Energy

Analyst: MT gas prices will stay low compared to US average

Posted: Feb 16, 2012 7:44 AM by David Jay
Updated: Feb 16, 2012 7:44 AM

BILLINGS - Montana drivers have been enjoying some of the lowest gas prices in the country and petroleum industry analyst Bob van der Valk of Terry says it's likely to stay that way for the rest of the year and beyond.

Gasoline prices in Montana have gone up around two cents a gallon in the last month, while prices have risen 21 cents in other areas of the country.

Van der Valk, a man with 52 years with experience in the industry, says the low prices are due to being close to the Bakken.

Automotive group AAA reports the average price in the country at $3.52 a gallon for regular unleaded, but in Montana that price is $3.07.

"We're enjoying he benefits of being an oil rich state," van der Valk said. "Memorial Day, it may to $3.10, $3.15 and by July 4th, $3.25. That's where we're going to stay. By the end of the year we'll be down probably under three bucks."

Van der Valk says Wyoming, Idaho, Colorado and Utah are also benefiting from the Bakken. He says the Chicago area is also getting lower prices because of being close to Canadian oil shale fields.