The U.S. Energy Information Administration (EIA) said this morning that U.S. crude oil production topped 7 million barrels a day in the final two months of 2012. That is the highest volume production since 1992 and is being driven by production in the Bakken shale play in North Dakota and onshore oil plays like the Eagle Ford and Permian Basin in Texas.
That is all well and good, but crude oil is not the reason gasoline pump prices are high. Pump prices are high because there is not enough gasoline, particularly in the Northeast section of the country.
The U.S. imported 1.98 million barrels of finished motor gasoline in December, according to the EIA. Almost all of that — 1.44 million barrels — were directed at the Northeast, or as the EIA refers to it, PADD 1 (Petroleum Administration Defense District). That gasoline is mostly refined from Brent crude in…
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