Consumers are getting a break at the pump to kick off the year in 2026. According to forecasters at Gas Buddy, this is the first time since 2020, where Americans have had gas prices below $3 dollars/gallon. “It’s very exciting for all American consumers. Anytime we can lower the price of gasoline- we have that extra income to go on vacation, and with more people traveling using the car- all the little towns can benefit from the extra tourist income. It’s a true trickle-down effect and economic boost.” Energy expert, Rey Trevino said.
Trevino says the United States produces 14 million barrels of oil a day, with Texas producing 7 million barrels. “We are getting more efficient. What would take us maybe 4 wells to produce is now taking us 2 wells. That really keeps us 100 percent with OPEC- which is a combination of about 12 countries around the world.” He said.
As consumers save on costs at the pump, the cost of electricity and heating remains high by 30 percent in the last 3 years Trevino said. The energy expert says we need to improve the infrastructure in the northeast. He says residents in this part of the country heat their homes through heating oil or burning diesel. “We don’t have enough pipelines that can take the abundant amount of natural gas that Texas has to get up there and get them a clean, burning energy.” He said. The improved infrastructure will lower the costs for consumers. In addition, he says the Northwest needs more refineries- more pipelines and electricity lines.
“We have a 100-year-old infrastructure that’s built on oil, coal, natural gas, a little bit of nuclear, and a very tiny amount of wind and solar. We literally need to do a revamp of our infrastructure starting with natural gas to carry us for the next 200 years.” Trevino said.
He projects the cost of oil by the barrel will land between $60 and $65/barrel in 2026; that's $1.97-$2.00 a gallon.
As gas prices remain low, he says the only concern is that oil and gas workers will lose jobs. “We hope the United States continues the upkeep and maintenance will continue to provide these good paying American jobs in the oil and gas industry.” Trevino said.
Regarding the Venezuela oil, he says it was being sent to China and Russia for payment, along with other countries in that loop. The sanctioned oil that was seized on the tankers was not being accounted as part of the global supply and they were only supposed to sell a certain amount of oil.
President Trump announced Friday that American energy companies have agreed to spend $100 billion to rebuild Venezuela's tattered oil infrastructure and that Caracas has agreed to let the U.S. "immediately" begin refining and selling up to 50 million barrels of crude oil.
"We're open for business," Trump said on Newsmax, following a meeting with executives from 14 oil companies at the White House.
"China can buy all the oil they want from us (in Venezuela) or in the United States." Trump said.