As we drill for more oil than ever before in the United States, gas prices are going up.
Yes, it’s that time of year again. The snow is melting, temperatures are rising, families are making summer vacation plans, people are driving more, and (conveniently) gas prices are spiking.
“Hold on a minute,” you might be saying. “We’re in the midst of a domestic oil boom. I thought that was supposed to lower gas prices?”
Despite messages you might hear from Big Oil companies (often delivered through their friends in Washington D.C. and the media), increased domestic drilling will not save you money at the pump.
According to this story from the Wall St. Journal, U.S. gasoline stockpiles are at their lowest for this time of year since 2011, which is driving up prices. Why are gas stockpiles low and prices up if we’re drilling for more oil here at home?
Because oil companies are exporting gas to other countries, creating a shortage in the U.S. and driving up prices again. From the Wall St. Journal story:
…the retail price for a gallon of regular gasoline averaged $3.68 on Monday, up 4.2% from a year ago, according to the EIA. That is the highest price since March 2013. AAA had the average price on Monday at $3.67…Total petroleum exports, mostly gasoline and diesel, averaged about 3.6 million barrels a day last week, according to the EIA, up 25% from the same period last year.
So instead of delivering on the promise of lower gas prices with increased domestic drilling, Big Oil is just exporting more gas and once again inflating gas prices as families prepare to hit the road for a summer getaway.
It would have been nice if the Wall St. Journal provided some information and context in the story about the role homegrown ethanol and biofuels play in cutting prices at the pump. Or how now is not the time to slash the Renewable Fuel Standard and reduce the amount of ethanol blended in American gasoline.
Unfortunately, the Wall St. Journal is notorious for it’s blind hatred of ethanol, and is one of the main publications Big Oil counts on to spread misinformation and parrot talking points about American farmers and biofuels.
If you’re looking to save a few bucks at the pump on your family vacation this summer, fill up with higher blends of ethanol. There is a promotion in West Central Minnesota that prices E85 (a blend of 85 percent ethanol and 15 percent gasoline) at least $1 less than gasoline. Higher blends like E15 and E30 are now available in the Twin Cities.
You can get more details on where to buy higher ethanol blends in Minnesota at the American Lung Association of Minnesota’s Clean Air Choice page.
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