MIDLAND, Texas — The price of gasoline just keeps getting higher.
As of Wednesday, the national average was sitting at $4.25. So, what is causing the surge?
Stephen Robertson, Executive Vice President of the Permian Basin Petroleum Association, explained that gasoline is made by the refinement of crude oil. As the base ingredient, when crude oil goes up, so will the price of production. This drives up the overall cost.
"When that base production goes up in cost, gasoline prices are going to go up in cost," said Robertson. "As we have seen the future's market trade higher and higher for crude oil, we're seeing gasoline at the pump go higher and higher as well."
Robertson said another major factor causing the gas prices to go up is supply and demand.
"When you look at the entire world portfolio of crude oil, a big part of that comes from Russia," said Robertson. "As you're taking that out of the market, all of the sudden, you are greatly throwing into flux supply and demand, and that is going to cause prices to go into flux as well."
Robertson told NewsWest 9 there is some positive news for West Texas after all.
"That is so fantastic about the Permian Basin is not just the resources below the ground, but the resources above the ground," said Robertson. "The human resources we have to take advantage of the natural resources that exist. If we don't have people, we cannot take advantage of those resources, and we need those people for job opportunities and growth for so many of the sectors out here."
Robertson said it is unclear when gas prices will drop. He does believe that if more people do come to work in the oil and gas industry, the benefits will be greater if they stay to create an ongoing workforce for our region.