While energy companies have put the brakes on capital spending thanks to low crude prices, in a few short years there won't even be enough oil to meet demand, former Shell Oil CEO John Hofmeister predicted Thursday.
"We cannot ever produce enough oil, in my opinion, to satisfy global demand five or 10 years out. We have to start using natural gas and more biofuels as a source of transportation fuel," he said in an interview with CNBC's "Power Lunch."
On Thursday, the American Petroleum Institute reported petroleum deliveries rose by 3.6 percent from a year ago to 19.7 million barrels a day, making it the highest April deliveries in eight years.
Oil prices have been slowly climbing back up since they hit 12-year lows in the first quarter, thanks to falling U.S. production and unexpected supply constraints hitting Libya and the Americas.
Those oil lows came about because of oversupply issues and led big names to slash capital spending by tens of billions of dollars. Exxon Mobile, for example, said in March it would cut capex to $23 billion, down 25 percent from the previous year.