Gas Prices Set to Drop Amid Surge in Domestic Oil Production

WATFORD CITY, ND - JULY 30: Pumpjacks are seen in an aerial view in the early morning hours of July 30, 2013 near Watford City, North Dakota. North Dakota has seen a boom in oil production thanks to new drilling techniques including horizontal drilling and hydraulic fracturing.  (National Journal)

New data released by the Energy Information Administration Wednesday project that as U.S. oil production soars, gas prices will drop, Fuel Fix reports.

A boom in domestic output of petroleum has translated into savings at the pump with the national average for a gallon of gas reaching a new low of $3.18 on Tuesday. A little more than a month ago, the national average came in at $3.38 per gallon. According to AAA, the current price is the lowest average on record since February 2011.

EIA data now indicate that this trend will continue, with the agency forecasting that average gas prices for the year will be 13 cents lower than 2012's average. The agency projects that this number will fall further in 2014, coming in at an average of $3.39 per gallon next year.