I cannot remember a Thanksgiving season, the biggest travel holiday in America, where the gas prices went down before.
When more demand chases a given supply, the price goes up.
Demand was higher this year than last year, and the prices went down. Last year prices went up 30¢ a gallon from late October to November ($2.119 to $2.419). This year prices went from $2.549 in late October to $2.179 today, a fall of 37¢. Early October was $2.699...
That says that supply is outstripping demand, despite the increase.
More pipeline capacity is coming online, I expect to see prices drop even further and possibly stay down for a while.
Now if we could just start accessing all that oil and gas off of Florida's coasts...
ReplyDeleteI've got a friend I used to work with who moved back to the family farm in north central PA 6 or 8 years ago. She lives over the Marcellus shale gas deposits. A gas company paid them to frack and leave a well on their property. Not much, but $20 a month (?) is better than nothing. It would be cool to have enough gas to run your house coming off your own property.
ReplyDeleteI've always said they're welcome to "drill here, drill now" on my property and hand over a check every month. Of course, Florida has outlawed that because reasons.
I've got property in Louisiana that produced $10,000 a year to the family back in the early 50's. Now? They rent land and an exploratory well that just covers the property and income tax. Waiting for the price of oil and gas to fall, and technology to advance enough, to make further recovery economical.
ReplyDeleteOne of these days, I'll be an oil baronette… maybe...