Yes, you are right that to fix above error you will need to upgrade google-api-client.
But this change is not enough for Google cloud compute resource to work.
Currently, GCE is broken as there are changes in Google Compute APIs.
In addition to google-api-client and fog-google gems, it needs latest fog version.
We are working on GCE so that it will work in future.
For more details you can go through the post