With So Much Oil, Why Are Prices Still High?
“With oil and natural gas production soaring in the US, consumers might expect lower prices at the pump and on their electric bills,” the Christian Science Monitor reports. “But that’s not happening. The summer driving season was the fourth most expensive on record, and residential electricity costs ballooned in the first half of 2014.”
“Meanwhile, US oil and natural gas production surges, fueled by innovative drilling in states like Texas, North Dakota, and Pennsylvania. Today, the US is the world’s largest producer of natural gas, and oil production rivals energy giants like Russia and Saudi Arabia.”
“So why are American consumers paying more, even as the supply of American fuel expands? Unquenchable global demand is the problem, analysts say, along with inclement weather and infrastructure bottlenecks that have prevented burgeoning energy stores from reaching consumers.”