In case anyone hasn’t noticed in most parts of the country, gas is a little bit cheaper than it might have been six months ago.
My car has a fourteen gallon tank and I know that during the summer when we would go on trips that it would take considerably more money to fill the tank up than it does now.
In this part of the year it seems like gas is cheaper than it has ever been. Now, just due to naturally occurring inflation we may never go back to the days where it was a dollar and change a gallon. However, there are several factors that enter into it.
One of them is being the supply. You can have great demand for something but if the supply is enough you can still sell something at a slightly cheaper price than you had been and make an absolute killing off of it.
Oil, which then becomes gasoline is one of those things that seems to constantly show the whole theory of supply and demand turned on its ear just a little bit. However, a recent discovery might keep those gas prices on the low side for a good while.
Via Western Journal:
British Petroleum announced this week that it had identified a drilling area capable of producing 1 billion barrels of oil in the Gulf of Mexico.
The discovery was made thanks to what the company referred to as “recent BP breakthrough in seismic imaging” used for oil exploration.
And the announcement came only days after Bloomberg reported that the United States had become became a net exporter of oil for the first time in decades.
In a news release, BP announced it expected to grow its gulf production to around 400,000 barrels of oil per day in the next decade.
“BP’s Gulf of Mexico business is key to our strategy of growing production of advantaged high-margin oil. We are building on our world-class position, upgrading the resources at our fields through technology, productivity and exploration success,” said Bernard Looney, BP’s Upstream chief executive, according to the news release.