The reason behind the falling gas prices

Gas prices continue to plummet and people in the oil business said you can expect them to drop even more over the next two months.

The reason? Oil companies drilling in North America.

This is the first time since 2009 oil has dropped below 60 dollars per barrel.

Lower gas prices aren’t the only thing consumers can see drop.

Tom May with MFA Oil said the United States is producing its own oil, which means it isn’t relying on foreign oil and the terms set by another government.

Since the US can’t export oil right now, it’s being kept here in the states, which can boost the American economy.

Within the next two years we may even see gas prices closer to a dollar a gallon rather than two.

May said on average it’s 20 dollars cheaper to fill up at the pump now than it was a year ago.

The cost per barrel has dropped to 60 dollars and could get down to 50.

“You know with each ten dollars it falls it can mean another 12 to 15 cents a gallon cheaper at the pump,” said May.

He said fracking, the new process to get oil, is making it easier to get the oil we once couldn’t.

May said the US is one of the top producers of oil in the world right now.

“The fact that we are, that we have our own steady supply of oil in the United States is huge for our country because we are the ones dictating what oil prices are in the world rather than foreign countries dictating it to us.”

If oil stays in the United States it means it’s cheaper to transport and that means cheaper gasoline.

May said since diesel fuel has also gone down, most of the goods consumers buy are transferred by tractor trailers that burn diesel fuel.

“So, you know, a lot of cost associated with packaging and transportation go into the cost of the final cost of the goods we buy. So, hopefully that translates into maybe some cheaper prices at the grocery store,” said May.

Consumers in Mid-Missouri said they not only like the cheaper gas, but that they think it will help the economy.

“I think it will help the economy and I think people will turn loose their money and start spending it again instead of spending that extra buck fifty or whatever for fuel,” said Terry Martin, the Mayor of Elsberry.

May also said by drilling for oil in the US this will create jobs here and boost our economy.

He said the demand is falling and the US is still producing an abundance of oil.

Gas in Columbia on Thursday was as low as $2.15.

In Jefferson City, it’s hanging out around $2.29.