Americans are benefiting from cheap oil: Energy secretary
Energy Secretary Dan Brouillette discusses the oil market and compares the low oil prices to tax cuts for the American people.
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Even as some U.S. states begin reopening businesses and easing coronavirus restrictions — and residents start to leave their homes — gas prices might not catch up to demand right away.
Energy Secretary Dan Brouillette spoke to FOX Business Network Friday about the oil industry, which has taken a hit as people travel less and global storage space nears capacity.
“Consumers, as these economies open up, will enjoy some really, really cheap gasoline prices, which is going to be — as the president pointed out — the same effect as a tax cut for the American economy,” he told host Liz Claman. “So, consumers are going to benefit from that.”
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One of the great things, he added, is that “as we have increased our production here in the United States and others have increased their production around the world, we’ve been able to balance the markets in a way that we haven’t been able balance the markets in a way that, frankly, we haven’t been able to do in three, or four, or five different decades. … As long as we can continue to enhance our ability to produced oil and gas here in the United States and around the world, we are going to see a great, great becoming opportunity for consumers.”
Although some states like Georgia and South Carolina have already kicked off reopening plans, others like New York, where the virus hit harder, have extended stay-at-home orders, meaning the demand for fuel should remain at low levels with prices following suit.
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The average price for regular gas is $1.86, versus $2.86 a year ago, according to AAA.