Roulston Energy Partner John Hofmeister on Future Oil Prices and Ramifications of IEA’s Announcement to Release 60 Million Barrels of Oil

July 26, 2011

Roulston Research Energy Partner John Hofmeister recently appeared on CNBC to talk about the ramifications of the IEA’s announcement to release 60 million barrels from its oil reserves to lower oil prices even though they have been consistently rising over the past month. The United States supports IEA’s decision and cites the situation in Libya has caused the oil supply disruption. John believes this is just a political tactic that is being used because OPEC has made it clear that it doesn’t care what happens to Western oil prices because they want high crude prices. 60 million barrels of oil is not even enough to meet the total oil consumption in one day (about 85 million) so its effects will be minimal and the IEA will eventually have to refill its reserves at higher prices.

 John believes that the United States isn’t serious about domestic resource production since it has prohibited most drilling in the Gulf of Mexico, is slow to trickle out drilling permits, and has lawsuits pending against the government for drilling permits already handed out. He says that it is not just this administrations fault but also Congress who has been reluctant to increase domestic oil production. Due to these problems John believes that the price of gas will be $5 a gallon by the 2012 Presidential elections and a barrel of oil will be north of $150 by next spring or summer. You can hear his whole interview at http://video.cnbc.com/gallery/?video=3000034520

Upon retirement from Shell as President in 2008, John Hofmeister founded and currently heads the nationwide membership association, Citizens for Affordable Energy. This Washington, D.C.-registered, public policy education firm promotes sound U.S. energy security solutions for the nation, including a range of affordable energy supplies, efficiency improvements, essential infrastructure, sustainable environmental policies and public education on energy issues. You read more about Citizens for Affordable Energy and his recently published book Why We Hate The Oil Companies at his website http://www.citizensforaffordableenergy.org/

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