Oil prices have gone down by more than half since a high of $106 a barrel in June. The current situation in which the motorists are having the gift of cheap gasoline but the energy markets which rely on oil tax revenue is in deep crisis. The situation is not going to change much as producers in US and the world continue to pump more oil despite the glut.
Benchmark crude prices in the US has fallen to $45 a barrel Federal forecasters do not expect much and estimate that the price will settle around $55 a barrel as global oil inventories continue to grow and will keep the price of oil low.
By 2016 , the drilling will slow down because of low oil prices and the price per barrel will settle somewhere around $71. Petroleum demand will increase in US and China but it will be far lower than in the past few years when $100 a barrel looked quite normal.