Texas Oil Production Hits Record Amid Iran War

West Texas Permian Basin output helps stabilize U.S. supply despite fewer drilling rigs

Apr. 10, 2026 at 3:34pm

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An abstract geometric illustration composed of overlapping triangles and circles in shades of blue, orange, and gray, conceptually representing the scale and stability of oil production in the Permian Basin region.The Permian Basin's surging oil output has helped the U.S. weather global supply disruptions during the Iran conflict.Odessa Today

Texas oil production reached record levels in 2025, with nearly half of all U.S. oil coming from the state's Permian Basin region. This strong output has helped stabilize the U.S. energy supply amid the ongoing war with Iran, which has squeezed global oil markets. Industry experts say the Permian's agile infrastructure and geology have allowed operators to adapt quickly and maintain high production levels even as the number of active drilling rigs has declined.

Why it matters

The Permian Basin's ability to sustain high oil production despite fewer drilling rigs has been crucial in offsetting the disruption to global oil supply caused by the U.S. war with Iran. This has helped keep U.S. gas prices from skyrocketing even further, providing some economic relief during a volatile geopolitical period.

The details

Texas produced nearly 13.6 million barrels of oil per day in 2025, a new record, with 6.6 million barrels per day coming from the Permian Basin. This high output was achieved with only 582 active drilling rigs, down significantly from the 1,543 rigs used 10 years ago. Industry leaders credit the Permian's geology, pipeline network, and ability to drill multiple wells from a single site for this increased efficiency and productivity.

  • Texas set a new oil production record in 2025.
  • The U.S. war with Iran began disrupting global oil supply in 2026.

The players

Ben Shepperd

President of the Permian Basin Petroleum Association, the largest regional trade group in the country.

Todd Staples

President of the Texas Oil and Gas Association.

Ed Longanecker

President of the Texas Independent Producers and Royalty Owners Association.

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What they’re saying

“Without the millions of barrels produced a day in the Permian Basin there's no question we'd be in much more volatile times.”

— Ben Shepperd, President, Permian Basin Petroleum Association

“The Permian's ... consistently demonstrated ability to adapt quickly to market shifts make it one of the most competitive oil-producing areas in the world.”

— Todd Staples, President, Texas Oil and Gas Association

“Depressed rig counts raise legitimate concerns about future production sustainability. If the trend continues without offset, operators risk slower inventory replacement and a potential plateau or gradual decline in output over the medium term, particularly if new drilling fails to keep pace with natural decline rates in existing wells.”

— Ed Longanecker, President, Texas Independent Producers and Royalty Owners Association

What’s next

Industry experts will be closely monitoring rig counts and production levels in the Permian Basin to assess the long-term sustainability of Texas' record oil output.

The takeaway

The Permian Basin's ability to maintain high oil production despite fewer drilling rigs has been a critical factor in stabilizing U.S. energy supply during the Iran war. However, concerns remain about the long-term viability of this trend if rig counts continue to decline.