Roulston Energy Partner John Hofmeister on Global Energy Demand and Affects on Big Oil Companies

March 26, 2012

Rising gas prices have brought the United States energy policy back into the forefront of the American people. Gas prices are consistently over $4 per gallon now and in some parts of the country have already surpassed John Hofmeister’s prediction of $5 per gallon in 2012. While wind and solar are novel ideas both are in their infancy right now and start-up costs are very high, which is why 95% of domestic energy consumption comes from traditional oil, natural gas, coal, and hydropower. John believes because of this we need to develop a long-term energy plan that looks at 0-10, 10-25, and 25-50 years so we can transition intelligently with the technologies we know. Demand from China and India are increasing at 10-12% a year and both have little oil resources so both will rely heavily on imports to meet the increasing demand. China alone had 20 million new cars purchased last year and expect another 20 in 2012. Therefore, the United States will be competing with these two countries for oil imports over the coming decades and big oil companies such as Shell, BP, and ConocoPhillips will not be able to meet the demand. The United States currently uses 18 million barrels of oil per day and John believes that the country should increase domestic oil production from 6 to 10 million barrels a day just like in the 1970-1980’s, convert 3 million from natural gas into methanol, 2 million from ethanol, 2 million from hydrogen fuel cells, and create deals with Mexico and Canada for energy production in exchange for technology to meet demand. To hear his whole interview please visit http://www.youtube.com/watch?v=Xfaz9VTPMQk.

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/. John will be participating in our upcoming Energy Roundtable with Kevin Lindemer in New York on April 9th at 1 PM. Please contact Michael Igelnik at migelnik@roulstonresearch.com if you are interested in attending or dialing-in for the event.

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