Here's another reason why gas prices keep falling: U.S. oil production is at its highest level in decades. The U.S. Energy Administration said yesterday that America produced 9.1 billion barrels a day last week. We hadn't produced more than 9 billion barrels of oil a day since 1986. By comparison, Saudi Arabia is currently churning out about 9.6 billion barrels of oil per day.
As a consequence, oil prices have dropped 30 percent since mid-June. Nationwide, a gallon of gas has dropped below three dollars a gallon on average, and now goes for about $2.92.
The Department of Energy projects that production will stay at around that 9 billion barrel a day level through next year. With that kind of output, we would see the highest annual U.S. oil production since 1972.
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