ASP’s Andrew Holland and Nick Cunningham were quoted in Politico’s Morning Energy on February 11 talking about ASP’s new report, “Cause and Effect: U.S. Gasoline Prices.” The report argues that the U.S. cannot drill its way to low gasoline prices since U.S. gas prices are dependent on the world price for crude oil. From Politico:
WHO HAS THE POWER ON OIL, GASOLINE PRICES? Increasing U.S. production doesn’t do much to reduce the price of oil or gasoline because on a global scale, the increase is relatively tiny, and new oil production brought online in recent years tends to be more expensive to extract, such as with deep offshore drilling, Andrew Holland and Nick Cunningham of the American Security Project write in a paper out today. So who does have the power to affect world oil prices? Iran, the pair write — not through its own oil production but because Iran could close the Strait of Hormuz to the 15 million barrels that travel through it each day (about 17 percent of world supplies).
To read the full article, click here.
To read the full report ”Cause and Effect: U.S. Gasoline Prices,” click here.