Gas prices in the United States could rise to $6 to $8 a gallon if drilling ends, says John Hofmeister, former president of Shell Oil.
“The implications for the American consumer and our society and the domestic United States are very seriously at the front of what I think about,” Hofmeister told Yahoo! News.
The United States cannot stop drilling even though the BP oil spill has been deemed a major catastrophe, he said.
The county must to continue to produce oil, he said.
Rising oil would punish retirees and the poor first, Hofmeister warned.
“Prices could get to the point where fixed-income and low-income people are simply taken out of the personal mobility marketplace, which would be a shock and unnecessary because of our unwillingness to produce domestic resources,” Hofmeister said.
Once the economy rebounds, the price of oil will easily cost over $100 a barrel by the end of 2010 or during the first half of 2011, he said.
Oil has been trading in the mid-$70s as the economic rebound sputters along.
“Investors are fleeing riskier assets so they're dumping stocks and oil. The market may be overreacting a bit, but the jobs report shows that the U.S. economy is still struggling,” Victor Shum, an energy analyst at consultancy Purvin & Gertz in Singapore, told the Associated Press.
Goldman Sachs said in a report it is still expecting oil prices to stay in the $85 to $95 range for the rest of 2010.
© 2017 Newsmax Finance. All rights reserved.