The recent dramatic drop in oil prices, and therefore gasoline prices, likely will not last. Such spikes in price, up or down, tend to last longer than logic would dictate, but the pure numbers will win out.
Yes, we are producing much more oil and gas in the U.S., but fracked wells are not long-lived producers and the recent drop in prices has caused a 40 percent drop, so far, in new wells being drilled. So supply drops with price. Supply and demand is the only real law of economics (that and inflation due primarily to increased supply of fiat money).
The facts argue for higher prices in due time. Global population increases. They all want energy for heat, light, transportation, on and on! And, like it or not, the commodity is a finite resource regardless of enhanced recovery. Supply will decrease with price, demand will continue to grow.
Another consideration, not much talked about, is geopolitical. Arguably, Russia and Iran are our and Saudi Arabia’...
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