A CNN Money article published yesterday included a prediction about gas prices made by John Hofmeister, former president of Shell Oil. He said that Americans could be paying $5 per gallon of gasoline by 2012. In response, this designer of “Will Work for Fuel” merchandise says, “Tell me something new.”
Since President Barack Obama took office in January 2009, I’ve published several posts proffering predictions related to the prices of products provided by the petroleum sector (pardon the alliteration.) Among them were the following 2009 posts:
- On Feb. 27, I shared an ominous worst-case-scenario prediction;
- On June 15, I shared a post about gasoline prices approaching $5 per gallon by 2010; and
- On June 23, I posted a warning that Waxman-Markey Climate Change legislation would cause gas prices to reach $4 per gallon and “create huge disincentives for the production of America’s abundant natural gas resources, and force jobs and productive capacity overseas.”
The most-troublesome prediction, however, is one I shared March 3, 2010, in the post, Sobering Reality: $7 Per Gallon Gas. It linked to The New York Times Dot Earth blog story about a prediction by Harvard researchers. They said Americans may have to experience paying $7 per gallon for gasoline in order to meet the Obama Administration’s targets for cutting greenhouse gas emissions. Ouch!
As one of the biggest advocates of a Drill, Baby, Drill policy, I’m pleased that such predictions have been made and thankful that they haven’t come true. At the same time, I’m cautious, because the national average retail price of gasoline recently broken the $3 mark for the first time in a long time, according to GasBuddy.com (see chart above). In other words, we’re not out of the woods yet.
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