From CBS News:
“John Hofmeister, an ex-president of Shell Oil, says we’re looking at $5 a gallon gas in 2012.”
From my observations, industry insiders tend to low-ball their price predictions. On the other hand, he’s calling for more drilling, so he may be inflating the number in order to scare people into supporting it.
If the latter is true, he’s being very deceitful. Our capacity to increase oil production is rather tiny compared to the amount of global production. And since oil is traded and priced at the global level, any increase in U.S. production would have no noticeable effect on the global price. The only ones to benefit from increased drilling in the U.S. would be the oil companies.
For solid information on oil supply, check out The Oil Drum.