Former Shell Oil President John Hofmeister, predicted more volatility and higher prices in the oil market during an interview on the FOX Business Network.
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Even though he sees low gas prices, which are hovering around $2 per gallon nationally, as a “good deal for consumers right now,” he cautioned that the oil and gas industry is headed for shortages.
“We are not investing to replace existing production and we are postponing future investments that will create future increased production,” he said.
He said continuing on this track will lead to higher gas and oil prices.
“We restricted the production of oil by not allowing releasing to occur… keeping most of the outer-continental shelf off limits and if we continue to restrict access to oil and gas then we will get back in a position of grossly unfair and very high prices to consumers probably by 2018,” he said.
Meanwhile, according to the Department of Labor, the U.S. economy added 255,000 new jobs last month.
While these numbers were far better than expected, Hofmeister pointed out significant jobs losses in the energy sector.
“Here is an unreported fact. Nearly 400,000 Americans have lost their jobs in the last 18 months and you don’t hear a word about it from official Washington… Not a word from our national leaders of either party on the trauma that’s been inflicted on this industry because of failed energy policies in this country,” he said.