Gas Prices Could Take The Plunge Below $2 This Summer

The price of gas has dropped 30% in the last year to  around $2.45 a gallon across the U.S., which has been great for people like me with larger vehicles and our sales staff. If you remember correctly we had been paying almost $4.00 a gallon at one point.

Great news though, the gas savings doesn't look like it is over! The summer driving season is on the way, and the oil boom that is supposed to be pushing the U.S. toward energy independence could backfire on them and provide even more of a discount on gas. It's looking like we will be below $2.00 a gallon again.

Why? How? Well,  there's no place for all of the country's oil to go! In 2014, the oil industry collected 8.7 million barrels a day, and despite low oil prices the U.S. Energy Information Administration is expecting production to increase to 9.3 million barrels a day in 2015 and 9.6 million barrels in 2016.

Problem is, they're running out of places to put all of it. Between February 2014 and February of this year, total oil storage capacity utilization has risen from 48 to 60 percent into U.S. storage tanks, causing inventory to reach an 80-year high.

Here's an example in words that make sense.  You will pay a ridiculous price for gas if your tank is near empty and there's not a gas station for miles, but if your tank is full and you're sitting at a gas station, what would you pay for a gallon of gas you can't fit in your car?

If $20 or $30 a barrel is where it all ends up, gasoline prices could easily be $1.50 a gallon, a  price we haven't paid since the early 2000's!