This was a question from the second Presidential debate, and as you may have noticed both candidates dodged it and talked about their own energy policies. But I think this question was answerable, and an answer would have advanced public debate. In particular, it would have dried up a couple of perennial Republican talking points.
"The main thing that determines gasoline prices is the world price of oil. We're a part of the world oil market. The oil that we produce doesn't remain in a separate pot marked "American oil;" it goes into world oil supply, and the oil that we consume comes out of world oil supply. So the question you're asking could be asked as: what can Secretary Chu do to reduce world oil prices?
"The answer, unfortunately, is not very much. If supply increases, then the price will go down. So world oil prices will go down, somewhat, if we produce more. However, oil prices will also go down if Norway or Saudi Arabia produces more. Similarly, if demand decreases, the price will go down, so we can lower the price, somewhat, by using less energy. But again, oil prices will also go down if other countries use less energy.
"The best way that we can insulate ourselves from higher gasoline prices is to make gasoline a smaller part of our budgets. Back when people were getting around by horse, a big increase in the price of oats would have really hurt the economy. Now most people wouldn't notice. As more fuel-efficient cars get on the road, the price of gasoline will be less and less important.
"So I would say Secretary Chu's job is not to lower gas prices, which he can't do very much about; it's to help us get to a future where gas prices are not so important. And he's doing a good job of that."