Robert Hirsch: $12 Dollar A Gallon Gas is "inevitable"

[ballsalicious]

http://www.businessandmedia.org/articles/2008/20080521145247.aspx

'Squawk Box' Guest Warns of $12-15-a-Gallon Gas
Robert Hirsch, an energy advisor, says CNBC morning show prediction was a citation of the 'Dean of Oil Analysts.'

By Jeff Poor
Business & Media Institute
5/21/2008 3:38:13 PM


It may be the mother of all doom and gloom gas price predictions: $12 for a gallon of gas is “inevitable.”



Robert Hirsch, Management Information Services Senior Energy Advisor, gave a dire warning about the potential future of gas prices on CNBC’s May 20 “Squawk Box”. He told host Becky Quick there was no single thing that would solve the problem, due to the enormity of the problem.



“he prices that we’re paying at the pump today are, I think, going to be ‘the good old days,’ because others who watch this very closely forecast that we’re going to be hitting $12 and $15 per gallon,” Hirsch said. “And then, after that, when oil – world oil production goes into decline, we’re going to talk about rationing. In other words, not only are we going to be paying high prices and have considerable economic problems, but in addition to that, we’re not going to be able to get the fuel when we want it.”



Hirsch told the Business & Media Institute the $12-$15 a gallon wasn’t his prediction, but that he was citing Charles T. Maxwell, described as the “Dean of Oil Analysts” and the senior energy analyst at Weeden & Co. Still, Hirsch admitted the high price was inevitable in his view.

http://www.wtrg.com/prices.htm

[tridim]

1. There you go speculators, speculate away.

I can't tell if this is a real warning or a ploy to raise prices further and faster so big oil can steal more of our money.

[depakid]

4. Dr. Hirsch is the real deal

and he's telling you this so you can be prepared.

[ProfessorGAC]

6. And Yet, He's Quoting Someone Else

Is that guy the "real deal" too? There's nothing to prepare in this scenario. If oil hits $300 a barrel, there will be a world war at a scale for which no preparation will be sufficient.
The Professor

[depakid]

7. His 2005 report to the DOE was all about preparing for this inevitability

PEAKING OF WORLD OIL PRODUCTION: IMPACTS, MITIGATION, & RISK MANAGEMENT

http://www.netl.doe.gov/publications/others/pdf/Oil_Peaking_NETL.pdf

Unfortunately, when you read about the lead times for "orderly" transition to less petroleum dependent technologies, you will find that the hour has long since passed.

You can thank Ronald Reagan and Sheikh Yamani for that....

[krabigirl]

12. Yep, and then they'll drive the prices even higher.

[louis-t]

2. Already conditioning Americans for $12 a gal.

Oil analyst, probably heavily invested in oil futures, predicts massive profits for himself in self-fulfilling prophecy of 'inevitability'. Later, off camera, he snickered "an' there's not thing one youse can do about it."

[soothsayer]

14. yup! the fix is in.

[kentuck]

3. Then 25% of the nation will be unemplyed..

Because they will not be able to afford to drive to work...

[gatorboy]

5. Yeah but if all these folks predict higher prices, doesn't it almost automatically make it so?

Doesn't this artificially drive up the Oil future market trade? It's what happen last month with the "scarce" rice supply, correct?

[newmajority]

8. It's time to start executing these criminal bastards.

And yes, I'm completely serious.

I'm opposed to the death penalty in most criminal cases, because absolute guilt is often in doubt, and indeed innocent people have been killed by the state.

But in this case, there is no doubt that these bastards are guilty. And it's treason. They are willfully destroying the entire economy of this country, and ordinary people are suffering because of it. This cannot be tolerated any longer.

[Postman]

9. When people will no longer be able to afford to go to work....

it will be like what happened in Iraq when Paul Bremer disbanded the Iraqi Army and told all of those people to go home, take your guns with you, and don't come 'round here no more....

Change is coming to this country for better or worse.

[neverforget]

10. Oil fields in Mexico and Russia are in decline and they are MAJOR

producers of oil. Peak oil is not running out of oil, it's running out of cheap and easy to get plentiful fields.

Here's a link to the Russian oil situation:
http://www.bloomberg.com/apps/news?pid=20601072&sid=arXTpOY4omL4&refer=energy

--snip--
Output fell 0.7 percent in January and 0.9 percent in February, to 9.79 million barrels a day, compared with the same months last year, according to Energy Ministry data. Saudi Arabia is the world's biggest producer of crude oil.

Zurich-based Credit Suisse said it now expects output to fall 0.5 percent, after earlier predicting a 0.7 percent rise.

``National production has reached a plateau and onshore production appears to be in decline,'' said Ronald Smith, chief strategist at Alfa Bank, by phone in Moscow today.
--snip--

Here's a link to Mexican oil production:
http://www.iht.com/articles/ap/2008/03/24/business/LA-FIN-Mexico-Oil-Production.php

--snip--
Mexico's oil production fell 6.4 percent in the first two months of the year compared to the same period in 2007, while exports fell by more than twice that much, the state-owned oil company reported Monday.

Daily crude output fell to an average of 2.94 million barrels per day in January and February, Petroleos Mexicanos, or Pemex, said. Exports were down 14.6 percent. Natural gas production was up 13.2 percent, a record for the company.

The Mexican government has warned that production is steadily declining at the country's largest oil field, Cantarell, located just off the Gulf coast. Pemex leaders and oil experts agree that the future of oil exploration lies in the deep waters of the
--snip--

As much as I would like to blame big oil for their greed, this was inevitable. We use oil like there is no tomorrow and act like it can be replenished. Oil is a finite resource! We are in for a difficult time ahead because the media is certainly not talking about this and our government certainly isn't doing anything to help.

[SammyWinstonJack]

11. That price will shut this Country down.

[aint_no_life_nowhere]

13. Will wages/salaries keep up with this cost of living increase?

I won't be holding my breath.