Energy Experts Predict How High Gas Prices Could Go
Two of the state's leading energy experts joined KEEL News earlier this week to analyze the current state of the gas and oil industry in Louisiana and the effect the Biden administration's policies will have on prices in the near future.
Mike Moncla of the Louisiana Oil & Gas Association and Tyler Gray from Louisiana's Mid-Continent Gas and Oil Association both are concerned that Biden energy actions will be damaging to Louisiana's economy.
"November 2nd, if you look back at the chart, you can find oil at $37. It's now $67. Since the election we've had a $30 increase in the price of oil." Moncla says. "We had a previous administration that was all about energy independence, all about cheap fuel for our nation. Now we have a new administration that loathes our business, pushing us out and trying to push this green new deal.
"If the production of oil and gas goes down as the pandemic ends, summer driving happens, there's a supply and demand (problem) and when that happens, the price of gas is going to go up."
Gray, meanwhile, condemns the Biden move to ban oil lease sales in the Gulf. "You're going to need oil and gas no matter what, he says, "You're looking at a world demand of about a hundred million barrels...a day. I've already heard about Louisiana (energy) companies looking for contracts with other countries."
And both say the idea of $4 a gallon price for gasoline isn't far fetched. "I hate to predict, but I can tell you the more restrictions the harder it is to operate," Gray says. And Moncla? "I guess I wouldn't be surprised. It is a commodity. But that would be as high as I've ever seen it here."