Shell Oil CEO: $5 Gasoline Looms on Horizon

Gasoline prices, currently averaging a little over $3.93 a gallon, can shoot up in the $4.50 to $5 range later this year, says Marvin Odum, CEO of Shell Oil Company, the U.S. unit of Royal Dutch Shell.

They can also fall off those highs quickly, depending on how fast the world can resolve tensions in the Middle East or other factors affecting demand.

"I think if you look at the range of possibilities of what could happen across the world over the next several months, that's certainly within the realm of possibility," Odum tells CNBC, when asked if $4.50-$5 gasoline were possible.

www.moneynews.com...

Not that this honestly comes as a surprise to me,but there you have it,coming from the horses mouth.
Better hurry up and *cough* take care of those ever looming middle east issues pronto

Let us hope this does not happen,the economy is horrible as it already is and many people are struggling to get by without increased gas prices.

Nice.

I am not surprised....a little P*ssed but not surprised.

What amazes me is how many people think it's the POTUS's fault and he can "fix it" or there is a production shortage and demand is high.

This is not the case. In the USA, demand is slightly down and production is slightly up.

It is futures speculation that is driving the prices. In other, developing countries, the demand is rising so big oil can raise the prices there... which raises prices everywhere. Big Oil was founded in the USA and I personally think they are all a bunch of dirty, selfish traitors...them and the commodity speculators that drive the prices of crude up to the levels we are now seeing. Big Oil needs to "remember the roots of their raising"...they came from here...they need to show some loyalty and patriotism toward getting our economy back on solid ground. To do otherwise is downright fiendish....not to mention astoundingly arrogant and selfish.

Teamwork and patriotism anyone?...anyone? No?...I thought as much...

and we'll take it, cuz that is what we do.

Read-only society.

Simple solution: Make crude oil no longer a "commodity" on the various exchanges. Without the speculation, the value drops. Case in point, gold. When gold was fixed at $35 per ounce it did not matter how much was exchanged, now it is $1800? Funny that the average worker does not earn anywhere near that a week yet they did when gold was no longer pegged.

As for president/congress's fault... Absolutely. Their job is to eliminate threats to personal security. Congress is specifically tasked with regulating the value of money. Imagine if the so called leaders of the world took as much effort in creating an easier life for the people they represent as they do in gaming the systems and bending the rules around themselves.

$5/gallon in the US will be an interesting time for those that live the life of luxury now. Keep in mind that all times any society is 9 skipped meals away from revolution.

reply to post by PerfectPerception


PerfectPerception,
Thanks for sharing this. It makes me a little angry because I remember when 5 would get me where I needed to go in a day when I was younger.
I swear I will walk or take the bus. Even might buy a moped. I encourage others to walk or take alternative routes as well. Unless you'd like your wallet to disappear as fast as your gas tank...

reply to post by PerfectPerception


Seems dirt cheap to me to be honest.

Sorry if that offends all of you Americans but i really think you should wake up to how lucky you are compared to the rest of us regarding fuel costs.

But the big oil companies can pull in BILLIONS in PROFIT each year.

Its OBSCENE raping of the economies of the world

reply to post by Zaanny


Now i do not want to find myself in the position of defending big oil as they are nasty bloodsucking corporations. However, fuel makes these companies very little in the way of profits (particularly in the UK). These companies actually make most of the money through the derivatives gleaned from oil, such as plastics, etc.

Fuel costs are so high because governments tax the hell out of it. In 2000, last time we had proper fuel strikes in the UK, they (government) revealed that a tanker of lorry contained around £33,000 of fuel. Of that, £27,000 was taken by the government in taxes - and the situation has only got worse since then.

There are loads and loads of things to protest big oil about. But if you want a change in fuel costs then protest your government, it is the only thing that will make a difference.

Terre Haute, Indiana : $4.04 a gal this morning. Don't live there, but go through there. Summer coming, more travel, there go the prices.

Gasoline in Venezuela costs about 12 cents a gallon, well below the $4 a gallon or more paid in most of the industrialized world.

articles.marketwatch.com...
do I actually have to say something to add to the above?
OK
****!

reply to post by Flavian


I lived in Scotland for a wile so I do know how much petrol costs over in Britain,I think it is outrageous no matter where we are talking about,except maybe Venezuela like danbones mentioned

Americans may have it good in comparison to a lot of countries out there,That is not to say that every individual is living the fat,comfortable rich life...Far from it...Unfortunately the majority of people outside of the states watch some hollywood movies,see and over hear lies and exaggerations from their peers or on the news...A lot of assumptions to be honest.

We struggle just like anyone else,depending on your job...if you are able to get one anymore...The days of prosperous,everyman can live their dream only in America are over I am afraid... that is what I see and have experienced.

I am ranting,nothing against you personally,just generalizing.

These high oil and gas prices have nothing to do with speculation and everything to do with supply and demand. Oil supply over the last 6 years has remained flat, while demand from china and India and oil producing countries is rapidly increasing this means that the U.S will have an ever shrinking slice of the pie to eat from. This is just the new world reality most Americans will have to become accustomed to as they are outbid by more productive Indians and Chinese for petroleum products. Perfect example of Americans being outbid by Asians is on the west coast where you have i think 4 large refineries yet the gasoline prices there are higher than other parts of the country like in the centrals states where they have an oil glut due to lack of pipeline transportation. My point is on the west coast they can easily transport that freshly refined gasoline to Asian markets and they are willing to pay more for gasoline so they can do productive things than the average American is willing to pay to drive to the mall to go shopping to buy the things the Asians are making.

Peak oil has come to town and its only a matter of time before the ATS community acknowledges that resource depletion is a reality and not some conspiracy theory drafted by the 'elites' to take down our economies it is also not a conspiracy theory crafted by big oil (which isn't so big anymore) to make monster profits.

By the way in the article I link it shows that government owned oil companies control more than 73% of the worlds oil reserves and guess what they are giving that oil to their own citizens first before they export it; just look at Saudi Arabia's gasoline subsidies.

reply to post by PerfectPerception


Hey, i have relatives in the States. A point i often make on these forums is that, regardless of location, people have pretty much the same problems in life. People really are not that different, whether from Khartoum or Denver.

That said, you still have cheap fuel!

just wondering here....
if people go paycheck after paycheck choosing between $5 gas to get to work, or the roof over their head, or food on their table.....
how long do ya think it's gonna take before they decide the food and roof is more important than the job that is costing $5 or more dollars to get to everyday???

the foundation of our little house of cards could get swiped out from underneath us if they raise the price too high.;

and personally, once the roof over my head goes and I am eating a meal every other day, well...
that's when I up and quit the job and head for open space to live off berries and nut and other edible treats that the forest provides for free!!!

these people need to learn, you can't get blood out of a rock!!!

reply to post by Flavian


I share your attitude,well said.

Yes,Gas could be a ton worse..I still remember how much it cost to fill up a small compact car in the U.K. and that was 10 years back.

I still am flabbergasted over the prices in Venezuela! Less wage comes with the territory though...Call me a dreamer

Originally posted by dawnstar
just wondering here....
if people go paycheck after paycheck choosing between $5 gas to get to work, or the roof over their head, or food on their table.....
how long do ya think it's gonna take before they decide the food and roof is more important than the job that is costing $5 or more dollars to get to everyday???

the foundation of our little house of cards could get swiped out from underneath us if they raise the price too high.;

and personally, once the roof over my head goes and I am eating a meal every other day, well...
that's when I up and quit the job and head for open space to live off berries and nut and other edible treats that the forest provides for free!!!

these people need to learn, you can't get blood out of a rock!!!

I am with you on that one,lets go!! oh...not yet...ok..ok I can wait for the sthtf

I feel like that could be one of the underbelly schemes in their ultimate monopoly game of stripping our rights,freedoms...There are many who are underpaid and overpriced..All over the world..Willing that they can find work.

I would love to live off the land,in one of these tree-fort gazebos