Last week I predicted we would eventually reach $20 a barrel for oil.  Yesterday, we got more proof that we are well on our way:
http://apnews.myway.com/article/20081221/D957BHRG0.html

Gas prices fell nine cents nationwide in the last two weeks.  Crude prices are down also from a record high of $147 a barrel in July to $41.07 a barrel today. The result?  We now have the lowest gas prices in five years. What explains this dramatic drop from where we were last summer?

For starters, less driving is driving it.  In other words, people don’t drive as much in the winter as they do in the summer (when families traditionally load up for vacations or other long distance trips).  Since demand has gone down, so has the price.  Also, the troubles of the domestic car inudstry are impacting demand.  Fewer people are buying fewer cars and that’s helping put downward pressure on gas prices.  All of this leads me to continue believing that we are heading to $20 a barrel.

But let’s not lose sight of the big picture.  Low gas prices give us time to think about our future energy needs.  We need to work today to create tomorrow’e energy.  Our country, our economy and our future demand on it.

-Randy Hill