Energy...

Green Car Report May 26, 2008

Analysts Predict $12-$15 a Gallon Gas Prices

UK Is Already Paying Nearly $9 per Gallon

The sky is falling, but not gas prices. As a matter of fact, things are only going to get worse. Much worse. Worse than the $4 a gallon national average we're likely to see in the next few weeks. Worse than the $8.55 they're paying the U.K. per gallon this weekend (that's $2.26 per litre). At least one analyst is predicting $12-$15 a gallon gas in the next decade.

Robert Hirsch, a "senior energy advisor," gave this dire warning on CNBC last week. He based his prediction on an interview given by Charles T. Maxwell in February. Maxwell, who is apparently known as "The Dean of Oil Analysts," said the crisis will start sometime between 2010 and 2015 and will last for at least ten years.

No less an authority (if by "authority" you mean "TV personality") than Jim Cramer said on NBC's "Today" show that Hirsch is an alarmist. Cramer predicts that oil will hit $150 a barrell by the end of the summer, which will translate to $5 a gallon.

Cramer says double-digit gas prices aren't going to happen, since demand will drop off at $6 or $7 a gallon. Demand seems to be dropping already, with public transportation ridership up, scooter sales up, and SUVs and full-sized trucks dropping out of the market. From the planet's point of view, maybe that's not so doomy or gloomy after all.

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