A growing political issue that will be at the forefront of debate during the 2012 election is the price of gasoline. Americans are currently coughing up on average almost $4 a gallon at the pump, and prices don’t seem likely to decrease anytime soon. Republican presidential candidate New Gingrich claims that he would enact policies to lower gas prices to a much more manageable $2.50 a gallon. But how much does political will have an affect on oil prices?
According to Shell CEO Peter Voser, not as much as you’d think, especially considering the United States isn’t the only country that is thirsty for oil– emerging economies in China, India, and Brazil are also heavy energy users. There is also the issue of a basic economics concept: the supply chain: