According to Bloomberg and other published reports gas prices are expected to be lower this summer.
Less expensive oil has helped said CEO Chris Faulkner, Breitling Energy Corporation, Dallas, Tx.
Triple A said on Monday, the price of regular gas in some places averaged $2.53 per gallon, down a penny from a week earlier, but off $1.29 from a year ago.
Faulkner notes that the U.S. Energy Information Administration last week forecast a national average of $2.45 per gallon for April through September, compared with $3.59 a year ago. According to the EIA, the last time drivers saw summer prices that low was in 2009.
Gas prices in South Florida tend to be higher than the U.S average because of higher taxes. Still, savings topping one dollar per gallon are saving the average household more than $100 per month, AAA estimates.
“The glut in global petroleum supplies has come at the perfect time as people hit the road,” said AAA spokesman Michael Green. “Even if demand rises, there’s more than enough petroleum to supply motorists this summer.”
Brent crude, the global oil benchmark, is expected to average $59 a barrel this year, down from $99 in 2014, the EIA said. Prices crashed as booming production in the U.S. helped global supply outpace demand by 800,000 barrels a day last year, according to the International Energy Agency.
“Lower crude oil costs are the main reason U.S. drivers will pay the lowest summer gasoline prices since 2009.
U.S. gasoline prices will be $2.50 a gallon in April before declining to $2.43 in September, the EIA said. Refiners and blenders may increase production by 100,000 barrels a day from last summer.
Public reports show U.S. drivers racked up 237.3 billion miles in January, the most for that month in government info going back to 1970. January driving grew by 4.9 percent over the previous year, the largest hike in 15 years.
Bureau of Labor Statistics data show that the U.S. economy added 591,000 jobs in the first three months of this year, after adding 3.1 million in 2014,.
That will provide a double-barreled boost to driving this summer, as more people drive to work and more households can afford to drive their families to the beach or mountains.
Faulkner heads to Birmingham on Wednesday and Thursday, April 15 and 16 to attend the Shale World UK conference and exhibition.
Even with the current fall in oil and gas prices, Chris thinks shale exploration will still be viable in the UK. “Shale oil gas will take some time to bring online,” Chris will say, “but this is a long-term investment, and prices will always fluctuate up and down. What’s key is the UK can gain independence from foreign gas by developing this massive resource under its own soil.”