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Gas prices in the Racine-area have plummeted to $2.27 a gallon and gas prices have sunk to a four-year low at $2 per gallon in some areas of the U.S, according to industry and media reports.

So what gives?

Oil prices are mainly dropping because the U.S. is pumping out a lot more oil in North Dakota and Texas because technology advances have have allowed companies to tap into areas that previously not cost effective to drill in. With the U.S. less reliant on foreign-oil, it has less effect on the price. But U.S. demand for oil though is also shrinking.

So how low can the gas prices go?

Analysts say we could see $2 before too long, according to a story by Dailyfinance.com.

 

 

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Denise Lockwood has an extensive background in traditional and non-traditional media. She has written for Patch.com, the Milwaukee Business Journal, Milwaukee Magazine and the Kenosha News.