Gasoline Prices Back On the Rise\Production Falls

• U.S. Petroleum Product Prices. Regular-grade gasoline prices averaged $2.35 per gallon in 2009, increasing from an average of $1.79 per gallon in January 2009 to $2.61 per gallon in December. EIA expects these prices will average $2.84 per gallon in 2010 and $2.96 per gallon in 2011. Average regular-grade pump prices likely will exceed $3 per gallon at times during the upcoming spring and summer and will easily pass that benchmark in high-cost regions, such as the West Coast. Due to forecast growth in motor gasoline consumption, the difference between the average gasoline retail price and the average cost of crude oil increases slightly in both 2010 and 2011.
Production growth in 2011 slows sharply to 20,000 bbl/d, as substantial declines in the Federal Gulf of Mexico and Alaska almost offset gains in lower-48 on-shore production.