More Good News For Gas Prices

Fox News reports that a new discovery of oil in the Gulf of Mexico has already started to affect gas prices positively.

Tests of a deep-water well in the Gulf of Mexico could indicate a significant oil discovery, three companies announced Tuesday, in the first project to tap into a region that reportedly could boost U.S. oil and gas reserves by as much as 50 percent.

The Wall Street Journal reported Monday that the region where the well is located could become the nation’s biggest new domestic source of oil since the discovery of Alaska’s North Slope more than a generation ago.

The Journal said Chevron and Devon officials estimate that recent discoveries in the Gulf of Mexico’s lower-tertiary formations hold up to 15 billion barrels’ worth of oil and gas reserves, a total that would boost the nation’s current reserves by 50 percent.
The story linked above did not include the reference to gas prices beginning to drop already as a result of the news. I heard one of the Fox News business reporters say that on television a few minutes ago, but did not see it posted at the website yet.

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