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Despite a World on Fire, SA Gas Prices Start Dipping Below $3

 
Despite a World on Fire, SA Gas Prices Start Dipping Below $3
Posted Wednesday, September 3rd 2014 @ 12pm  by Jim Forsyth, photo credit Getty Images

The jihadi group Isis can huff and puff and make belligerent threats against the United States, but one thing that Isis can't do, and no other Middle Eastern nut case can do any more, is affect our gas price, Newsradio 1200 WOAI reports.

  Despite the brutal activities of the Muslim extremist group in Iraq and Syria, and despite problems in Israel, Iran, and the Ukraine, among other hot spots, the price of gas in San Antonio is falling, and prices under $3 a gallon are now appearing at gas stations in the city.

  Bud Weinstein of the Maguire Energy Institute at Southern Methodist University says two things are helping push gas prices down, and he says the booming domestic oil production is only one of the factors.

  "A lot of people don't know that we consume less gasoline today than we consumed in 2007," he told Newsradio 1200 WOAI's Michael Board.  "Mainly because cars today get a lot better mileage."

  But the biggest symbol of U.S. victory over the bellicose Middle Eastern crazies has been the fracking boom.  Analysts say had this same confluence of events happened five years ago, we would not be looking at gas under $3, we would more likely be looking at gas over $8 a gallon, or more.

  "A decade ago, were all this nonsense going on in Iraq, Syria, Iran, there would have been a huge spike."

  For decades Middle Eastern leaders would intentionally manipulate the world price of gasoline.  If Iranian leaders needed an influx of cash, for example, they would go out and threaten to destroy Israel, see the world oil markets skyrocket, and watch the cash rolling in.

  No more.

  Analysts say if the U.S. drilling continues, and all indications are the U.S. production is growing, the Middle Eastern despots will remain neutered.  Another factor working in the favor of drivers who want lower prices is the fact that Mexico recently privatized its oil industry, which means huge production increases are expected south of the border as well, helping to boost Mexico's economy and making North America energy independent.

 

 

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