US oil production breaks records; expert explains why gas prices remain high

BISMARCK, N.D. (KFYR) - The United States was a major record-breaker last year when it came to oil production. International Energy Statistics reports the U.S. produced more crude oil than any other nation at any point in history at about 12.9 million barrels a day. Despite the high inventory, gas prices are still creeping higher.

Commodity trading expert Eugene Graner with Heartland Investor Services Inc. said that even though we’re a world leader in oil production, gas prices are still based on the world oil market. Graner said that’s because we don’t keep all the oil we produce.

“We still import, but we export oil as well. That’s because oil, similar to wheat and corn, is fungible. So, since we can export oil for logistic reasons, it makes sense to export one coast and import into another coast— we rise and fall with world oil prices,” said Graner.

Graner said the cost of gas on a national level can still be impacted by conflict and oil prices and production overseas.

He said the regional cost of gas can be impacted by refinery closures, maintenance or capacity.