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East Texas oil recruiter says gas prices will continue to rise

“That loss in production is resulting in a squeeze on prices because the demand is rising and supply will take time to deal with,” LaFlure said
Published: Nov. 16, 2021 at 6:52 PM CST|Updated: Nov. 16, 2021 at 7:28 PM CST
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TYLER, Texas (KLTV) - According to AAA, the current average price of unleaded regular gas in Texas is up $0.10 from October and California reached the highest record average price of regular unleaded gas on Tuesday, $4.68.

Co-principal of Brelsford Personnel Gates Brelsford has worked in the oil industry field for more than 40 years. He said one factor to the rise in gas prices stems from the supply and demand from the pandemic.

“The second is government incentives and taxes on the industry and regulations,” Brelsford said.

Director of Oil Technology Group Ernest LaFlure said oil production peaked in 2019 at 13 million barrels per day in the US, “Which is the highest level it had been since the early 70′s and we were essentially energy independent,” LaFlure said.

Now, he said there is a 15% reduction in oil production.

“That loss in production is resulting in a squeeze on prices because the demand is rising and supply will take time to deal with,” LaFlure said.

LaFlure said the pandemic in addition to policy changes is why the increase is so drastic. “We’ve never seen that (the pandemic) coupled with such an aggressive policy changes by the federal government at the same time when recovery is needed,” LaFLure said.

“It’s going to take time because we’ve had over 15% reduction,” LaFlure said. “Probably see some increased prices for the next quarter or two and then it should stabilize.”

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