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

[Paladin4Elio]

"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/

 

[Puna bob]

I have no doubt that the oil companies will ask as much for gas as the consumer will pay.
I am afraid that Americans didn't learn their lesson and will revert to the giant SUV and trucks, Which is fine if that is what you need for your regular usage.

Most seem to buy big cars/trucks as a status symbol, I used to see them commuting to work on the 405 all alone in this monster
probably getting 15 MPG. I guess if you're rich conservation isn't as important as flash.

 

[BlioKart]

One reason I want an Elio. I am making an investment on my future ability to go to work and move around when we do have 5$ a gallon gas. I know the cheap gas wont last. And I know people are out buying big guzzlers now I noticed a number of new SUV's and trucks around my area.

 

[wheaters]

They aren't making no more oil....

There's a finite quantity down there.

 

[Mrtoycrazy]

I hope atleast we make it through the year with the cheap gas.

 

[wheaters]

Same here, in UK it was as high as £1.35 per litre or more.
I think I worked that out to be about the equivalent of about $7.40 a US gallon at the time.
Now it's down to £1.06.

 

[Mrtoycrazy]

So about $5 .75 US ,that's still pricey.

 

[Hotscoots]

There are folks that want $5-$8 per gallon prices in the USA . These "folks" are currently in office .

 

[Norahsbed]

On another note, last week I read an article where some Saudi Prince stated oil will settle in the $50 a barrel range and stay there. You betcha! The Middle East controls the worlds oil prices and the planet is at their mercy. When we aren't using as much oil, the market goes down, so we start to use more and then the price goes back up. People in the U.S. seem to have short memories, hence the increase in purchases of gas guzzling SUVs, trucks and big engine sedans. Had we learned our lesson in the 70s, with gas shortages or more recent $5.00+ a gallon gas, we would be a nation of small, fuel saving vehicles. We're not! Not yet anyway. Let's go Elio! In the mean time, the money I'm saving at the pump now, goes into savings. So........when the price goes back up, it won't hurt my wallet as bad and hopefully there will be Elios in my driveway and I'll still be saving at the pump!

 

[Chris F]

Take what you save on gas over the next year and use it pay for your Elio.

I have been involved, in a minor way, with a number of companies in the oil & gas business. Every year, they devise new and better ways to squeeze more oil & gas from existing known sources and find new sources. The shale oil & gas boom is just one of these. Some wells in PA have produced oil and/or gas for 100 years. They just get better at bringing it up from under the ground. At one time, oil companies extracted only a fraction of the oil they knew was in a field. As prices increased, they found ways to get a higher and higher percentage out of the ground. I believe that the current oil price levels are temporary. As oil prices rise again, more marginal fields will get exploited and people will go back to looking for more efficient transportation. This has all happened before, and it will all happen again.