This past Saturday, former IPAA Chairman and President of Swift Energy Bruce Vincent appeared on ABC 13 in Houston to discuss the complex issues behind the rising price of gasoline – and what kind of energy policy can help alleviate the pain at the pump.
The interviewer began with this straightforward question: “There are a lot of misconceptions about what does and does not influence the price of gas. What is the number one thing that most Americans think that’s not actually true?”
Bruce answered promptly,“That the oil companies control the price of gasoline. The fact is about 70 percent of the gasoline at the pump is actually the price of crude oil which is really determined on the global market by supply and demand fundamentals primarily along with global interruptions and hotspots throughout the world.”
As Bruce noted, certainly the people who grow oranges don’t control the price of orange juice.
He also broke down the difference between short term fluctuations in both gasoline and crude oil caused by global disruptions like Iran threatening to close the Strait of Hormuz versus the longer term fluctuations caused by supply and demand issues.
“In this country we can do a lot with an energy strategy that gets the politics out of policy , gets the hyperbole and misrepresentations out of the conversation and deal with a long-term energy policy that advocates for the development of fossil fuels in this country.”
The oil and natural gas industry has been doing everything it can to grow oil production in the U.S. This amazing oil boom has been largely on private and state lands – not on federal lands where the federal government has jurisdiction. “If we had the government opening up federal lands, lowering the regulation burdens that the industry has and actually advocating and supporting the industry, this industry could drive production to even higher levels that would eventually bring lower prices for the American consumer.”
Check out the full interview on IPAA’s YouTube Channel.