7 On Your Side
America produces more oil than in 2 decades
SAN FRANCISCO (KGO) -- America is pumping out more oil than it has in two decades.
So, why does a gallon of gasoline cost so much? Federal rules say gasoline must have 10 percent ethanol. So ethanol producers blame oil companies, oil companies blame ethanol producers.
But many economists are saying the real explanation is exports. U.S. oil companies can often make more money shipping fuel out of the country, so they do. It's supply and demand. With less supply here, prices go up.
It is all completely legal, even if the oil comes from federal land leases.
Get used to it; the economists say there is no letup in sight.
gas prices, oil, economy, 7 on your side, michael finney
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