INDIANAPOLIS (WISH) – Texas winter weather and blackouts will hit Hoosiers in the days, weeks, and months to come.
Gas prices are rising across the country and could reach $ 3 a gallon. That’s a prize we haven’t seen since 2014, thanks to a strange concoction of vaccines, economic optimism, and a wintry mix in the deep south.
Texas is the country’s largest producer of crude oil and natural gas. According to the US Energy Information Administration, there are 30 refineries in the state. Snow and cold temperatures forced some of the largest refineries to shut down Monday and Tuesday, affecting up to 3 million barrels of oil daily after the oil industry cut production due to the pandemic.
You have probably noticed that the price on the pump has gone up lately. According to GasBuddy, the national average is just over $ 2.50 per gallon. This is the highest level since last January.
Typically, prices go up 25 to 65 cents a gallon from late winter through Memorial Day. If you do the math, we’ll knock on the door for $ 3 a gallon and maybe walk right through the door.
This is a big reversal from a year ago when the price on the pump dropped when people stayed home at the start of the pandemic. And while the winter weather is keeping people at home in the US this week, and that will curb demand a bit, the energy crisis sparked by the polar explosion has shown no sign of easing. Gulf refineries can take weeks to come back online, even after power is restored and pipes are no longer frozen.
The trickle-down effect of this weather not only makes your commuting more expensive, but natural gas futures soared nearly 8% this week, which could also translate into higher utility bills.