this post was submitted on 19 Nov 2024
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Economics

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Why Trump’s ‘drill, baby, drill’ pledge may not actually lower US gas prices (www.theguardian.com)
submitted 6 hours ago by MicroWave@lemmy.world to c/economics@lemmy.world
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Summary

Despite Trump’s pledge to lower gas prices by increasing oil production, energy companies prioritize profitability over pumping more oil.

US oil and gas companies have excess capacity and are focused on managing resources efficiently.

Even if oil producers increase production, refiners have limited capacity to process shale oil into gasoline, potentially increasing prices.

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[–] kikutwo@lemmy.world 5 points 6 hours ago

The main reason is that they aren't high.