Gas Prices Down....But for How Long?
Anyone who fills up their gas tank on a regular basis has undoubtedly noticed that gas prices have dropped over the past few weeks. Even with this lull, don't let this drop in price ease your mind that they will stay that way. According to the Energy Information Administration (EIA), under the Department of Energy, gas prices will only follow this trend for a short time. In the EIA's Short-Term Outlook report, it states that gas prices will fall only in the short-term. After this short respite, prepare yourselves for increases in oil prices from increased demands that the winter seasons brings.
The report states; "Residential heating oil prices during the upcoming heating season (October though March) are projected to average $4.34 per gallon compared with $3.31 during the last heating season, an increase of about 31 percent."
What will help smooth the "peaks and valleys" that accompanies oil prices? Wide-spread adoption of energy-efficient technology. The world's need for oil will not be eliminated overnight, but the increased use of energy-efficient technology will wean everyone off the dependence for oil.
08-18-2008 10:41 AM