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March 22, 2012
Brattle Principal Phil Hanser Featured in USA Today and BusinessWeek on Gas Pricing

Brattle principal Phil Hanser has been featured in articles that appeared in both USA Today and BusinessWeek discussing the lack of a correlation between U.S. oil production and the price of gasoline per gallon.

A statistical analysis conducted by the Associated Press examining 36 years of monthly, inflation-adjusted gasoline prices and U.S. domestic oil production showed no statistical correlation between the amount of oil from U.S. wells and the price paid by consumers at the pump. The Associated Press commissioned Mr. Hanser, among other experts, to review the findings of their analysis. After careful examination and calculations, Mr. Hanser reached the same conclusion, supporting the notion that the United States alone cannot change the supply-and-demand equation in the world oil market.

The articles explain how gas prices can increase even as domestic production grows because oil is a global commodity, and U.S. production only has a small influence on supply. Since February 2009, U.S. production increased 15 percent, while prices during those three years rose from $2.07 per gallon to $3.58 per gallon.

To read the complete articles, please visit the USA Today and BusinessWeek websites.