John Hofmeister, former president of Shell Oil, believes the $5 gas will be average in 2012 here in America. During a recent interview, Hofmeister, who left Shell Oil in 2008 and now heads Citizens for Affordable Energy, predicts that the price of a gallon of gas will be $5, if not more, by 2012. Last weekend, the taped interviewed was aired on Platts Energy Week television. Hofmeister blames global demand, tighter supplies and government inaction for a increases at the gas pump. Already, the price for a barrel of oil has nudged it’s way over $90 on the New York Mercantile Exchange (NYMEX). The average price for regular gasoline exceeds $3 a gallon in many places across America. In some places, like California, it’s close to $4 a gallon for gas already.

CHICAGO, IL - DECEMBER 23: A gas station advertises gas in excess of $3 per gallon December 23, 2010 in Chicago, Illinois. According to AAA the national average price for a gallon gas is above $3 for the first time since October 2008. (Photo by Scott Olson/Getty Images)

Hofmeister said during the interview “Blackouts, brownouts, gas lines, rationing–that’s my projection based upon the current inability to make to make decisions.┬áThe politically driven choices that are being made, which are non-choices, essentially frittering at the edges of renewable energy, stifling production in hydrocarbon energy–that’s a sure path for not enough energy for American consumers. When American consumers are short or prices are so high–$5 a gallon for gasoline, for example, by 2012–that’s going to set a new tone. It’s going to be panic time for politicians. They’re suddenly going to get the sense that we better do something.”

Authoring the book, “Why We Hate the Oil Companies”, John Hofmeister started Citizens for Affordable Energy and has been promoting the ‘4-Mores’. More oil and other conventional energy sources, more energy production, more infrastructure and more technology. All sounds good, doesn’t it?

The problem with this bunch, and Hofmeister, is that he, and his group, are part of the carbon tax and CO2 crowd. They are all for the Obama Cap and Trade scheme, which, while abandoned in the Senate, is now rearing it’s head again through the Executive Branch and EPA regulators. A stripped-down version will start by only taxing greenhouse emissions for just power plants and other forms of energy production. But, we all know that once the camel sticks it’s nose under the tent, it will soon occupy it completely.

So, it would appear that the former president of Shell Oil, John Hofmeister, is predicting $5 gas by 2012 as a possible ruse to regenerate the debate on carbon tax and carbon trading. Gas prices are already rising thanks to the increased cost of oil futures on the New York Mercantile Exchange. Even without changes in global demand and supplies, the looming inflation will by itself send gasoline prices to $5 a gallon by 2012, if not far more.

A sign displaying gas prices all above $3.00 is seen in Silver Spring, Maryland on December 23, 2010. The national average price for a gallon of gas is above $3 for the first time since 2008 and is the highest ever for the holiday season. UPI/Kevin Dietsch Photo via Newscom

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