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OIL AND GAS
Dalrymple leans on Washington for safer oil delivery
by Daniel J. Graeber
Washington (UPI) Aug 12, 2014


AAA says gas prices shrug off overseas turmoil
Washington (UPI) Aug 12, 2013 - The U.S. national average retail price for a gallon of regular unleaded continues to fall despite overseas turmoil, motor club AAA said.

AAA reports a national average price Tuesday of $3.47 for a gallon of regular unleaded, down 2 cents from this time last week and 15 cents from one month ago. The national average price for this date last year was $3.52 per gallon.

AAA says drivers in most states saw prices at the pump decline, though some markets posted incremental increases last week because of refinery issues in the Midwest and Central states.

In an asessment on price trends, published Monday, AAA said crude oil prices have traded near multi-month lows despite U.S. airstrikes on Sunni insurgents in Iraq, simmering internal conflicts in Libya and ongoing tensions between Russia and Ukraine.

"None of these occurrences have resulted in a disruption to supply," AAA said.

The U.S. Energy Department says 67 percent of the price at the pump is tied to crude oil prices, with the bulk of the rest associated with refinery costs and taxes. The department says it expects gasoline prices to average $3.54 for the full year and fall to $3.45 in 2015.

North Dakota Gov. Jack Dalrymple said he was pressing the U.S. energy secretary on comprehensive ways to make crude oil transportation safer.

Dalrymple arrived in Washington to take part in the U.S. Energy Department's Quadrennial Energy Review. He said he was there to press U.S. Energy Secretary Ernest Moniz on ways to make the transportation of crude oil as safe as possible.

The state's government said May oil production, the last full month for which data are available, was 1.04 million barrels per day, a new all-time high for the state and the second consecutive month with oil output above the 1 million bpd mark.

More than 90 percent of the oil produced from North Dakota comes from the Bakken reserve area, though there's not enough pipeline capacity to keep up with the accelerating pace of production. Industry officials say that leaves rail as the primary alternative transit method.

Dalrymple said in a statement Monday the meeting was a "great opportunity to press the secretary for continued support in addressing important issues, including transportation safety, pipeline development and value-added opportunities."

The governor in June boasted gross domestic product in the state had increased for the fourth year in a row and topped all other U.S. states. The state's mineral resources accounted for 3.6 percent of the growth in gross domestic product.

The North Dakota Attorney General's Office says drug crimes are up 19.5 percent from last year.

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