United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 2007-01-19 monographic deposited born digital 30 p. GA 1.13:GAO-07-315 https://www.govinfo.gov/app/details/GAOREPORTS-GAO-07-315 P0b002ee1803733f1 f:d07315 DGPO 2010-08-12 2011-03-28 GAOREPORTS-GAO-07-315 machine generated eng fdlp REPORT GAOREPORTS-GAO-07-315 GAO-07-315 Comparative benchmarking products Crude oil Domestic crude oil Economic analysis Fuel prices Oil importing Petroleum industry Petroleum prices Prices and pricing Standards Supply and demand California Other Written Product A64988 California is the nation's fourth largest producer of crude oil and has the third largest oil refining industry (behind Texas and Louisiana). Because crude oil is a globally traded commodity, natural and geopolitical events can affect its price. These fluctuations affect state revenues because a share of the royalty payments from companies that lease state or federal lands to produce crude oil are distributed to the states. Because there are many varieties and grades of crude oil, buyers and sellers often price their oil relative to another abundant, highly traded, and high quality crude oil called a benchmark. West Texas Intermediate (WTI), a light crude oil, is the most commonly used benchmark in the United States. The price difference between a crude oil and its benchmark is commonly expressed as a price differential. In fall 2004, crude oil price differentials between WTI and California's heavier, and generally lower valued, crude oil rose sharply. GAO was asked to examine (1) the extent to which crude oil price differentials in California have fluctuated over the past 20 years and (2) the factors that may explain the recent changes in the price differential between California's crude oil and others. GAO analyzed historical data on California and benchmark crude oil prices and discussed market trends with state and federal government officials and crude oil experts. https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-07-315/html/GAOREPORTS-GAO-07-315.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-07-315/pdf/GAOREPORTS-GAO-07-315.pdf GAO-07-315 https://www.govinfo.gov/app/details/GAOREPORTS-GAO-07-315 Other Written Product GAO-07-315; Crude Oil: California Crude Oil Price Fluctuations Are Consistent with Broader Market Trends; Comparative benchmarking products Crude oil Domestic crude oil Economic analysis Fuel prices Oil importing Petroleum industry Petroleum prices Prices and pricing Standards Supply and demand California