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Gas Prices Predicted to Stay Down

Updated: Wednesday, November 20 2013, 12:20 AM EST
FLORENCE, Ky. (Paula Toti) -- Gas prices have been falling for the last ten weeks, and that’s good news heading into the Thanksgiving driving season.

Could this become a long term trend?

With six kids to take to places Myra Tucker is really focused on gas prices and her holiday plans are looking brighter with where prices have been lately.

“Its' really nice for traveling hopefully it will stay that way.”

They should stay that way according to John Schmitz, oil analysts for Bahl and Gaynor Investment Counsel.

It's a matter of driving demand and oil supplies being in good balance and no disruption at refineries. But there's also a new important piece of the puzzle.  Supply should continue to rise due to the discovery of a way we can harvest oil in our own country. 

Companies are fracking into shale.

“Based on this new technology the reserves have exploded, so many opportunities to generate oil and that's what changed in the last five years.”

Schmitz says prices will still fluctuate.  But from the way things look now, the low to mid three dollar range could be the new normal even though drivers are skeptical.

“It's going to go higher during the holidays it always does.”

Actually this year we're starting out to be  a bit lower than last year and in line with two years ago.  But it's the long term that looks brighter.

“The decrease is great, more money for family.  Really a bummer when it goes over four bucks a gallon.”

Another reason Schmitz says that's not in the cards is because driving demand has been flat the last three to four years. But that part of the story has its down side.

“We're just not driving as much still high levels of unemployment.”

But to end on a positive note the US is producing so much oil that by 2020 it's predicted we'll be energy independent producing as much as we consume.Gas Prices Predicted to Stay Down


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