Texas oil production continues during ongoing Iran conflict

TEXAS — Oil producers in Texas are monitoring the conflict with Iran and the Strait of Hormuz as oil barrel prices continue to climb. In the meantime, an expert says it’s business as usual for Texas oil companies as they await the outcome of the ongoing war.

Texas is the largest oil-producing state in the country, and Rey “R.T.” Trevino, the vice president of operations at Fort Worth-based Pecos Country Energy, says his crews are hard at work.

“Right now, here in Texas, it is steady as she goes. Produce baby produce, and drill baby drill,” said Trevino.

The price of oil has reached more than $100 a barrel as the war continues, and while the high cost is affecting Texans at the gas pump, Trevino said it is benefitting oil producers.

“We will see a little bit of a boom, meaning we’ll see some more jobs. We’ll see the production go up,” he said, adding that Pecos has walked a fine line between oil booms and drops since its operations started in the mid-1980s.

Trevino said the uncertainty in oil barrel prices creates a global ripple. 

“We need to stay steady the course, so that we don’t overproduce to then crash the oil, and we don’t need to overproduce, so that oil prices go up,” he said, explaining how plans to break ground on the America First Refining complex in Brownsville in April is a big sign of that steady course.

The complex is the country’s first new refinery in 50 years, which Trevino says will add thousands of construction and facility jobs.

“We’re gonna be able to build a pipeline straight from the Permian Basin in West Texas to this refinery, and this refinery will produce or facilitate sweet Texas crude oil,” Trevino said.

While he says the high price of oil benefits the Texas oil industry, he says in the long run it will be bad for the U.S. economy if it continues to climb.

“Some people are talking about $150 to $200 a barrel. Those are not sustainable,” he said. “Nobody’s gonna be open for business if we get to $200 oil.”

Trevino recommends Texas consumers fill up their gas tanks on Wednesdays, when prices are lower than average. As for oil producers, the work continues.

 “A lot of oil and gas operators, and more important, producers like Pecos, are standing pat. Whatever drilling ventures we have for this year, and really I mean really programs, we are still staying on schedule,” he said.