Gas Prices in 2012

    • Gas Prices in 2012

      Ex-Shell Oil boss: $5-a-gallon gas possible by 2012

      After a couple years of relatively low gas prices, $5-a-gallon gas could come as soon as 2012, predicts former Shell Oil President John Hofmeister, according to CNN Money. He gave his forecast in a television interview.

      The good news is that $5 is his worst case prediction. Other analysts, including Tom Kloza of Oil Price Information Service, see gasoline reaching $5 a gallon in the new decade, but not by 2012. A gallon of regular gas averaged $3.06 a gallon yesterday, AAA reports.

      The predictions take into account a growing global economy tightening the world's oil supply. Holfmiester, seen the photo at right from 2006, cites China's and India's growth and President Barack Obama's crackdown on offshore drilling as the primary reasons for the short-term gas hike.

      There's little that Americans can do to affect the price of oil, according to CBS News. According to the EIA, while it will take developed countries like the United States, Japan and Europe until after 2020 to reach 2007 levels of oil consumption, the developing economies of the world will bring us back to pre-2007 levels of oil consumption by the end of this year.

      World Oil and Gas Prices
    • Gas Prices will hit $4 per gallon by summer 2011 ?

      AAA: Gas to approach $4 per gallon by summer
      Alan Mauldin
      The Moultrie Observer The Moultrie Observer Fri Jan 21, 2011, 10:44 PM EST

      MOULTRIE — Motorists stung by gasoline prices that recently have topped $3 may feel an even bigger pain in the wallet in a few months with prices possibly reaching the $4 mark.

      Economic growth in Asia is fueling demand for gasoline, and investors are seeking to put more money into commodities as they fear inflationary pressures.

      "We started to see prices go up in September," said Jessica Brady, a AAA spokesperson in Tampa, Fla. "They've steadily gone up through the new year. You're probably going to see prices stay around that price range through the end of the month, maybe through February."

      During the spring and summer prices are expected to increase again, reaching a range of $3.35 to $3.75 depending on location, before easing again, she said.

      "I've been asked if it's going to hit $4," Brady said. "It's possible. If we do hit $4, I don't think that's sustainable."

      But if this summer’s hurricane season is an active one, it could cause shutdowns at Gulf of Mexico oil rigs, which could throw more volatility into the mix and possibly lead to more price spikes, she said.

      On Thursday, AAA's gas price gauge pegged the average price of regular unleaded across the country at $3.11 per gallon, up two cents from the previous week and 13 cents from a month earlier. A year ago the average was $2.73.

      "A big role in that (price increase) is the explosive growth from Brazil, China and India," said Aaron Johnson, an economics professor at Darton College. "In fact, the developing countries have outperformed the advanced economies, so that is certainly playing a role in higher gas prices.

      "On a smaller scale, I also believe that expansionary policies from the Fed are also causing gas prices to rise because investors, who fear inflation, take their dollars out of bonds and the stock market and into other commodities such as crude oil."

      Ultimately, he said, higher gas prices means higher energy and food prices for American consumers.

      "In addition to this being a burden to the consumer as they buy less for each dollar, this also places downwward pressure on businesses as energy and food costs drain their profitability."

      Motorists can help ease the pain somewhat by taking a few simple steps, Brady said. Basic auto maintenance, including clean fuel injectors and filters, keeping tires properly inflated and removing excess weight from vehicles can lead to a gain in efficiency of 3 to 10 percent.

      AAA also has a smart phone app available for iPhone and Droid models that steers drivers to the cheapest gas in the area, she said. Additional information is available at <link removed>

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