Crude oil was back up to $70 a barrel Wednesday, confirming even fears of the Delta variant won't bring gas prices down anytime soon.
Jay Young, founder of King Operating in North Texas, says it's simple: gas prices have risen sharply as the economy emerges from the COVID lockdowns, but producers have been slow to resume drilling.
“We're not drilling as many wells as we were in the past and because of that it takes the supply off the market,” he says.
And the push to go green could keep gas prices in the $3 or more range.
“As we go greener in the future and we don't have the companies drilling for oil and gas, I'm sorry but you're going to be paying more at the pumps,” says Young.
“Oil and gas companies will do very, very well. Our investors will get multi-revenue checks that will double or triple because the price of oil is going to go up,” he added. “But for the average consumer that's going to the gas pump and they're looking to put $30 worth of gas in my vehicle, that's over.”
GasBuddy puts the statewide average for regular at $2.85 a gallon. The nationwide average is $3.15.