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OIL AND GAS
Gasoline prices matching oil march lower
by Daniel J. Graeber
Washington (UPI) Sep 10, 2014


Job growth booming along with oil, API says
Washington (UPI) Sep 10, 2014 - A study conducted by the U.S. energy industry's American Petroleum Institute finds the sector is supporting around 8 percent of the nation's economy.

"Oil and natural gas companies are only one part of a much larger economic success story that is creating job growth up and down the supply chain," API Upstream Group Director Erik Milito said in a statement.

API published a vendor survey listing more than 30,000 segments across the country tied to U.S. energy sector.

As of 2011, API said the oil and gas industry has supported 9.8 million full- and part-time jobs and 8 percent of the U.S. economy. Its study found benefits across the board, with the No. 1 state, Texas, boasting 1.9 million energy jobs to the bottom, the District of Columbia, with 13,700 jobs.

API credited the growth to horizontal drilling and hydraulic fracturing in shale to the increased economic benefits. In terms of job growth, the industry's lobbying group said the number of jobs tied directly to shale should increase from 2.1 million to 3.9 million by 2025.

"Thanks to innovations in horizontal drilling and hydraulic fracturing, America's potential as an energy superpower is growing, and businesses of all types are growing with it," Milito said Tuesday.

There still may be some factors that could lead to elevated gas prices, but the upcoming season should bring further relief to U.S. motorists, AAA said.

AAA reported a national average price for a gallon of regular unleaded gasoline of $3.43, a price that's held relatively stable for the last few weeks. The average price is about 4 percent, or 14 cents, less than it was on this date in 2013.

AAA has attributed a general decline in retail gasoline prices to ample supply and a market that's shrugged off geopolitical concerns.

Seasonally, gasoline prices fall in the United States after the Labor Day holiday as demand wanes. By mid-September, refineries also switch to a winter blend of gasoline, which is cheaper to make because it doesn't have to be blended to meet emissions requirements in place during warmer months.

"Motorists usually enjoy cost savings during this period; however geopolitical instability, hurricanes or events that disrupt production could still cause temporary spikes in regional prices in the coming months," the motor club said Tuesday in a weekly report.

The U.S. Energy Information Administration said in its latest short-term market report gasoline prices should continue to fall along with global crude oil prices.

EIA expects the U.S. national average price for a gallon of regular unleaded gasoline to reach $3.18 by December.

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