The recent leg lower in crude prices is no surprise, and market watchers should expect the oil rout to get worse before it gets better, former Royal Dutch Shell President John Hofmeister said Tuesday.
"I think the first quarter of next year is going to be probably the roughest quarter that the oil and gas industry has seen really in a long time," he told CNBC's "Squawk on the Street."
Globally traded Brent hit an 11-year low and U.S. crude dipped below $34 in Monday's session, extending a price slide following OPEC's Dec. 4 meeting, during which the producer group declined to enforce production cuts.
The oil market is oversupplied by about 1.5 million barrels per day.
The current price environment will continue for some time so long as top oil exporter Saudi Arabia continues to tap its extensive reserves and borrow money to fund its policy of keeping oil production roughly steady, Hofmeister said.