By Kevin Robinson-Avila / Journal Staff Writer | Sun, Nov 17, 2013
After years of steadily rising prices, “low-cost fuel” may seem like an oxymoron.
But thanks to a steady surge in domestic oil and gas production, energy experts say consumers could enjoy inexpensive gasoline and natural gas for years to come.
MAP MASTER“The outlook is for a low-cost energy economy in the U.S.,” said Daniel Fine, associate director of the New Mexico Center for Energy Policy, which is run by the New Mexico Institute of Mining and Technology in Socorro. “This is a long-term trend, not an isolated event, and it’s something almost revolutionary.”
The country’s newfound oil and gas boom, made possible by modern drilling technologies, has helped keep gasoline prices well below the $4-per-gallon peaks that consumers faced just a few years ago. It’s also driven home-heating bills to record lows since 2009.
Now, with production still climbing fast, Fine and others say natural-gas prices will remain moderately low for another five to 10 years at least. And gasoline prices likely will continue to fall into 2014, before stabilizing at somewhere above $2 per gallon for the foreseeable future.
“I believe gasoline will reach $2.35 a gallon or less quite soon, within a year at most,” Fine said
For more of the article use this link--->http://www.abqjournal.com/302397/biz/oil-gas-production-booms.html
Good article. Most American households are saving over a $1000/yr with lower gas bills, lower electric bills, lower gasoline costs....probably more for many of them. Add in cleaner air, more jobs, less imports, more tax revenue, and the return of manufacturing to the US.
The one caveat I have is the prediction of gasoline at $2.25 in less than a year. That will all change if Israel bombs Iran's nuke facilities. There are credible reports that even Saudi Arabia is working with Israel on an attack plan. Look for gasoline to be over $4/gal within two months of an attack.
And if there is no attack, Jim?
Rather per the article if Iran does the nuclear deal with the US and Europe the uncertainty of the past ten years of conflict in the markets is suddenly gone! Indeed as I write, he deal with Iran is now reportedly done.
Watch the oil price plummet starting next week...
The price of Oil begins its long collapse post Iran nuclear deal....
from Reuters "Oil falls sharply after Iran Nuclear Deal
" ===> http://www.marketwatch.com/story/oil-falls-sharply-after-iran-nucle...
Wishing everyone a happy Thanksgiving!