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Hi Marilyn,
Part of the problem is that U.S. are refineries are not up to speed - there hasn't been a new one built since the 1970's and the ones we have are old and antiquated. I'm not sure why they have been allowed to go downhill. It means though, that even if we step up oil extraction in the U.S., we can't refine enough to make much difference.
Another thing contributing to the high price of oil is the weak dollar - so we have to pay more dollars for the same amount of imported oil - even if they weren't raising the prices - which of course they are - but the weak dollar means we are paying more of them for oil. The weak dollar is tied to the national debt, which is quite high now.
I've been told that commodity trading of oil on the stock market has created a "middle man" is also contributing to the rise in gas prices. I don't understand that one though, maybe someone can explain it to me.
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