The recent drop in crude oil prices has driven the cost of gasoline down to remarkably low levels across America. It’s a whole new era, with our country suddenly awash in relatively cheap oil. This couldn’t come at a better time for many families, with all that newly liberated cash finding its way into the holiday gift budget. The piggy bank’s been fracked and we all need new jumbo flat screen TVs, the latest video games and fuzzy blankets.
So how low will gas prices go? What’s really driving the price drop? Is it simply all of the oil flowing from the Bakken Shale or is there more at play? Will OPEC’s gamble pay off? Are we on the right path to American Energy Independence? How does this drop compare to previous drops? (See: Historical Price of Gasoline in America).
I shot a little in-car stream of consciousness video while driving Slambo this week. Please take a gander and tell us what you think in the comments …
– by Daniel Gray
I’ve been wondering how long the low gas prices will last as well. How low seems to involve a lot of guess work on the part of the prognosticators. I expect to see something originate from the White House that will make the competitiveness of US companies more difficult.
I like the info that Dan gives regarding the price of oil and still the need to find a way to burn less of that oil. He hits the mark every time.
The tide is receding on oil prices but the tsunami is inevitable! In 2013 the US consumed 18.89 million barrels of oil per day. First week in Jan 15 we produced 9.192 MBPD and imported 7.492 MBPD. There has been a 40% drop in applications for new oil wells because fracked oil is more expensive to get and at the current price of oil is not profitable. SUV’s and Pickups are once again outselling more fuel efficient cars. All this adds up to a very significant rise in the price of oil in the not too distant future. I would take this opportunity to sell the SUV and get a fuel efficient Hybrid or Electric car.