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Hail Shale
American Drivers Will Enjoy Another Summer of Cheap Gas

The weather’s getting warmer, and many U.S. drivers are looking forward to another summer of road trips thanks to relatively cheap gasoline. Bloomberg reports:

The EIA in its Summer Fuels Outlook sees prices averaging 23 cents higher this summer than a year earlier, primarily because Brent crude oil is forecast to be $8 a barrel more than in the summer of 2016. […]

“Usually gas prices between mid-February and Memorial Day increase somewhere from 25 cents to 70 cents,” [Patrick DeHaan, senior petroleum analyst for GasBuddy] said. “But this year we may not even see a point where gas prices get up to a 35-cent increase because utilization is already looking good and most refinery maintenance has peaked, so that is good news for motorists.”

Prices are slightly higher than they were at this time last year (and are, in fact, at nearly a two-year high), but they still remain far below what they were even three years ago, when a gallon of gas averaged well above $3.50. Today, that average is just $2.41, thanks to relatively low oil prices and an abundance of U.S. crude inventories.

It doesn’t take long to become accustomed to the status quo, but let’s remember that from 2011 to 2014, it was commonplace to be paying more than $4 per gallon at the gas station. Cheap gasoline isn’t just helpful for Americans planning their next vacation, it’s also helpful for any worker who relies on driving for his or her daily commute. The shale boom precipitated the global crude price collapse, and is therefore one of the main reasons why gas is so cheap today. Remember to thank fracking the next time you fill your tank up.

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  • seattleoutcast

    It isn’t cheap in Seattle. There is roughly 50 cents tax on a gallon of gas. Now, you have poor people who can’t afford to live in the city due to failed, Keynsian monetary policies, and are forced to live 10-20 miles out of town. Those poor people are now forced to pay more in gas because of Gaia, or something.

    But hey, don’t tell anyone that Seattle doesn’t care about “The Environment.” The poor in this city are due to evil Republican practices in Washington. Especially Trump. We all know it’s Trump’s fault.

    It’s definitely Trump’s fault.

    • Jim__L

      Except when it’s Bush’s fault. You keep forgetting…

    • Proud Skeptic

      I’m afraid that I don’t see the problem with living 10-20 miles outside of town. Those places are generally called the suburbs and living there is pretty much an American standard. In fact, people nowadays also live in the exurbs, which can be 30-40 miles outside of town.

      As for gas being cheap or expensive, I guess it depends on what you compare it to. Compared to Europe, it is dirt cheap. Compared to 2010, it is a bargain. I certainly don’t miss the days of the $90 fill up.

      I live in a pretty rural area of Rhode Island where people aren’t rich. But they seem to manage to be able to afford two cars and nobody around here drives a hybrid. The F 150 is pretty much king out here.

      God bless those frackers!

  • bashg

    Not in CA.

    • Imagine what it would be at the Californian pumps if crude were, say, $150.

  • If it weren’t for the manifold developments that have kept energy down we wouldn’t have had two terms of Obama but we would have had Romney, with Romneycare and Romney-esque policies which are nearly all nearly Clintonian. And today we would be looking at Madame Hillary. So… careful with that time travel. It will bite you on the arse.

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