Commodity Prices: Are We "Fossil Fools?"

This morning, someone asked me what is going to happen when they basically start giving oil away.  He said based on supply, gasoline should be 30 cents a gallon at the pumps, like the old days when he was a kid.

I was stunned.  In fairness, this happened before I had any coffee.  But, I was still stunned.

I know what happens when oil is at $110 per barrel and I know what happens when a gallon of gas costs $4.00... but 30 cents a gallon?!

In case you were wondering, it looks like a gallon of gas hasn't cost 30 cents a gallon since about 1965, according to reports by energy.gov.  This also doesn't take into account inflation.

Interestingly, the U.S. Energy Information Administration ("EIA") reported today that U.S. gasoline prices in 2015 were the lowest since 2009 – averaging $.243 per gallon in 2015.