CNBC: John Hofmeister, Former CEO of Shell --> $5 Gasoline

John Hofmeister is a regular on CNBC and his comments are always right on target. He is saying everything that has been said on this blog, such as:

• The administration is so anti-oil that leads to the predicament that we are in.
• Gulf of Mexico was closed for much of last year, and will be closed to drilling most of this year.
• If administration was serious about a) jobs; and, b) energy independence, the government would set a mandate for US to produce 10 million bbls of oil per day. Right now the US is down to 7 million barrels and heading to 6 million barrels.

But whether one agrees with him or not, finally we get an answer to the Cushing supply glut:

The "glut" at Cushing is 37 million barrels which represents two days of consumption for the US. The reason for this glut is twofold: a) European oil is being sent to the East Coast because demand for oil in Europe has been decreasing (this, of course, will change with events in Libya); and, b) lower refinery demand in the south during the winter months.

By the way, once the US reaches 6 million bbls of oil production per day and North Dakota produces 1 million bopd, ND will account for almost 20 percent of American-produced oil (17%). Kind of exciting.

And, another "by-the-way," I see that oil futures (WTI) is up another $2.80, just pennies shy of $101.

And one of the "talking heads" hit the nail on the head. See connecting the dots.