car only runs 2-3 days a week vs 5 when gas was $3+.