Shell Blames US Government for High Oil Prices

Shell Oil's President, John Hofmeister, says US public policy is preventing more off-shore drilling which in turn is driving high oil prices.

Hofmeister has labelled policies that restrict offshore drilling and exploration as social injustices that only push oil costs up.

"Only 15% of the continental coastline is open to exploration and production of gas and oil. Every effort to expand that is held back by public policy," Hofmeister says.

Oil prices reached their highest level ever on Tuesday as light, sweet crude oil futures for September delivery ended at $78.21 a barrel, up $1.38.

The previous highest closing price of $77.03 was set in July 2006 at the onset of war between Hezbollah and Israel.