Enjoying those prices at the pump? You might not want to get used to them. A former top oil executive says the price of gas at the pump could double by the end of the year.
In an interview with CNBC, former Shell Oil President John Hofmeister predicts that U.S. oil could skyrocket from the current levels under $48 a barrel to $80 by this fall, just as consumers are getting used to the windfall from lower gas prices. That would force gas prices to double, from the current $2 to a whopping $4 by next winter.
The reason, he says, is the oil companies are masters of the simple economics of supply and demand.
"The industry is the best in the world at cutting costs when they have to reduce spending. What's happening is we're shutting down drilling rigs," Hofmeister said. "Not completing the wells that have just been drilled. And we're going to eat off the surplus oil out there probably by mid-year."
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2 comments:
"The reason, he says, is the oil companies are masters of the simple economics of supply and demand."
It really sounds like the opposite is true. If they were "masters", they would be able to regulate an even, stable market that would make America a more regularly productive country with level pricing and competitive marketing to reach a stable economy.
So, since that's not happening, it's just lather, rape, repeat.
They think we are stupid, but I guess we may be because we have yet to figure out how to beat this robbery conspiracy.
One day, the blame is on the unions. Next day, it's on some "expert" who gets paid relative to Oil profits. Who do you believe.
Delaware is so out of control that their Governor tells you more taxes are needed because casino operators are not making enough profit. He's doing this now for the 3rd year in a row.
Mike Castle got away with this kind of behavior for years. Then it ended. It will end too for the Governor.
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