Part two of a two-part series on the Keystone XL pipeline
Gas isn't like a rare bottle of wine that fetches a high price just because it's rare. But at the same time, no one can agree what drives gas prices. Demand for gasoline in the U.S. is at its lowest point in more than a decade; domestic oil production is at an eight-year high.
In western Colorado, there’s a new twist in the battle over plans to open up a scenic area near Carbondale to oil and gas drilling as a local conservation group has now offered to pay several companies not to develop leases they hold in the area.
Drivers are reaching deeper into their wallets to pay for gas and some parts of the country are paying more than others. AAA's Daily Fuel Gauge Report finds the national average cost of a gallon of unleaded gas today is $3.57. But that same gallon of gas can cost as little as $3.04 in Wyoming or a full dollar more in California, at $4.02.
The dispute over Iran's nuclear program has again rocked oil markets. And Iran is threatening to close the Strait of Hormuz, which is just 34 miles wide yet serves as the passageway for 20 percent of the world's oil.
This is not a new drama. In fact, it was a recurring issue in the 1980s. Still, there's been relatively little activity among Gulf oil producers to find alternative routes to get their oil to market.
Oil and gas companies doing business here in the West have sparred quite a bit with the Obama Administration since it took office in 2009… the now tabled “Wild Lands” policy is just one of the heated issues that comes to mind.