Thursday, March 21, 2013
Remember when drill baby drill was going to bring gas prices down?
Driil baby, drill! It was so simple that even Sarah Plain and Louie Gohmert could say it without screwing up. But someone had trouble with the simple statement.
The U.S. is increasing its oil production faster than ever, and American drivers are guzzling less gas. But you'd never know it from the price at the pump.See, there is the problem, experts are involved. If the world would just let the prices be set by a bunch of costumed ninnyhammer Teabaggers, everything would be perfect. Until then Big Oil will continue to sell it anywhere they can get the highest price and profit margins.
The national average price of gasoline is $3.69 per gallon and forecast to creep higher, possibly approaching $4 by May.
"I just don't get it," says Steve Laffoon, a part-time mental health worker, who recently paid $3.59 per gallon to fill up in St. Louis.
U.S. oil output rose 14 percent to 6.5 million barrels per day last year — a record increase. By 2020, the nation is forecast to overtake Saudi Arabia as the world's largest crude oil producer. At the same time, U.S. gasoline demand has fallen to 8.7 million barrels a day, its lowest level since 2001, as people switch to more fuel-efficient cars.
So is the high price of gasoline a signal that markets aren't working properly?
Not at all, experts say. The laws of supply and demand are working, just not in the way U.S. drivers want them to.
Subscribe to Posts [Atom]
Post a Comment