Wed 26 Aug 2015
This is good news for those drivers in the US and the world for that matter. It will probably mean that transportation will be carbon based for the foreseeable future.
Gas is suddenly cheap(er); the reason is bigger than you think
Gas prices have fallen below $3 per gallon in much of the US, and the explanation isn’t the simple seasonal differences that always make gas cheaper in autumn. The bigger reason: US oil shale deposits are turning the global oil market on its head.
How did cheap gas happen?
In the simplest terms, supply is up and demand is down.
Travel drops between the summer travel season and the holidays, and cooler temperatures actually make gas cheaper to produce. That’s why gas prices always fall in the fall.
But that’s not enough to explain this autumn’s decline, since gas hasn’t dropped this low in years. China is also using less gas than expected, but that’s also only part of the explanation
Go there and read. More next week.