I interrupt my blogging hiatus to post some stuff on energy.

28 Dec 2010 11:47 pm
Posted by: Donna

Hey kids! I promise I’ll be back and posting regularly after the New Year. Sometimes a Diva needs a mental health break, you know? Plus, I’m bracing myself for a new Arizona lege featuring such intellectual luminaries as Teri Proud. Not really looking forward to Congressman Ben Quayle and Senator Rand Paul either.

On that happy note, on to this Tuesday evening’s post on energy. I heard on the radio that some oil industry mucky-muck was predicting $5 a gallon gas as soon as 2012. That piqued my interest so I got to googling when I got home.

Per NPR:

Predicting that gasoline will hit $5 a gallon by some time in 2012 has put former Shell Oil president John Hofmeister on the news media’s radar today.

Why’s he think the price will go there?

Oh my! Don’t keep us in suspense, Mr. Hofmeister!

“The issues that gave rise to high priced gasoline in 2007 and 2008 are repeating themselves, except the world demands even more oil in the next several years than before,” Hofmeister tells CNN (he’s due on tonight’s edition of Parker Spitzer). “Asian growth is continuing. … U.S. economic recovery has brought demand back to where it was before. Economic growth means even more demand. But the U.S. Government is prohibiting expansion of U.S. domestic crude oil production which puts upward pressure on global crude oil prices.”

Oooooh! The dastardly U.S. Government is ruining ,everything again! Putting the big old bureaucratic brakes on the march of progress, as usual! They’re the reason we can’t have nice things!

Only thing is that a couple of things Hofmeister says here set off my red flags. First, the high gas prices of 2007 and 2008 were due as much to unregulated commodity speculation as with increased worldwide demand for petroleum. Second, even the most aggressive expansion of domestic oil production would have a minor impact on global prices, at best.

We learn from the NPR report that Hofmeister is now the CEO of – wait for it – an astroturf outfit called Citizens for Affordable Energy. Didn’t see that coming, did you?

3 Comments

  1. Comment by dude on December 29, 2010 8:13 am

    fucking seriously. they had an oilman on to talk about energy.

    they’d never put an animal testing clinic bomber from PETA on to talk about the new food safety regulation, but they don’t hesitate to put someone whose hands are still covered in light sweet crude on to talk about energy.

  2. Comment by Cheri on January 4, 2011 5:44 am

    Yeah…I saw that coming. In fact, the surprise would have been if they HADN’T! Corporations rule! People be damned.

  3. Comment by JustJoeP on January 4, 2011 7:58 am

    On NPR they mentioned yesterday that the French strikes which shut down refinery production for more than a week there drove the market to the US for refined fossil fuels. Combined with Americans driving less, it made Last year the first time since the 1960s, that he US became a Net Exporter of gasoline.

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