Fears are growing that rising gasoline prices could stifle economic recovery. Those rising gasoline prices are becoming a subject of hot political debate in a presidential election year. Geopolitics is behind the rising prices, most noticeably due to the increasing tensions over Iran’s nuclear program.
The North American natural gas boom has made the U.S. the biggest natural gas producer in the world with the cheapest gas, but whether it becomes a big exporter is yet to be seen.
The U.S. can be energy independent in fewer than 10 years if it keeps developing domestic oil and shale gas fields, a TransCanada official told CNBC Tuesday.
"There's nothing inevitable about it," one economist says about the widespread predictions about $5 gas. "To a large extent it depends on what happens in the Middle East."
Improving oil demand is driving prices more than any cutback in supply from Iran, according to Jeff Currie, Goldman Sachs head of commodities research.
The shale gas energy industry needs to put in place better practices and reporting about "fracking" before public concerns delay or even stop use of the technology that has created a boom in U.S. natural gas production, according to the MIT professor who led President Obama's subcommittee on shale gas.
“Where natural gas prices are now kind of resets the economics for the whole energy market place,” says Daniel Yergin, chairman of IHS CERA, which hosts next week's big energy conference.
Why are drivers in Fort Collins, Colorado paying a little over $3, while those in Santa Barbara, California are seeing gas prices at $4.33 a gallon?
A confluence of factors is fueling the quick rise in gasoline prices, not the least of which is the state of the U.S. refining industry.
The risk premium due to Iran could be contributing as much as $15 to $20 a barrel to global oil prices, according to some experts. But traders warn of more upside risk.
While U.S. drivers continue to cut back at the pump, refiners are increasingly sending more gasoline and diesel fuel overseas, making the U.S. a net exporter of refined products for the first time in more than a half century.
Pending sanctions against Iran are designed to cause swifter economic pain than past penalties, and Iran is ramping up rhetoric in response.
Natural-gas futures hit a fresh 10-year low Thursday and will likely decline further as the latest supply data confirms an abundance of U.S. gas supplies amid new predictions for a warm winter.
Daniel Yergin shared his thoughts with CNBC on some of the hot topics in the energy world. Yergin is the author of the new best-seller "The Quest: Energy Security and the Remaking of the Modern World," the successor to his Pulitzer Prize winning book, "The Prize."
CERAWeek brings together leaders from around the world to discuss energy, security and the future of economic growth.