I read a good story in the Dallas newspaper that explained some of the price differential across the country, and some of it has to do with transporting oil to refineries, by rail, by sea or by pipeline, and some of it has to do with the world market.
Markets on the east and west coast find it cheaper to buy their oil on the world market, then refine it; buying oil from the Midwest and Texas is cost prohibitive. Brent crude costs more than West Texas crude, and that is reflected in the price of gas, but it would be even more expensive if the coasts had to send in "American" oil by rail.
The Midwest and Texas have a pipeline system set up to (relatively efficiently) get oil that is being taken from the ground in those areas to local refineries, then the product to local markets.
The wild card in all of this is world demand; fuel that is refined in Texas, for instance, is finding a much higher price overseas, so that's putting some upward pressure on local prices.
In short, the refineries in Texas, North Dakota, Louisiana are buying low, and selling high.
Cheap, "homegrown" oil is not equating to cheap gas for those areas.
quote:Both true. And I agree, Keystone is an excellent idea. It will be extremely frustrating if this thing is blocked by politics.
I don't think the keystone pipeline will necessarily lead to lower gas prices
But that doesn't mean that it's not a good idea
Obama says that high gas prices show that the economy is doing well
Are Obama policies improving the economy or worsting the economy? I'm pretty sure most of us know the answer to this question.
I want to know what happened last November when gas prices were supposed to be over $5 according to conservatives last summer.
Obama secured a promise from Saudi Arabia to increase production up too 30 million barrels; markets reacted crude decreased Saudis 4Q 2012 decrease production.
OPEC member countries, particularly Saudi Arabia, cut production heavily in fourth-quarter 2012, which contributed to an increase in crude oil prices at the start of 2013