Gasoline Prices & the Economy

CNN has a handy timeline of gas prices when adjusted for inflation since 1945.

The 1986 entry hits home for me:
Saudi Arabia removes caps on production, crude price plummets.

My hometown was at the time (and still is) home to a major oil field in Mississippi. It was one of the top three fields in the state and arguably the number one field.

My hometown was much, much busier though before Saudi Arabia removed the caps on production. With production caps removed, oil exploration in Mississippi became less cost-effective. Now the price of gas is again at a point where some twenty-five years ago oil exploration in Mississippi was cost-effective.

I don't know if exploration will increase in Mississippi, perhaps not. It might be something to consider though.