paul horsnell is the managing director and head of commodities research with barclays capital in london. thank you all very much for being here. if you could each take whatever time you think is necessary to make the points that you think we need to understand, your full statements will be included in the record as if read. dr. gruenspecht. >> thank you, mr. chairman, ranking members of the committee. i appear the opportunity to appear before you. we are the statistical and analytical agency within the department of energy. our views should not be construed as representing those of the department or other federal agencies. prices for all petroleum products have ris i don't know in recent months but gasoline prices are of particular concern to most consumers. the national average price of regular gasoline averaged $3.58 per gallon in february 2012, 37 cents higher than in february 2011 and it has certainly risen since, over the past month as well. and the february price was an historic high for any february. there is, however, significant can't regional variation in prices as illustrated

to use a -- to vary on what paul horsnell said, i think it would reanchor long expectations. obviously, it's not -- it has to be credible, and people have to see it coming. even now things that can increase the sense of confidence, what we need -- and this goes back to senator widen's question about why is this premium there. if there's a greater sense of confidence and it can come irecs an ingredient that would be even helpful in the short term. >> that would be helpful in the short term. >> dan's dan's. i think that the value add here is especially as we move into the young conventionals since we're doing it first, if the u.s. can demonstrate they can get it right in terms of both shale gas it has huge implications throughout the globe. if you're looking at a global demand, you can increase volumes by huge numbers. i guess, though, the next piece is this kind of great dilemma idea. it's just like what do we want to be? when we increase -- i know the environmental community gets very upset when you talk about 200 years of natural gas, because if you're looking to move to a l

there are concerns, i agree with paul horsnell, about the it's more about logistics than the supply of gasoline. looking forward there are some concerns particularly related if the one major so no corefinery operating in the area called sunocoph to shut down there might be some areas in the northeast that could potentially be subject to low supply. let me just leave it there because others may want to speak. >> dr. yergin. >> two point as to that. what howard says one of the refining companies has publicly said they have been losing a million dollars a day and you can't go on very long losing a million dollars a day i think we need to look at what's happened to overall u.s. energy demand. u.s. demand for oil is down 2 million barrels a day since 2007. that's a 10% drop. in fact, our demand levels now are back to what they were in 1997. so, that is part of the context in whichs howard and frank talked about is occurring. >> yes. was , go ahead. i director of crude gest independent in the united states. i think howard and dan have summarized it correctly. the refining business has always

and to use -- to vary on what paul horsnell said it would anchor the expectations. obviously it's not -- it has to be credible to see it coming but i think even now things that can increase the sense of confidence, what we need -- and this goes back to senator wyden's question on the premium if there is a greater sense of confidence, and it can come from many different directions, it is an ingredient that would be helpful in the short term. >> i am more in line with the comments. the value add here moving to the unconventional, since we are doing it first if the u.s. can demonstrate they can get it right in terms of shale gas and tight oil production, it has huge implications throughout the globe and if you're looking at the balance coming you can increase the volume by huge numbers. i guess the next piece is a kind of great alana. it's what do we want to be? when we increase, i know the environmental community gets very upset when you talk about 200 years of natural gas because if you look to move to the lower carbon economy that delays the reckoning date. there wa

paul horsnell is the managing director and head of commodities research with barclays capital in london. thank you very much for being here coming and if you could each take whatever time you think is necessary to make the points you think we need to understand, your full steegmans will be included in the record as if read. dr. gruenspecht? >> thank you mr. chairman, ranking member murkowski and members of the committee i appreciate the opportunity to appear before you, the energy administration is that statistical analytical agency within the part of energy because they do not promote or take positions on policy issues and has independence with respect to the information it provides to read it shouldn't be construed as representing those in the department or other federal agencies. prices for all petroleum products have risen in recent months but gasoline prices are of a particular concern to most consumers. the national average price of regular gasoline averaged $3.58 per gallon and february, 2012, off 37 cents higher than february, 2011 and has certainly risen over the past month as