Gas prices

All Eyes on OPEC

Recently, EIA and other oil market forecasters have been paying close attention to how the Organization of the Petroleum Exporting Countries (OPEC) is adjusting to lower global oil demand and weaker oil prices brought on by the global economic recession. Crude oil prices are now almost $100 per barrel off their peak level last year, and most forecasters, including EIA, are projecting 2009 global oil demand to be over 1 million barrels per day (bbl/d) lower than in 2008.    » read more »

March 18, 2009 -- The production of non-crude liquids has traditionally been under-appreciated and sometimes even ignored, much like the treatment accorded to a utility infielder who sits on the bench as the superstar who plays third base and bats cleanup receives all of the attention. However, when that third baseman suffers a season-ending injury, the forgotten utility infielder immediately comes to the forefront. With crude oil (the superstar of the liquid fuels market) ailing, non-crude oil liquids have emerged into the limelight as an important component of world oil supply growth.    » read more »

March 11, 2009 -- A lot has changed over the last several months, here in Washington with the new Administration, and across the U.S. and the rest of the world as economic conditions continue to deteriorate. It has been the latter change that has impacted EIA’s short-term global oil market forecast. In the latest Short-Term Energy Outlook (STEO), just released yesterday, EIA is projecting 2009 global oil demand to be 3 million barrels per day lower than we projected as recently as six months ago, in our September 2008 STEO. Why have we changed our view of 2009 so dramatically in such a short time?    » read more »

The Bakken Formation Helps Increase U.S. Proved Reserves of Oil

This Week In Petroleum for January 28, 2009 noted that North Dakota had the Nation’s third largest increase in proved reserves of crude oil in 2007, 70 million barrels (17 percent). Most of this increase came from development of the Bakken Formation. What is the Bakken Formation and why does it matter?

What is the Bakken Formation?    » read more »

Are Gasoline and Crude Oil Price Patterns Actually Diverging?

Recently, we at EIA have received many inquiries about why gasoline retail prices have been rising compared to the New York Mercantile Exchange’s (NYMEX’s) reported price of crude oil. The national media have also run several prominent stories on this divergence in prices. In particular, EIA’s reported average retail price of regular gasoline in the United States rose from $1.61 to $1.96 between December 29th and February 16th. During the same period, NYMEX’s most reported price for crude oil was volatile, but had no clear upward trend. So what’s going on?    » read more »

Groundhog Economics: Will Punxsutawney Phil Cost You Money?

We celebrate Groundhog Day in the U.S. (and Canada) on February 2nd. Tradition holds that if Punxsutawney Phil, the most famous groundhog, sees his shadow that day when peeking out of his burrow, there will be six more weeks of winter weather. Conversely, a cloudy day portends warmer weather for the rest of winter. Late winter weather, particularly in the Northeast (where about 80 percent of U.S. heating oil is consumed), can affect heating oil consumption and, consequently, expenditures for the residential customer.    » read more »

The Dance Between Crude Oil and Retail Gasoline Prices

February 4, 2009 -- The relationship between crude oil and retail gasoline prices is similar to dancers on the reality show “So You Think You Can Dance.” On that show, the contestants dance with a partner, but also do solo numbers. So, too, do crude oil and retail gasoline prices seemingly move in tandem at times, but at other times seem to be disconnected. What is the relationship between crude oil prices and retail gasoline prices? It’s more complicated than may appear on the surface.    » read more »

CHEYENNE, Wyo. - The impact of low energy prices on the state budget could be serious this coming year, Wyoming Gov. Dave Freudenthal said in a news conference on Feb. 4, 2009.

Natural gas prices have traditionally been higher this time of year than in other seasons, and yet prices have remained unusually low this winter, he said.

“I think it’s a serious problem and I’ve spoken to a number of the legislators about it." he said. "I don’t make light of people’s commitments on these other issues, but we’re learning that we’re not immune to what’s going on in the (national) economy and we need to be mindful of that.”

Both the Senate and the House will debate the budget bill next week.    » read more »

Speculators Are Responsible for Market Turmoil, Public Citizen Energy Director Tells House Committee

Feb. 3, 2009 -- WASHINGTON, D.C. - Congress must reregulate the energy markets if it wants to prevent speculators from causing massive swings in oil, gasoline, natural gas, electricity and other energy prices, which hit $147 a barrel in July before dropping 75 percent in just five months, Tyson Slocum, director of Public Citizen’s Energy Program, told a U.S. House committee today.    » read more »

New Survey Shows Intention to Purchase Cars with Much Higher Fuel Economy

February 3, 2009 -- Washington, D.C. -- According to the latest Consumer Federation of America (CFA) energy survey, despite the decline of pump prices from $3.50 in April 2008 to $1.90 today, a large majority of Americans remain concerned, most greatly so, about gas prices (76%) and dependence on Middle-Eastern oil (76%). Moreover, in their next car purchase, they intend to buy a vehicle with fuel economy averaging five miles per gallon greater than the mileage of their current vehicle.    » read more »

January 28, 2009 -- The rapid fall in crude oil proved reserves that began in 1970 has moderated over the past decade, and crude oil proved reserves actually rose by 345 million barrels (2 percent) in 2007, the latest year for which information is available. Proved reserves are the estimated quantity of crude oil that can be produced with reasonable certainty from known reservoirs under current economic and operating conditions.    » read more »

Refinery Yields

“Refinery yield” is the measure analysts use to assess how the breakdown of petroleum products coming from crude or unfinished oils varies over time. Refiners can adjust product yields in response to changing product prices and other market conditions. Yield changes are made by varying how refinery process units are used and the type of crude oil that is used. EIA receives many questions about yields, including how much they may vary, why they add up to greater than 100 percent, and how to estimate yields from weekly data, which does not contain adequate detail to determine refinery yields.    » read more »

Declines in U.S. Petroleum Consumption Expected to Continue

If you feel like you’ve been economizing by driving less and adjusting your thermostat more, you’re not alone. Total U.S. petroleum consumption reported in today’s Weekly Petroleum Status Report (WPSR) is once again lower than the same week last year.

Average monthly total petroleum consumption has now declined for 12 consecutive months when compared with the same month the year before. Within the last 25 years, we’ve identified 6 other 12-month periods during which there was a sustained drop in total petroleum consumption from the previous year.    » read more »

Aug 13, 2008 -- SALT LAKE CITY, Utah - Utah Governor Jon Huntsman announced today that the Department of Agriculture and Food and the Department of Commerce are actively monitoring and analyzing Utah gas prices. In the most recent AAA gas report, the State's average price for unleaded gasoline was third highest in the nation.

"Gas prices are hitting everyone hard. As the rest of the country is seeing some relief from exorbitant gas prices, gas retailers in Utah have not shown Utahns a commensurate decrease at the pumps here at home," said Governor Huntsman. "We are asking these state agencies to monitor the situation within their enforcement powers to make sure Utahns are not being taken advantage of."    » read more »

August 4, 2008 -- This week, as John McCain continues on the Low Road Express, launching false attacks and airing desperate ads, donations from oil and gas companies are fueling his campaign - and driving his policies.    » read more »