API’s chief economist John Felmy has said that more crude oil production and more efficient consumption of oil products are keys to addressing higher US gasoline prices.
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‘We have very large oil resources here in the US and technologies that are making more of them accessible and economic to produce. Given reasonable regulations, expanded access to resources on federal lands and waters, and fair tax policy, we can bring several million more barrels per day of crude oil to market. This could help reduce crude oil price volatility on global markets and put downward pressure on crude prices. It also could create more than one million new jobs, reduce our dependence on foreign energy, and increase revenue to the government by billions of dollars a year.
‘More efficient use of oil, especially as new, more aggressive vehicle fuel efficiency standards are phased in, could help moderate prices. Consumers also can help trim demand by consolidating trips, planning errands better and carpooling when possible, and by ensuring vehicle engines are tuned and tires are properly inflated. Finally motorists can conserve by keeping speeds down. Lower speeds increase mileage and enhance safety.
‘The key to addressing gasoline prices is to increase supply and reduce demand. The US should do more of both.’