Lower gas prices throughout the nation have been cause for shock and celebration the past few months. When visiting the gas station, people are saving money significantly each time they fill up. This trend has excited the nation, especially during the travel-filled holiday season, and the prices are predicted to continue to drop.
The main reason that these prices are dropping is the increasing amount of crude oil produced in the United States. International oil companies were able to keep oil prices ridiculously high because of the demand. Americans needed oil, and the main place oil was purchased was over seas, particularly in the Middle East. With the increasing number of oil companies selling their products domestically, America is able to buy internally, circulating money into the economy and saving consumers a dollar or two.
According to the American Automobile Association (AAA), the national average regular gas price currently is about $2.23. A year ago, the average was about $3.32. In 2014, Americans saved about $14 billion on gasoline compared to what was spent in 2013. South Carolina had the lowest gas price for three years in a row. In 2014, gas was on average $3.10. The state with the most expensive average gas price was Hawaii, ringing in at $4.16 per gallon. Missouri, Oklahoma, Ohio, Michigan, Kansas and Indiana all have gasoline averages under $2, and individual prices have been spotted in other states under $2 like in Virginia and South Carolina.
The lower gas prices are certainly boosting American morale. The United States industry is beginning to bloom again, and people are taking pride in American products. Many Americans are enjoying this reprise from exorbitantly high gas prices. Travelling for the holidays was much easier on the bank account of many families because they were saving $10-$20 each time they filled up their gas tank.
Not all are joyous about the drop in price though. Harold Hamm, former owner and current significant stockholder of Continental Resources, is now appealing his $1 billion divorce award because he is now not able to afford it. His finances are predominately wrapped in the oil industry, and the drop in oil has caused him to lose a significant portion of his worth. His now ex-wife Sue Ann Arnall is still asking for the $1 billion, and the two will be returning to court to discuss it.
As long as American oil production companies can keep up with the demand, gas prices should continue to drop for a little while. The economy and prices of oil are filled with peaks and lows. This is a low spot, but inevitably prices will rise. It’s just a matter of when. It is a hard to make a strong prediction for gas prices though, because there is so much variability that lies within the market. As long as things stay the way that they are, Americans can expect gas prices to continue to drop. So celebrate the low gas prices while they’re available; go for a road trip, or take extra long at the pump to relish the moment. It won’t be here forever.
