In Texas, gas prices should be trend lower and be fairly steady in 2014, thanks to the state’s oil and gas infrastructure, a Gasbuddy.com analyst said Friday.
Nationally, the national average price of gas could fall below $3.40 per gallon next year for the first time since 2010, according to a Gasbuddy report.
While gas prices next year could see “dramatic price spikes and equally dramatic price plunges,” Gasbuddy analysts said that in general the U.S. should see “more temperate” prices than in the past three years. The reason: the boom in shale oil production has pushed overall U.S. crude oil production to its highest level since 1989, make the nation less dependent on foreign oil suppliers, according to the Gasbuddy report.
For Texas and other Gulf Coast and southeastern states, the report predicts a “mixed bag” on gas prices in 2014. “Without the intrusion of weather, Gulf Coast states from Texas through Virginia should see world class refineries supply some of the cheapest wholesale gasoline in the world,” the report said. But weather issues, such as a hurricane, “could lead to brief, but spectacular price spikes,” for the region, according to the report.
Overall in 2014, gas prices in Texas should trend lower “thanks to domestic production,” and — except for an extreme weather event — should be relatively stable, Patrick DeHaan, senior petroleum analyst at GasBuddy, said Friday.
“It should be better in 2014; prices should be lower thanks to domestic production,” DeHaan said. “By and large, Texas should one of the quieter stories in 2014. Other states are probably envious of what you see in Texas. Not only that, but relative stability in prices should continue.”
“A lot of issues are mitigated by the fact that you’re in the middle of all those oil rigs and refineries. Texas has it all; it’s the energy mecca of the country,” DeHaan said. “You guys are smack-dab in the middle of where the petroleum infrastructure exists. You can’t get much better than that.”
As of Friday, the state average price per gallon in Texas was $3.09, according to Gasbuddy, while the average price per gallon in the Austin metro area was $3.11.
The Great Lakes, Great Plains and Rocky Mountain regions are likely to see the steadiest decline in gas prices in 2014, the Gasbuddy report said.