As U.S. supply accelerates, gas prices stuck in neutral

[Geee]

Washington Times:

America is in the midst of an energy boom has left the country floating in crude oil and natural gas — but consumers are seeing only modest returns at the gas pump, where analysts said the chief benefit has been stability, not cost-cutting.

 

The conundrum has consumers scratching their heads and lawmakers on Capitol Hill promising investigations, saying it stands conventional economic wisdom on its head: More supply should mean lower prices.

 

Crude oil and natural gas supplies have risen dramatically in the past three years. In October, the U.S. produced more crude oil than it imported — a milestone last reached in 1995. Yet averaged nationwide, prices dropped 11 cents last year. GasBuddy, which tracks pump prices, projects a drop of only another dime this year, to average $3.39 a gallon.

 

“We’re not seeing that it’s having a tremendous impact on the retail price of gas at the pump, but we do see that consumers are saving. We saved a little bit of money in 2013, and we expect consumers will save a little more this year,” said Gregg Laskoski, senior petroleum analyst at GasBuddy.