As one drives down Delaware’s Route 202, passing multiple gas stations along the way, it is hard not to notice the instantaneous drop in gas prices. With an average gas price of $2.07, Delaware is right at the country’s average of $2.06. Pennsylvania, on the other hand, has average gas prices at $2.26. Nationally, the gas prices are down from an average of $3.31 in August 2014, while locally, Delaware is down from $3.41 during the same time period. While disappointing for PA citizens, everyone is pleased with the improvement made from last year. With nearly a dollar per gallon of savings, everyone is eager to take advantage and fill up.

Students are readily accustoming themselves to the new prices. When asked about the lower prices, Steven Maguire ’16 said, “It’s great having lower gas prices since I have to fill up my mini-van so often!” Not only are students loving the cheap prices, but the faculty are enjoying it too. Chamby Zepeda, who just recently purchased a Jeep, said he is “good with the cheap.”

Several factors have contributed to the decrease in prices, but the primary source is considered the fracking industry. Because of fracking, US production of oil has been at its highest in 30 years. The word “fracking”, short for hydraulic fracturing, is being used more frequently as the oil and natural gas exploration industry grows. In the fracking process, highly pressurized water is pumped into shale rock, which fractures the rock and releases the natural gas and or oil.

Natural gas is not only used as an energy source for heating, cooking, and electricity generation, but also to fuel for cars. However, fracking is much more expensive than regular oil drilling, and, even though many US shale oil producers have far higher costs than conventional rivals, many need to carry on pumping to generate at least some revenue stream to pay off debts and other costs.

Since 2008, U.S oil production has risen from about 5 million barrels a day to more than 9 million—an 80% increase due mostly to fracking. The irony though is that although the fracking industry is helping the price of oil go down, it is hurting the fracking companies themselves. Experts claim that U.S. oil that comes from fracking needs to sell at $85 or $90 a barrel to be profitable. So, with the price of a barrel of oil down to approximately $45, many companies involved in the fracking industry could be in trouble. With the recent plummet in price, applications for new U.S. well permits dropped by nearly half in November, 2014. Because of the OPEC’s(Organization of the Petroleum Exporting Countries) “no production cuts” policy, it is possible that there will be a large drop in shale oil exploration and production.

While the very affordable gas prices have been enjoyable, it is only a matter of time before they go back up to where we as consumers are used to seeing them. “I think that it is a good relief after years of people fearing that it might go over $4.00 a gallon, but people shouldn’t get too comfortable because the price is bound to go back up,” commented Blaise Glowiak ‘16.

For the time being the American people and beyond can enjoy the benefits that come from the cheaper gas. Consumers are enjoying the extra cash in their pockets and spending it on excess goods they wouldn’t normally buy. Having gas prices approximately a dollar cheaper than they were a year ago may not seem like an enormous difference, but the amount of money being saved monthly is astounding.

The cheap gas will cause companies to lower transportation costs which will also give manufacturers less urgency to raise prices as their costs fall. This increases the likelihood of people traveling more. This consumer confidence allows buyers to feel better about their economic success. However, not everything is positively affected by the cheap oil. The fluctuation of oil will make it hard for other sources of energy such as solar panels to be competitive.  As of now, everyone has the pump in hand and eyes glued to the prices, anxious of when the prices will climb again. Only time will tell.