Increased oil and gas drilling leads to lower prices at the pump

Gasoline prices have hovered just below $3 a gallon at the pump, and oil prices are steady at about $80 a barrel.

The cause of these prices, according to The Plain Dealer, is shale oil and gas drilling. A combination of dry gas and wet gas wells has increased the amount of natural gas produced each day. Natural gas is being produced at 70 Bcf/d. Oil wells are producing natural gas too, adding to the growing surplus.

Low oil prices could force shale producers to cut back on horizontal drilling so that the surplus of natural gas slows.

Via: The Plain Dealer > Price decline at the pump could mean price increase at the thermostat