Mix of market forces, government policies drive gas prices

Paul Gessing

NMPolitics - When it comes to prices at the pump, there is no conspiracy, but there are a number of complicated factors at play. Gas prices. The mere mention brings to mind conspiracy theories and worries over “big oil” among many Americans. After a lengthy run-up earlier in the spring, prices have declined several weeks in a row, causing the media to focus attention elsewhere, but it is worth discussing factors affecting gas prices, even when they are declining. To that end, I will speak as part of a panel at a luncheon with several national and local experts in Albuquerque on May 30. Despite recent declines, gas prices remain relatively elevated in historical terms. Below, I’ll discuss various players in terms of gas prices and will explain the impact of each in determining the prices we pay at the pump. 
President Obama and congressional Democrats. The Obama Administration has pushed a variety of anti-energy policies since his election. The most prominent and controversial of these was “cap and trade.” Fortunately, “cap and trade” failed, but that does not clear Obama and his allies in Congress who have continued to oppose drilling in the Arctic National Wildlife Refuge and recently killed the Keystone XL pipeline. The Obama Administration has also placed strict limits on offshore drilling. It is true enough, as liberals may respond, that changing these policies tomorrow would not have an immediate impact on oil prices, but having leadership in this country that is pro-energy development would signal to the markets that America is serious about leading on energy. This would put downward pressure on high prices. Read more News New Mexico

Mix of market forces, government policies drive gas prices