Shell president John Hofmeister is touring the country as part of a 50-city dog-and-pony show to explain high gas prices and listen to consumer concerns about the oil industry, the environment and just about anything else on the minds of his customers. It's a bold move, considering the public sentiment toward big oil. But I'm personally aware of Shell's efforts to strike a green chord in the hearts and minds of the public. I get calls or emails from Shell representatives every week, offering to supply information. It is a very efficient operation.

In a recent wide-ranging interview with the San Antonio Express News, Hofmeister offered his companies views on a number of topics, including the infrastructure changes needed to accommodate E85.

"Do customers want E85? We don't know the answer to that yet?" said Hofmeister, noting that consumers see the high cost of E85 and are realizing that the fuel economy is less.

Hofmeister said Shell's position on the source of E85 fuel is clear: the expressed preference is cellulosic ethanol but notes there is no large-scale effort from this segment. Hofmeister says he's concerned about food prices going up if corn is used to produce E85.

On another note, Hofmeister said if subsidies weren't available, then ethanol would be far less popular.

[Source: Vicki Vaughan / San Antonio Express News]

It's time to take a serious look at our country's federal gasoline tax. According to the New York Times, it's been set at 18.4 cents per gallon since 1993. This is FAR lower than any other industrialized nation. The article also points out that according to the International Energy Agency, America's overall gas taxes in August averaged just 40 cents per gallon while Britain and Germany were at $4.24 and $3.99, respectively.

Over the past 13 years a lot has changed. Just look at the Consumer Price Index (CPI). It has gone up 59.4 points during that time, meaning what would have been priced at $1.45 in 1993 would cost $2.04 today. Yet, the federal gas tax has remained rock steady. Earlier, Mike pointed out that the U.S. only consists of about 5 percent of the global population and yet consumes 25 percent of its oil, two-thirds of which is used for transportation. What happens when the rest of the world starts asking for its fair share? Peak oil, anyone?

There's more, like right-wing support and a touch of Pigovian economics, after the jump...

The AP reported today that Shell Oil Company president John Hofmeister publicly denounced U.S. leaders for not piecing together a strategy to combat global warming. He believes the debate over the science of climate change is over and says, "It's a waste of time to debate it. Policymakers have a responsibility to address it. The nation needs public policy. We'll adjust."

He projects that conventional oil and gas resources won't sustain the nation's energy needs and that the future will include fuel from oil shale, gasified coal, biofuels, wind, the sun, hydrogen and conservation.

As we all know, the Bush administration and most Republican politicians have resisted mandatory emissions limits curbing greenhouse gases, but the Democrats are going to feel a bit uneasy at Hofmeister's statements, too. He actually went so far as to suggest that the American government act now and use policy to keep gas prices high to force market and behavioral changes facilitating the growth of a "culture of conservation."

Democrat or Republican, I'm not sure how many publicly elected officials would be willing to advocate a reduction or removal of federal subsidies on petroleum or any other type of legislation that would keep gas prices high.

Hofmeister didn't overlook the American public either as he posited the nation as living in a culture of excess in relation to the rest of the world. He said that the U.S. represents 8 percent of the global population using 25 percent of the earth's energy supply which is not a "sustainable formula," noting that the rest of the world wants its "fair share."

There'll be a lot of speculation as to whether this was a genuine call for action, or a carefully crafted marketing ploy. I'm not certain it matters. The president of the 3rd largest oil company in the world just made a firm public statement advocating policy change that would lead to greater investment in the research and development of renewable energy.

Related:

• Massachusetts v. EPA: The Monkey Trial of the century

[Source: Associated Press via MSNBC]