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Gas prices expected to climb for near future

COLORADO SPRINGS, Colo. (KRDO) -- It's hard not to take notice: gas prices are up in Colorado and across the country, and those prices may not have reached their peak.

“If production levels stay roughly where they are at, I think you will see the price continue to increase," says Donnie Wisenbaker, the CEO of Pike Peak Energy in Colorado Springs.

At this time last year, gas was less than two dollars a gallon, averaging around $1.61 in Colorado Springs according to gasbuddy.com. Now in June 2021, prices have jumped up to $3.09.

Wisenbaker says a rise is common for the summer months, saying, “From Memorial Day to Labor Day typically you always see a little higher gas prices."

However, there are other unique factors that have caused this recent increase with oil prices playing the biggest role. Wisenbaker says, “As oil prices increase you see a correlation between that and gas prices."

The price of crude oil on the West Texas Intermediate as of May 28, 2021, was $66.32 per barrel. Last May, the price for oil was down to $19.78 per barrel.

Oil production is another contributing factor. The pandemic caused oil companies to scale back production with many people staying home and not traveling. Wisenbaker says since then, production has started to ramp up but refineries are still cautious and don't want to find themselves with a lot of product on hand. From there, he says it becomes supply and demand economics.

“You curtail a little bit of production, you’re going to see that at the pump because there is less gas to go around," Wisenbaker says.

Wisenbaker also says the February freeze in Texas and the cyber attack on the Colonial Pipeline did play a small role in the increase, but it was mainly because it led to people panic buying and hoarding gas which he says was not necessary. “It’s toilet paper all over again," Wisenbaker. "There is plenty of fuel, if anything we had fuel surpluses.”

As for claims that President Joe Biden is another reason for the increase, Wisenbaker said, “In my experience, presidents don’t really have a lot of input on what happens."

Wisenbaker added that policies from the president may impact future prices, but nothing in regard to day-to-day impacts.

Chase Golightly

Chase is a reporter and an anchor for our weekend evening newscasts. Learn more about Chase here.

Comments

9 Comments

  1. “Now in June 2021, prices have jumped up to $3.09”
    .
    As usual, prices in Colorado are around 30¢ to 50¢ higher than many other places in the country. The joys of living at 6,000 feet ASL.

    1. They’re still lower than Cali or Hawaii. I still remember getting gas on Oahu at $4.359/gallon when stateside prices were closer to $3.70!

    2. California is at Sea Level and has refineries and their gas prices are higher than ours. So our altitude has nothing to do with it and we have a refinery in Denver.

  2. This is reflective of Democrat policies. It was expected if biden/harris were elected and it will only get worse. Fuel prices don’t affect those riding in armored limos, only workers like you and me.

  3. Really? Please? Stop trying to fool the public into thinking that Biden’s actions have very little impact on oil prices! Show us some real facts related to the effect since Biden shut down the construction of the Keystone Pipeline. Additionally, his lack of leadership in preventing OPEC from limiting production…I have to ask “WHY?”…WHY are you undermining the livelihood of ALL Americans, knowing good and well that the price of ALL products hinge on our dependency to petroleum products? We desperately need the news media to take the lead and start REPORTING the TRUTH!

  4. Amazing how the democrats pushed for a Russia collusion with President Trump for four years. Now, within Biden’s first 200 days, he’s already in bed with Russia by green lighting their pipeline while shutting ours down.

  5. “As for claims that President Joe Biden is another reason for the increase, Wisenbaker said, “In my experience, presidents don’t really have a lot of input on what happens.”
    .
    In other news…
    .
    “The Biden administration suspended oil and gas drilling leases within Alaska’s Arctic National Wildlife Refuge pending the outcome of an environmental impact review, officials said on Tuesday.”
    .
    Yeah… Biden = Gas Prices Going Up!!!

    1. This suspension has absolutely no impact on today’s prices, as it doesn’t impact current production. Any production from ANWR is still years away from fruition, even without this current delay. The following excerpt from an EIA analysis done in 2008 illustrates the delays that can be expected here:

      ” – 2 to 3 years to drill a single exploratory well. Exploratory wells are slower to drill because geophysical data are collected during drilling, e.g., rock cores and well logs. Typically, Alaska North Slope exploration wells take two full winter seasons to reach the desired depth.
      – 1 to 2 years to develop a production development plan and obtain BLM approval for that plan, if a commercial oil reservoir is discovered. Considerably more time could be required if the discovered oil reservoir is very deep, is filled with heavy oil, or is highly faulted. The petroleum company might have to collect more seismic data or drill delineation wells to confirm that the deposit is commercial.
      – 3 to 4 years to construct the feeder pipelines; to fabricate oil separation and treatment plants, and transport them up from the lower-48 States to the North Slope by ocean barge; construct drilling pads; drill to depth; and complete the wells.

      The 10-year timeline for developing ANWR petroleum resources assumes that there is no protracted legal battle in approving the BLM’s draft Environmental Impact Statement, the BLM’s approval to collect seismic data, or the BLM’s approval of a specific lease-development proposal.

      The Alaska North Slope Badami and Alpine oil fields are recent examples of how long it might take to develop new ANWR oil fields. Located near the western border of ANWR, on State lands, the Badami field was discovered in 1990 and went into production in 1998, thereby taking 8 years between the oil discovery and initial production. On the western border of the State lands, near the National Petroleum Reserve-Alaska, the Alpine field was discovered in 1994 and initial oil production occurred in 2000, thereby taking 6 years from discovery. These Alaska North Slope oil field development time delays do not include the time delays associated with BLM leasing, the collection and interpretation of seismic data, and the drilling of exploratory wells.”

      The link for this analysis is: https://www.eia.gov/analysis/requests/2008/anwr/methodology.html

      Bottom line – oil/gas prices won’t be affected (up or down) by ANWR production for many years to come.

  6. “In my experience, presidents don’t really have a lot of input on what happens.”
    He must not have very much experience. This is a historical fact of life. The current administration always has an affect on many markets prices. Stock market, oil prices etc.
    The part I see is where we were energy dependent and have transitioned to dependent and one of the biggest winners…… European and Asian energy companies. Specifically Ukraine and Russia for natural gas…… and Biden supports the finishing of a pipeline that directly delivers natural gas from Russia to Europe. The biggest winner is GAZPROM which is owned primarily by the Russian government. And you know Putin owns a part of it also personally.
    So why did they accuse Trump of being Putins puppet when that is exactly what Biden is doing??? Hmmmm

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