Perhaps you’ve noticed the recent decline in gas prices. After all, they’re nearly half of what they used to be. But if you’re wondering what’s caused this sudden change in the game, well, you’re not the only one. The good news is that the prices are the way they are for reasons that hit close to home for us Americans.
That’s right, domestic oil. The idea of drilling for our own oil in the US has been a long-standing debate for some time now. Fast forward to the end of 2014 and it’s finally come to fruition. The major contributing factor to the drop in gas prices is the fact that petroleum companies are drilling in the US. What a noble idea! With US companies drilling for this resource at home, all of a sudden, the prices placed on petroleum used here in the states aren’t contingent on some other country’s economic interest.
In addition to this, petroleum isn’t being exported from the US right now. What that means is that it’s staying here at home and is bound to boost our own economy. Some experts have speculated that the drop in gas prices is only going to continue too. Within the next couple of years, industry professionals suggest that prices may even be inching further away from the two-dollar-per-gallon mark and closer to one dollar per gallon.
The second biggest contributing factor to the drop in gas prices is the use of a relatively new form of petroleum extraction. This technique is referred to as fracking. Fracking allows petroleum to be extracted from places that use to be a dead end. With fracking techniques used by numerous companies, the US is tapping into its previously unreachable stores. In fact, the US is one of the leaders in petroleum production globally now.
This means that as a global player in the petroleum market, we are no longer merely an interested buyer, but a self-sustaining petroleum powerhouse. This means a lot for the price of fuel as it also eliminates the costly process of overseas shipping. All in all, the decrease in gas prices means a boost to the American economy. And with oil being reachable in places it wasn’t before, this has also produced more jobs for Americans.