Positive signs for oilfield as gas prices inch up

Oil Industry

TYLER, Texas (KLTV) - The average price for a gallon of gasoline in East Texas is now ranging in the upper dollar-eighties, and is expected to go higher with traditional summer travel, good news for those who work in the East Texas oilfield.

It started earlier this year with over production, a glut of oil world-wide, dropping oil by the barrel to historic lows with oil prices plunging below zero for the first time ever.

"Saudi Arabia and Russia were locked in a vicious price war that was driving prices down right when demand collapsed in the global pandemic," said Letourneau university professor Dr. John Barrett Ph. D in an April interview.

Then the pandemic stopped people from traveling.

“Our oil and gas industry is a vital part of the economy around here and the nation,” said Mike Clements of ‘Energy Weldfab’ in Gregg county.

But now the price at the pumps is rising and reason for oilfield supply companies like 'Energy Weldfab', to be cautiously optimistic.

"Well it's slow coming up some. Price of oil , natural gas. I think not a rapid increase, it's going to be slow and deliberate," Clements says.

And summertime means traditional increased travel. More demand for fuel, and that means an uptick in oil prices.

And with more demand, there will be more exploration, the price of oil will rise, and more oilfield workers back to work.

But the oilfield always has ups and downs and production will always be a wildcard.

so optimistic, but still cautious.

"It's looking a lot better than it was, but considering the things we were dealt, it's pretty positive right now," says Clements.

According to ‘AAA state gas price averages’, the average price for a gallon of regular in Texas is a dollar-88 per gallon.

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