Gasoline prices rose to their highest level in the past two years yesterday. According to AAA, the average price of gasoline climbed one penny Dec. 29 to $3.071 per gallon. This is the highest level since October 15, 2008, when the average price of gasoline reached $3.084.

If you've been reading this blog, you're aware that the cost of crude oil is the largest factor in the price of gasoline. Between November 17 and December 28, crude oil prices increased 26 cents per gallon to $2.18 per gallon ($91.49 per barrel), which was the highest level in October 3, 2008, when the per-barrel price reached $93.88.

Demand for gasoline and diesel fuel also have climbed recently. Last month, according to API's Monthly Statistical Report, gasoline demand rose 3.2 percent over November 2009. Demand for Ul... more »

As the nation approaches the New Year, reporters around the country are writing about the energy outlook for 2011. There are quotes from analysts predicting oil and gasoline prices; opinion leaders discussing energy policies likely to be considered by the 112th Congress; and professors explaining the relative merits of fossil fuels and alternatives.

There also are some very knowledgeable and thoughtful bloggers who have done a significant amount of research into energy issues and have provided their insights online and in print. Here are some bloggers' comments about U.S. energy policy that recently caught my eye. Read them carefully and you'll see they share a common theme:

Byron King, who wrote extensively about the Deepwater Horizon tragedy, recently turned his attention toward the gove... more »

The presumption of innocence is one of the founding principles of the U.S. justice system. Simply put, anyone accused of a crime in the United States is presumed innocent until proven guilty.

Apparently that principle didn't apply to an order issued by the Environmental Protection Agency (EPA) to a natural gas producer.

According to an article in the San Angelo Standard-Times, the EPA recently issued an emergency order that "tried, convicted and sentenced" a natural gas company accused of polluting two water wells in Texas with methane gas. Weeks later, evidence shows that the company Range Resources was not responsible for the methane leaks.

As the article authored by Alex Mills of the Texas Alliance of Energy Producers explains, the water wells were drilled in 2005 and Range Resources dr... more »

If anyone doubts the current administration's negative impact on U.S. oil and natural gas development, the Western Energy Alliance (WEA) has some news for you: The numbers don't lie.

The WEA recently compiled government data showing trends in oil and natural development on western public lands. The figures are revealing:

• In its western offices, the Bureau of Land Management (BLM), a division of the U.S. Department of the Interior, issued 531 leases for oil and natural gas development in Fiscal Year (FY) 2010, a 79 percent drop from the 2,499 leases issued in FY2005.

• Since FY2005, BLM has offered 60 percent fewer parcels and 70 percent fewer acres to development.

• Leasing revenue to the federal government fell 46 percent from $189.6 million in FY2005 to $101.6 million in FY2010.

• In th... more »

Did you know that the U.S. Environmental Protection Agency (EPA) has the authority to levy taxes? If you're scratching your head over this tidbit of information, you're not alone.

Here's the issue: A couple of weeks ago, the EPA determined that the amount of cellulosic ethanol that should be included in the nation's gasoline pool should be increased from five million to six million gallons in 2011. The goal is to ensure there is a market for this new fuel that is supposed to be made from switchgrass, wood chips, or other forms of cellulose-rich materials.

The problem is that there is virtually no cellulosic ethanol on the market today. The technology hasn't developed to the point where large quantities of this fuel can be produced.

Still, the oil and natural gas industry is expected to com... more »