Shell: Oil companies not responsible for rising prices

The oil industry should not be held responsible the rising price of oil, according to Shell Oil president John Hofmeister.

The oil industry should not be held responsible the rising price of oil, according to Shell Oil president John Hofmeister.

He also stated that the US needs to produce more domestic oil despite the fact that biofuels and other alternative sources of energy are rapidly developing.

Speaking at an alternative fuels conference in Sacramento, Mr Hofmeister said that "we see no alternative" in the short term.

He pointed out that if companies like Shell are not allowed to produce domestic oil, the industry will be forced to import oil into the US which will eventually push up prices.

Critics have blamed the oil companies for record profits, however, but Hofmeister said that they should not be held responsible for prices which reached an all-time high national average of $3.37 (£1.7) a gallon this week.

Mr Hofmeister maintained that America must expand its alternative oil resources while simultaneously extracting more oil.