Gas on the rise: 'No end in sight' for record-high pump prices, energy expert warns

The Schork Group principal argues the likelihood of $6 gas is 'very real'

The Schork Group principal Stephen Schork argued on Tuesday that the probability of $6 gas is "very real" and warned that "there is no end in sight right now" for soaring gas prices

Schork made the argument on "Varney & Co." as gas prices continue to hit new record highs.

On Tuesday, the national average for a gallon of gas hit a fresh record of $4.91, which is nearly 30 cents higher than the week before and 61 cents higher than the prior month, according to AAA.

The association noted that 14 states currently have an average of over $5 for a gallon of gas. 

A TIMELINE OF BIDEN'S ACTIONS ON OIL AND GAS REVEAL WHERE HIS PRIORITIES ARE

On Tuesday afternoon, oil prices traded higher with Brent crude futures for August rising about 1% to $120 a barrel and U.S. West Texas Intermediate crude futures for July delivery gaining about .89% to around $119 a barrel.

Ticker Security Last Change Change %
USO UNITED STATES OIL FUND L.P. 81.24 +2.23 +2.82%
BNO UNITED STS BRENT OIL FD LP UNIT 32.65 +0.89 +2.79%

Schork pointed on Tuesday to "economics axiom" that "high prices are the cure for high prices."

"But it is based on the fact that if you make prices high enough, you are going to increase production, you are going to give the incentive to bring more supply to the market," he explained. 

"Unfortunately, with the message that we’ve been getting from this White House and from Wall Street over the past two years, investment is not going into future production; so, therefore, we’re unable to bring that production to meet these high prices, so there really is no end in sight right now."

gas prices on the rise

Energy expert Stephen Schork provides insight into how high gas prices will get as they continue to hit records. (iStock / iStock)

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In a series of orders aimed at combating climate change, President Biden canceled the Keystone XL oil pipeline on his first day in office and temporarily suspended the issuance of oil and gas permits on federal lands and waters. 

The administration resumed the new leasing last month following court challenges against the ban and is appealing a ruling in which Judge James Cain, a Trump appointee, struck down the ban. 

Schork pointed to Tuesday’s oil prices being around $120 a barrel, noting that "by the 4th of July, what this translates into is the national average upwards of about $5.30 at the pump."

He also noted $147.27 "is the all-time high price for WTI crude oil that we set in 2008" and that "the probability that we get there by the 4th of July holiday … is 14%."

"The probability we get there between now and Labor Day is 23% so there’s a very real possibility we’ll see oil upwards of $150 a barrel," Schork continued, noting that it would translate to a national average gasoline price of $6 a gallon. 

During a speech last month, Biden said that the U.S. has "made enormous strides" in recovering its economy — and credited his own policies — while he blamed inflation and record-high gas prices on the coronavirus pandemic and Russian President Vladimir Putin.

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"I want every American to know that I’m taking inflation very seriously and it’s my top domestic priority," Biden said at the White House on May 7.

FOX Business’ Lawrence Richard contributed to this report.