West Texas oil drilling surge amid Iran tensions
by Jolyon: Mario Nawfal
Oil drillers in West Texas are seeing a surge in business as geopolitical tensions with Iran rattle energy markets. A contractor near Lubbock reports they are busier than at any point since 2020. Producers say the ideal price range is $70 to $90 per barrel,enough to incentivize drilling without oversupplying the market.
Transcript (en)
Well, with so much focus on oil and Iran, we wanted to actually hear from the people on the front line of America's energy industry. So we headed to West Texas. We spoke to oil men who are paying really close attention to what's going on in Iran and the Strait of Hormuz and what it could mean for drilling activity here at home. Now, they give us a tour of an active drilling rig outside of Lubbock. If it looks familiar, it was featured in the hit series Landman. Drilling contractor Cole Green says tensions in the Middle East have already led to more calls than ever about drilling. We're drilling more than we have probably since 2020, so it's progressively gotten more busy. This is exactly what we're doing, drill baby drill. But more drilling doesn't necessarily mean oil men are rooting for higher prices. Independent producer Cactus Schroeder says there's a sweet spot, High enough for producers to stay profitable, but low enough that Americans aren't feeling pain at the pump. I would say more between 70 and 90. You know, that would be, you know, we can all make money at that. And then when it gets over 90 or $100 a barrel, the American consumer suffers. Texas produces more than 40 percent of America's crude oil. These West Texas oil men say record U.S. oil production has left America far less vulnerable to disruptions overseas. If we had started this war with Iran 15 years ago, it would have been much worse. You'd see oil prices at $400, $500, $600 a barrel. I mean, it would have been absolutely crazy. So having the domestic production that we have is pretty amazing. We're producing more oil now than we ever have. I think that needs to continue. I think we need to be dominant in the industry. And they say the biggest challenge right now is just uncertainty so they could hire, invest, and plan for the future.
