OPEC agreement could mean higher gas prices

In this Thursday, July 16, 2015 photo, a customer re-fuels her car at a Costco in Robinson Township, Pa. The national average price of gasoline this Labor Day weekend will be its lowest at this time of year since 2004, a result of low oil prices and a quiet hurricane season that has allowed refineries to churn out gasoline and diesel. (AP Photo/Gene J. Puskar)

WICHITA, Kan. (KSNW) – Earlier this week, OPEC agreed to cut oil production worldwide, saying January 1st, they’ll cut at million barrels each day for the next six months. Still, there are questions about the impact that it could have.

For the past two years, production has been down in Kansas—last year, down 14%, the year before, down 8%.

“The markets been so volatile,” said Alan Banta with KIOGA. “This year, we’re drilled three wells so far and that’s compared to in 2013, we drilled over 30.”

Lowered production worldwide could increase prices, encouraging more drilling in Kansas, but Banta says don’t expect anything drastic out of your pocket or from the companies.

“It won’t go back to where it was and you won’t seem employment go back to where it was you know we’ve lost over 6,000 direct and indirect jobs in the oil business in Kansas since the price crashed over these last two years,” said Banta.

As far as the impact it will have on your wallet, you’ll feel it, but nowhere near as bad as it has been in the past.

“There’s a lot of gasoline in inventory still, and the fact is a $5 or $7 increase in crude oil probably translates to a 25 cent increase in gasoline so we’re not going back to $4 gas prices or something like that.”