Goldman Sachs statement isn't that surprising when you think about it from the perspective of countries and country size. Of the major oil producing countries, the only one larger than the U.S. is Russia (Canada's reserves are mostly natural gas). In addition to this midwest boom, the U.S. also has large reserves in Alaska and in Gulf Coast and it makes sense to deploy newer more expensive technologies to extract new oil reserves because the consumption is happening so close to the source and a stable political environment makes it worthwhile to make long term investments. Also, the difference is not as big as I first thought it was: http://en.wikipedia.org/wiki/List_of_countries_by_oil_produc....

On the pricing, I'm speculating a bit but I don't think the refineries issue is that major an issue for gas pricing. If you remember, during Hurricane Katrina, a number of refineries were shut down or damaged and prices did bump up a bit, but not dramatically so. I think the biggest factor is there's a lot more demand for oil on the world market. We typically hear about the growing number of cars in China and India as people's income rises and car costs drop but the same is happening all over the world. This week the BBC had a good article on the 180km traffic jams in Sao Paulo, Brazil. http://www.bbc.co.uk/news/magazine-19660765.

Oil is a global commodity and is fairly mobile so a demand increase in one part of the world raises prices everywhere. A sustained increase in demand all over the world raises prices a lot more.