Why Gas Prices Might Remain High In Texas

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Gas in Texas is currently $4.21 a gallon on average. Unfortunately, it's unlikely that these prices will go down any time soon.

The spike in gas prices has been directly affected by the price of oil, according to WKYC. At least 59% of the price of gas comes from oil, which have been high globally.

To solve this problem, the oil industry needs to increase supply, which would therefore bring down the price. That's easier said than done, though. Right now, the cost of finding and developing oil is at its highest point since the Federal Reserve Bank of Dallas began asking these oil and gas producers, exploration firms and oilfield services firms, WKYC reported. A shortage of equipment and available workers is also hindering the oil industry's plan to meet this surging demand.

About 59% of energy industry executives "believe investor pressure to maintain capital discipline is the primary reason that publicly traded oil producers are restraining growth despite high oil prices." Less than 5% of big companies told the Federal Reserve Bank of Dallas they plan to not increase production at all or to increase production slightly. Smaller oil companies plan to ramp of production by 10-30%.

Oil executives estimated the price of oil by the end of the year would be $93.26, which is about 10% less from the time they were surveyed at the end of March.

Need to fill up? Here's the best day of the week to buy gas in Texas.

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