Dire Future of Gas: $12-$15 per gallon

[LaWood]

Robert Hirsch, Management Information Services Senior Energy Advisor, gave a dire warning about the potential future of gas prices on CNBC’s May 20 “Squawk Box”. He told host Becky Quick there was no single thing that would solve the problem, due to the enormity of the problem

“[T]he prices that we’re paying at the pump today are, I think, going to be ‘the good old days,’ because others who watch this very closely forecast that we’re going to be hitting $12 and $15 per gallon,” Hirsch said. “And then, after that, when oil – world oil production goes into decline, we’re going to talk about rationing. In other words, not only are we going to be paying high prices and have considerable economic problems, but in addition to that, we’re not going to be able to get the fuel when we want it.”

“I don’t attempt to predict oil prices because it’s been impossible in the past,” Hirsch said in an e-mail. “We’re into a new era now, and over the next roughly five years the trend will be up significantly. However, there may be dips and bumps that no one can forecast; I wouldn’t be at all surprised. To me the multi-year upswing is inevitable.”



Maxwell’s original $12-15-a-gallon prediction came in a February 5 interview with Energytechstocks.com, a Web site run by two former Wall Street Journal staffers.



“[Maxwell] expects an oil-induced financial crisis to start somewhere in the 2010 to 2015 timeframe,” Energytechstocks.com reported. “He said that, unlike the recession the U.S. appears to be in today, ‘This will not be six months of hell and then we come out of it.’ Rather, Maxwell expects this financial crisis to last at least 10 or 12 years, as the world goes through a prolonged period of price-induced rationing (eg, oil up to $300 a barrel and U.S. pump prices up to $15 a gallon).”

http://www.businessandmedia.org/printer ... 45247.aspx

[Darrel]

"...others who watch this very closely forecast that we’re going to be hitting $12 and $15 per gallon,” Hirsch said.

DAR
Cost to fill the two 21 gallon gas tanks on a Hummer at $15 per gallon: $630.

Priceless.

D.

(ps. rather skeptical of the forecast btw)

[Barbara Fitzpatrick]

Of course we could slow that down significantly and give ourselves a chance to replace gasoline with something else (a combination of efficiency, ethanol, and EVs is my choice) by going to rationing and price caps now - but American's wouldn't stand for it. Only a "just war" permits that kind of action. So we've had the boom and we're going to get the bust.