Gas prices drop to below $2 per gallon in 9 states, and Trump says it's ‘bigger than a tax cut.' Is your state covered?

Core Insights - Trump's "drill baby drill" policy is facing challenges, with oil production growth slower than under President Biden and a decrease in the number of oil rigs since Trump's inauguration [1][6] - The recent decline in gas prices is attributed more to global supply dynamics, particularly OPEC's production decisions, rather than domestic policies [1][2] - The national average price for regular gas has not been below $2 per gallon since May 2020, despite recent claims of price drops [3][4] Oil Production and Rig Count - At the time of Trump's inauguration, there were 582 oil and natural gas rigs in operation, which decreased to 538 by August [6] - Some analysts note that more oil is being produced with fewer rigs, but this has led to significant layoffs in major oil and gas companies due to falling prices [6] Gas Price Trends - The White House reported that average gas prices have fallen below $3 per gallon in 40 states, with prices under $2.75 in 24 states and below $2.50 in nine states [2] - Gas prices hitting $2 per gallon at some stations in states like Kansas, Oklahoma, Texas, and Colorado were highlighted by the White House [4] Economic Impact of Gas Prices - Historical data from JPMorgan indicates that when gas prices fell to an average of $2.12 per gallon in 2015, consumers redirected 80% of their savings to other expenditures [8] - The Consumer Price Index (CPI) showed a year-over-year increase in overall energy prices, suggesting that the economic boost from lower gas prices may not be replicated [9] Future Projections - A Deloitte report indicates that U.S. oil and gas projects may face rising costs and delays due to Trump's fluctuating tariff policies, potentially impacting gas prices [7] - Trump's prediction of gas prices falling below $2 may be unrealistic given current market conditions and economic indicators [7]