Gasoline, like dozens of other resources, has been a painful necessity for the average driver over the last ten years. Like water, electricity and food, gasoline is one of America’s most-used resources. However, over the last two months, most drivers have noticed a significant decrease in the amount of money they have been taking out their pockets at the gas pump. This is due to a 28 percent decrease in oil prices.
According to fedprimerate.com, oil, the main source used to create gasoline was once priced at nearly $107.00 a barrel (42 gallons) in mid 2014. Due to oil companies using new techniques to drill for oil, prices have plummeted to only $66.00 a barrel over the last six months. But why? Where is this oil coming from? Did we make some kind of deal? The truth is that the United States has actually been finding its own oil for about the same amount of time that we have all seen a drop in gas prices. Sates like North Dakota and Texas have had a booming market for oil drilling over the past year due to new techniques for drilling and drilling in new areas. Gasbuddy.com has a recorded chart for U.S. prices showing some cities getting prices lover than $2.31 per gallon!
This isn’t necessarily the first time gas prices have dropped by a substantial amount over the last couple of years, but this is one of the lowest recorded falls in cost-per-barrel over a six-month period. What does this mean? According to nytimes.com and AAA Auto Club, the average family could be saving up to $120.00 a month for every ten cent drop in the price of gasoline. While there are dozens of experts with mixed predictions about what will happen next with the price of oil, there seems to be good signs of stability until the holidays are over.