March 10, 2022

Why record-high gas prices won't be solved by drilling more oil in the US

Featuring Rachel Ziemba

Source: CNN

Journalist Ella Nilsen

There are many reasons for this, but the biggest one is that oil is truly a global commodity, experts told CNN. The global price of oil determines gas prices in the US, and it's impossible to divorce that price from the shifting global dynamics.

"Energy markets are global, the oil market even more so than natural gas," said energy analyst Rachel Ziemba. "It's not really realistic, in my mind, to close [the US] off and be energy independent and say, 'Sorry, guys, we're independent and we don't care about you.' "

...

"I think what they're trying to do now is to recognize that there is a near-term goal of reducing global reliance on Russian energy," Ziemba said. "That both means finding additional supplies of oil and gas from other jurisdictions, including at home, just as it means conservation and consumption changes and additional deployment of cleaner energy."

Read the full story and more from CNN.

Authors

  • Rachel Ziemba

    Adjunct Senior Fellow, Energy, Economics, & Security Program

    Rachel Ziemba is an Adjunct Senior Fellow at the Center for a New American Security (CNAS). Her research focuses on the interlinkages between economics, finance and security i...