Oil Price Volatility Creates Uncertainty for Texas Jobs

AUSTIN (KXAN) — President Joe Biden announced last week that 15 million barrels would be released from the Strategic Petroleum Reserve in December. Since then, gas prices have fallen slightly in Texas and across the country.

But the continued uncertainty fueled by the war in Ukraine and the risk of recession makes it difficult to predict the next price direction.

Todd Staples, president of the Texas Oil & Gas Association, sat down with KXAN to share his thoughts on what gas prices and jobs could look like for Texans in the near future.

“We really need to protect consumers, we really, really need a home energy plan and unleashing American energy leadership,” Staples said.

The American Petroleum Institute reported that there are approximately 4.5 million barrels of oil accumulated, which is why Texans are currently seeing a reduction in oil prices.

“I think we’re always going to have volatility, until we figure out if we want to be energy independent, we want to be energy secure, and we want to encourage jobs, growth and production right here. to America,” Staples said.

The current oil climate has affected the energy sector and jobs in Texas.

“It creates uncertainty and you have investment pressures, you have supply chain issues and labor issues which all impact the ability to produce more. And so we really need to have some certainty here. And I think when you have that, you’ll see American companies developing a long-term investment plan. said Staples.

The federal Energy Information Administration is monitoring the near-term outlook for the price of West Texas Intermediate crude. And at the moment it is difficult to predict this value.

The Administration’s forecast for January predicts that a barrel could sell for as low as $52 – or as high as $132. The ongoing war in Ukraine could push prices higher, while the risk of a global recession could drive prices down.

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