Low Gas Prices Have Downside

Motorists in Michigan enjoying this weekend are all smiles when it comes to the price of gas, due to the lower per-barrel price of oil.

But a downside could be looming, according to Patrick DeHaan of gasbuddy.com.

He says if the per barrel price continues to drop, it could mean less exploration and that, in the long run, will cause a shortage and thus lead to higher gas prices.

He says oil companies are already cutting capital investment and expenditures.

While the price has been above 40 dollars per barrel, he says Michigan is getting in to a danger zone of sorts where being in oil is no longer lucrative for oil companies to spend billions of dollars on new sources.