Do you remember when Saddam Hussein was captured, when the space shuttle Columbia disintegrated on re-entry, and when Finding Nemo was the biggest movie of the year? Here’s a hint—it was the last time gas prices were this low. It’s been almost eleven years since we’ve seen gas prices like this at the pump in some states and even though it’s easy to swallow for consumers . . . some investors have a lump in their throat.
Today we interviewed Wes Perry on MoneyWise. Wes is the former mayor of Midland, Texas , and he’s spent a majority of his career in the gas and oil business. Wes is a very close friend and serves on the Compass Texas team.
Several years ago when the price of a barrel of oil was close to $130, I asked Wes if he thought the price of oil would rise to $140 a barrel or sink to $40 a barrel. He answered, “Yes! We’ll probably see both of those prices.”
Wes went on to share with our audience that lower oil and gas prices are all about supply and demand. The world uses about 93 million barrels of oil a day, and its producing 95 million barrels. That 2 million barrel daily surplus is pushing the price down.
It’s estimated that Americans saved close to $14 BILLION at the pump in 2014 and that the average American family will save around $750 this year in gas costs. As Wes reminded us, we should treat this as a gift. So use this gift as an opportunity to get your finances in better shape by giving more, saving more, and by paying off debt as quickly as possible.