Drill, Drill, Drill Lowers Gas Prices In Midwest
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In a recent speech, Obama mocked the "drill, drill, drill" strategy, and called it a "bumper sticker," not a real solution to high prices at the pump. Well, the drill, drill, drill strategy does seem to be working to keep gasoline prices lower in certain states like Minnesota and Colorado than in the rest of the country, due in part to less expensive Canada's Alberta oil sands and crude oil from North Dakota. Here are some recent news reports about this:
2. Colorado gas prices 50 cents cheaper than national average
: "Some of the cheapest gas prices in the country routinely are in the Rocky Mountain states. The reason is cheaper crude prices and refinery costs, according to the agency. Refineries get most of their oil from within the Rocky Mountain states or nearby parts of the Midwest or from Canada."
3. Why Is Gas Cheaper In Midwest? Thank Canada: "When you think "foreign oil," the Middle East probably comes to mind. But Canada actually is the No. 1 supplier of foreign oil to the United States. The amount of oil Canada delivers to this country is growing, thanks in large part to the Alberta oil sands."
"Consumers in Colorado, consumers in Illinois, consumers in Minnesota should all be sending thank you notes to the province of Alberta," says oil market analyst Philip Verleger, who lives in Colorado. "We're benefiting from the increased supply in Alberta because it can't make its way to the Gulf Coast."
Bottom Line: Without all of the increased supply of North Dakota crude oil and Alberta tar sands oil, it's likely that gasoline prices would be much higher in the Midwest and Rocky Mountain states.