Wednesday, April 25, 2012

U.S. oil production is up, so why are gas prices so high?

Given America's new oil rush, it would seem the best of times for gas prices. But with $4-per-gallon sticker shock, it might feel like the worst of times. How can this be?

The question is all the more perplexing, because the United States is not only producing more crude oil but also using less of it. As a result, net oil imports have dropped a third since 2005. With such good fortune, America's soaring pump prices seem to defy the laws of supply and demand — except for one fact: It's increasingly not just about us.

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