This July 4, the price of gasoline in the US is expected to be at its highest level in six years – at$3.704 per gallon according to the Energy Information Commission.
Separately, this week, the Obama Administration lifted a 40-year-old ban on the exporting of crude oil. Steve Mufson of The Washington Post noted, “The Commerce ruling initially clears the way for as little as 20,000 barrels a day of new condensate exports (minimally processed super-light oil) but that could rise to as much as 200,000 barrels a day, the estimated Gulf coast capacity of stabilization units, according to an analyst report by Citigroup.”
While there is a debate on the left and right as to what this means, one thing is clear – increasing U.S. oil production will not increase your standard of living if you live in the U.S., and will not lower energy costs in nations around the world.
If we have so much oil in the U.S., why hasn’t the price gone down at the pump giving everyone a raise?
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