Oil prices tip favorable for consumers, hurt producers

While consumers are enjoying low prices at the pump, producers are struggling with the low prices of oil and natural gas.As of Friday, the average for gas prices in the Youngstown-Warren area was $2.90 per gallon, 7 cents cheaper than the national average, according to AAA Daily Fuel Gauge Report.According to a report from ICF International, hydraulic fracturing and horizontal drilling practices have been credited with keeping U.S. petroleum products down between 29 and 94 cents per gallon for U.S. consumers.Crude oil prices, however, have declined from $105 at the beginning of September to $85 at the end of October, causing some speculation over its impact on the production in the shale plays.That’s because it’s expensive to not only produce the oil in those regions but also replace it because it’s a depleting resource, said Tom Stewart, executive vice president of the Ohio Oil and Gas Association. The finding costs for a barrel of oil is between $75 and $80, he said.

via Youngstown News, Oil prices tip favorable for consumers, hurt producers.

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