Gas prices will decrease if supply and demand work inversely to eachother.
Just because supply increase does not mean prices will lower, just as a decrease in demand will lower prices. In Economics 101 it works this way, but not in Economics Reality.
For the price to lower, supply has to increase and demand must stay constant or decrease, creating excess supply. To simply make oil refining more effective will not work. If supply rose such that price reduced to $1.00 per gallon, our demand would increase to bid the price back up UNLESS they were so **** good the refineries could outpace any possible increase in demand. We must pair effeciencies, competition, etc with entrants, regulations, etc.
What you should try to explain that on it's own increasing supply or decreasing demand won't work. They tend to work in parity with each other until the point where the marginal value is zero. (Even if gas was .25, how much more would you really buy...me maybe 10 more gallons a month)
Demand for fuel is rather inelastic (How much does price affect the qty you buy), but increasing supply can be done a number of ways....
Remember, what we are actually demanding is a substance to make our cars move. We do not actually demand gasoline. It is merely a cheap way to achieve that goal.
1st we must create incentives to create alternatives. Because of various statutes, the American government can directly compete with private industry. But we can give tax breaks. Some call it corporate welfare but we create economic incentives all the time to acheive social policy.
Just as we auctioned off sulfer contracts, we can auction off fuel effeciency stanards.
