Gas Prices Good for the Consumer, Oil Prices Not So Good for Producers
It’s a double edged sword, but if you’re the consumer, you just cannot get enough of the falling price at the gas pump.
Across Wichita Falls, prices are down nearly $1.20 from just one year ago. The state wide average is at $1.96 with some area gas stations at under $1.95 per gallon.
Diesel prices continue to hold the line at around $2.16 per gallon. EPA mandates on Sulphur content in diesel emissions began driving prices up years ago. The rapid increase in oil prices in 2008 forced diesel at one point over $5 per gallon mark in some markets for a short time.
The story is a bit different for energy producers and those who look forward to a royalty check each month.
Oil prices have bounced from a 52-week high of $99.26 to a 52-week low of $43.37. Oil was at around $45 per barrel for much of the past week. While experts differ on just where the bottom for oil may be, the Texas oil patch has already made deep cuts in production and personnel. Most experts see oil rebounding in 2016, but it’s doubtful that it will return to $100 per barrel anytime soon.