Trending
WARREN -- Americans are expected to travel in record numbers over the year-end holiday season despite this year's increased gas prices.
Some 107.3 million people, according to AAA projections, will travel between Saturday and Jan. 1, marking a 3.1 percent increase when compared to last year and the highest year-end travel volume on record.
Chris Ventura, midwest director of Consumer Energy Alliance, said many Americans -- especially those living in Ohio -- are more relaxed about traveling than they have been in the past because they have seen their overall fuel expenses drop. He attributes the trend, in part, to an abundant supply of natural gas from the Marcellus and Utica shale formations in Ohio, Pennsylvania and West Virginia.
"Even though gas prices do seem a bit higher than last year, on average, an Ohio family is spending less in its take home pay for gas this year than in the past," Ventura said. "And when you compare that to what we were paying, say a few years ago, we're still paying a lot less now than we did when gas prices were reaching near or even over the $4 mark."
On Friday, consumers in the Warren-Youngstown area paid, on average, $2.28 for a gallon of regular gasoline. That's down from the $2.31 it was the prior week and the $2.51 it was a month ago. It was $2.16 the same day last year.
Statewide, the average on Friday was $2.30 a gallon versus $2.37 the prior week, $2.60 a month ago and $2.18 the same time in 2016. That compares to national averages of $2.45 Friday; $2.47 the prior week Friday; $2,56 the same day in November; and $2.23 the same time last year.
Ventura, who is based in Columbus, said that despite the year-over-year increase, in general, Ohioans have been paying less for fuel than their counterparts across the country. Overall, the average family in Ohio has saved about $550 on energy costs annually the past several years. Added into those savings are drops in home heating expenses.
"We have the lowest natural gas prices for home heating in the country," Ventura said. "This gives people more disposable money from their take home portion of their pays. They are more confident and more comfortable with spending in areas like traveling."
Ventura said when combining production in the three states "for their output of gas alone" would make them, if they were a country of their own, the third largest producer of gas in the world.
"That's amazing when you look back 10 years ago. We weren't doing anything at all then," he said.
Neil Durbin, spokesman for Dominion Energy Ohio, described the development of Ohio's shale energy resources as a game changer for the company and the energy industry in general.
"Abundant supplies of natural gas from the Marcellus and Utica shale formations in Ohio are ensuring that Dominion Energy Ohio customers can set their thermostats with confidence this winter heating season, at prices that among the lowest in the United States," he said.
"In the past, when overall national market demand for natural gas increased … without a corresponding increase in production, prices rose sharply."
But the arrival of large quantities of Ohio shale natural gas has helped reduce prices, for example, for Dominion's Standard Choice Offer customers with rates this month 3.4 percent lower than this time last year, per thousand cubic feet.
AAA's Bill Sutherland said a strong economy and growing confidence has fueled consumer spending and contributed to travel trends. This year marks the ninth in a row with rising year-end holiday travel, AAA leaders said. And since 2005, total year-end holiday travel volume has grown by 21.6 million, an increase of more than 25 percent, the auto club reported.
"More expensive gas prices are not swaying holiday revelers to stay home," Sutherland said. "In fact, across the board this year, travel has increased year-over-year for every major holiday weekend -- Memorial Day, Independence Day, Thanksgiving -- and we project the same for the year-end holiday period. We've seen the strong economy and growing consumer confidence fuel holiday travel all year long."
Ventura said it's likely gas prices will fluctuate statewide, trending lower the remainder of the year but picking up again in 2018. "Overall, it's been a pretty good year with oil and natural gas production in the U.S. Part of that is led by Utica and Marcellus shale play in our region. The shale play taking place in Ohio, West Virginia and Pennsylvania is impacting energy costs statewide and locally," he said.
Gas production has been keeping prices low for businesses as well as individuals and families, Ventura said.
"When you look at fuel as a general category we've been very blessed with the resources we've been given here in this region. It helps all of us with lower gas and heating bills," he said.
vshank@tribtoday.com