Will Gas Prices Continue To Benefit Tourism? [AUDIO]
The gas price picture continues to look rosy as the summer driving season approaches.
The average for a gallon in New Jersey right now is in the high $3.20's. It remains about 40 cents-per-gallon lower than the average in April of 2012.
Tom Kloza of Gasbuddy.com says a lot of the lower price dynamic comes from domestic oil shale production. And he cautions that production revolution is built on the back of crude prices and technology.
"And if the price drops too low, all of a sudden oil shale doesn't become attractive or profitable". Kloza says that could bring speculators into the picture who would then trade up the price of foreign crude oil and drive those gas prices higher.
Kloza says the lower pump prices will certainly give that much-needed shore tourism some help. He says there are always some cautions.
One of the usual ones this summer will be the hurricane season. Big storms here or in the Gulf of Mexico could alter the crude oil/gas price picture very rapidly.