Thread by @TXforNatGas

If you've gone to the gas station lately, you may have winced at the prices at the pump.

So... what is happening? No, #oilandgas companies are not price gouging. Here's a brief breakdown of what's really going on.

The prices we pay as consumers are a direct result of the global market supply.

We’re currently going through significant supply disruptions, coupled with increased demand as everyday activities return to normal as we emerge from the COVID-19 pandemic.

Russia’s invasion of Ukraine has significantly impacted global oil supply. Russia was previously a large operator in the global energy market and has been the largest supplier of oil to Europe over the past several years.

bit.ly/3EyI604

In response to Russia’s aggression, the U.S. sanctioned Russian oil imports and other petroleum products. This has impacted the energy market by limiting available global energy supply.

The EU is also currently considering its own sanctions on Moscow – which will likely include a ban on Russian oil. cnb.cx/3vEIZ4x

With high energy demand, and a strained supply, comes higher global oil prices…. Resulting in the products derived from crude oil – like the gasoline you use at the pump – rising in price as well.

Some anti-fossil fuel politicians are using high prices to accuse U.S. oil and gas producers of 'price gouging' - or taking advantage of consumers.

But let's be clear: U.S. oil and gas companies are price takers, not price makers.

Over the past 30 years, there's been more than 100 investigations & lawsuits brought by consumers, the FTC and attorneys general alleging conspiracies in the gasoline market.

‘They all flopped,’ said Phil Verleger, an economist and a senior fellow at the Niskanen Institute.

The bottom line: if we want lower oil & gas prices, we need to bolster our supply. In other words, we need to embrace increased domestic oil production.

Read more on our blog here: bit.ly/38bfTjO