John Hofmeister went on CNBC on Thursday to talk about the current and future price of oil, and he gave viewers more to think about when he elevated the discussion to include the need for alternatives to meet the world’s growing appetite for transportation fuel.
Hofmeister, the former president of Shell Oil and now a member of Fuel Freedom’s Board of Advisors and Directors, spoke as Brent crude was heading toward a close of $48.74, a 71 percent increase from Jan. 18, when it was $28.55.
CNBC host Brian Sullivan asked whether oil would hit $60 by year’s end. Hofmeister replied:
Certainly. I’m actually more bullish than that, but we’ll see. … Now, if you ask the question 5 to 10 years out, we cannot ever produce enough oil, in my opinion, to satisfy global demand 5 or 10 years out. We have to start using natural gas and more biofuels as a source of transportation fuel.
We can make five different transportation fuels from natural gas, from ethanol to methanol to CNG (compressed natural gas); liquefied natural gas; and gas to liquids, which is a diesel. And what we need are some regulatory changes … we need some entrepreneurs and innovators to come into this and start to push alcohol fuels, in addition to oil products fuels. That’s the only way we’re going to achieve long-term equilibrium …
Watch the whole interview.