Gas prices all over the country have risen to an alarming rate for U.S. citizens. The U.S. Energy and Information Administration (EIA) reported that since 2014, this November marked the highest gas prices have been.
Last year, the average gas price per gallon across the United States was $2.18. This past November, the U.S. average rose to $3.39 a gallon.
Although gas prices in Texas are below the national average, it’s still well above last year’s prices for gasoline in the state.
FOX 4 News shared that driver Miguel Jimenez stated, “If [my tank is] empty, it would probably take $80, so it hurts, it’s a little bit too much.”
Bud Weinstein, a former SMU economist, said, “Domestic production has increased” and “output in West Texas is at pre-pandemic levels,” which should, in turn, allow for gas prices to drop.
“The Environmental Protection Agency announced lower levels of ethanol requirements to be blended into gasoline. Now that’s also going to help bring prices down a bit because ethanol prices have skyrocketed,” Weinstein shared.
The Acting Administrator for EIA Steve Nalley stated, “This is a very complicated environment for the entire energy sector,” and continued with, “Our forecasts for petroleum and other energy prices, consumption, and production could change significantly as we learn more about how responses to the Omicron variant could affect oil demand and the broader economy.”
Speaking of the Omicron variant, the EIA mentioned possible risks that the new variant could dent “global consumption of energy and expectations for stronger supply from OPEC+, U.S. shale oil companies, and other major producers.” OPEC is the Organization of the Petroleum Exporting Countries.
According to USA Today, “The EIA expects prices to continue to drop, forecasting the annual, national average to be $2.88 per gallon in 2022.” The EIA is also projecting that each day in 2022, domestic oil producers will pump 11.8 million barrels.