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Customers pump gas at Costco in Aurora, Colorado. The American EIA says the costs of the consumer gas is the lowest level of 2005. years. (PHOTO Kathrin Scott Soctor / The Denver Post by Getty Images)
Denver Post by Getty Images
American administration for energy (EIA) Reports In its September the short-term energy prospects that this year’s cost of gasoline for American drivers are lowest than at least 2005. years as part of disposable income. It is a little good news for consumers and Trump White House, only one of the wealth of interesting data contained in this last EIA report.
EIA shows gas prices related to oil price
Such as it is always always the case, this year’s gas price drop in the pump was moving in a step with a similar crude oil prices. After reaching high than almost $ 79 per barrel, the west texas index index index dropped over 20% on its current level of approximately $ 63 / bbl. Wholesale prices have shown a similar decline from the top of early February in the amount of about $ 2.38 per gallon, falling to $ 1.99 / gallons from this writing.
Prices of diesel fuel followed a similar path from January. It is another positive news for consumer prices because all foods, clothing and other consumer goods are transported from factories to market through ships, aircraft, trucks and trains running a variant of diesel fuel.
More good consumer news comes in EIA projection that further reduction in energy prices remain in front of the months coming. “We expect that the price of Brent crude oil will significantly decrease in the following months, in the fourth quarter of 2025. Years,” EIA Analysts, predicting another 25% decline in the plant, “EIA Analysts.
In order for additional price reduction size to be supported by President Donald Trump’s recent statement To expect gas prices to fall into a range of $ 2 / gallons in the coming months. While the current national Average retail price For regular gasoline, it is $ 3.19 according to AAA, it is inflated to much larger prices in high tax conditions such as California, Oregon and Illinois. The average gas prices are closer to $ 2.70 in low prices like Texas, Louisiana and Alabama.
EIA sees natural gas prices on the rise
Although low oil prices are never good news for drilling focused on oil, EIA says that there are good news about the horizon for upstream companies that want to produce more natural gas. “We expect the price of natural gas Henry Hub from averaging $ 2.91 in August to $ 3.70 / MMBt in 4×25 and $ 4.30 / Mmbtu next year,” EIA-E Analysts, “EIA-E-E Analysts in the last 16 years.
The prices of natural gases in the United States were mostly bound between 2 / MMBTU and 4 / MMBTU since 2009. years. Lonely fairly long-term exception to Teradigma came into a post-circle world in 2022. early 2023. years, when the chronic chain and labor issues caused temporary lack of supply.
By the way, the pure size of the American natural gas resource has enabled drills to quickly overwhelm temporary spikes in prices by activating a series of additional drilled and riding prices backwards with higher amounts of production. With only 110-120 Active measures Currently targeting the creation of natural gas, it is a safe bet to quickly create a similar response to supply, if the home price prices must start 4 / mmbt in the amount of 4 / mmbtu as EIA projects.
Predicting this permanent reality, EIA analysts say that “expect drilling activities in the United States to be centered in regions that produce natural gas in 2026”
EIA report emphasizes tension in agottic agenda
These and other data points contained in this EIA report are in line with the aim of trump white house to reduce energy costs to consumers as a major element in reducing inflation rate. At the same time, the daily news becomes increasingly more closely Relegation reports taking place in industry oil and gas and major Services for services who deliver another leg of Trump agenda: American domination of energy.
As I He pointed out here Shortly after last November elections, this second Trump Presidency would become reboot from 2017-2021. Maturity in the development of large corporate drills for focusing larger capital funds on increased dividends and purchase programs Stock, eliminate this possibility.
The good news for American petrol consumers almost always means bad news for oil and gas producers. What this most recent Outlook EIA is as much as anything inherent that is the inherent tension in these two main aspects of the Trump energy agent is still alive and good.
