West Texas Oil Production Helps Stabilize US Supply Amid Iran War

Record oil output in the Permian Basin offsets global supply disruptions caused by the conflict.

Apr. 10, 2026 at 11:34pm

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A minimalist illustration composed of overlapping geometric shapes in shades of blue, green, and orange, conceptually representing the vast scale and efficient infrastructure of the Permian Basin's oil production that has stabilized US energy supply.The Permian Basin's ability to rapidly scale oil production has provided a crucial buffer against global supply disruptions during the Iran conflict.Odessa Today

Texas produced nearly half of all U.S. oil last year despite having drilled fewer new oil wells, a trend analysts attribute to the state's geological makeup, pipeline network, and ability to work on multiple production sites quickly. This West Texas oil has helped keep U.S. supply steady as global oil supply has been squeezed during the Iran war, experts say.

Why it matters

The strong oil production from the Permian Basin in West Texas has provided a stable source of energy for the United States and its allies, helping to reduce volatility in oil prices and supply during the conflict with Iran. This has insulated the U.S. economy from more devastating consequences of the war.

The details

American oil companies produced 13.6 million barrels of oil daily last year, with almost half - 6.6 million barrels a day - coming from the Permian Basin. Oil companies accomplished this record with a fraction of the drilling rigs they historically relied on, due to the Permian's geological makeup and efficient infrastructure that allows operators to adapt quickly to market shifts. The Permian's ability to produce large volumes of oil at a lower cost than other regions has also lessened the U.S. dependence on foreign oil imports.

  • Texas produced nearly half of all U.S. oil in 2025.
  • American oil companies broke their own production record in 2025, producing 13.6 million barrels of oil daily.
  • The EIA report predicts a 2% drop in oil production in 2027, the first decline since 2021.

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.

Stephen Sagriff

Director of intelligence at Enverus, an energy analytics company.

Don Murchison

Director of global strategy at RINA North America, an engineering consulting firm.

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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

“While we are not immune from what's happening around the world, we occupy a position of strength far beyond most other nations. 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

“West Texas serves as a partial counterweight to disruptions in the Middle East. It is also a source of geopolitical leverage for the U.S., a region whose own investment decisions are shaped by the volatility.”

— Stephen Sagriff, Director of Intelligence, Enverus

“We often see a significant uptick in production in West Texas when there is conflict in other parts of the world.”

— Don Murchison, Director of Global Strategy, RINA North America

What’s next

The EIA report predicts a 2% drop in oil production in 2027, the first decline since 2021. Industry experts will be closely monitoring rig counts and new drilling activity in the Permian Basin to assess the sustainability of the region's record production levels.

The takeaway

The Permian Basin's ability to quickly ramp up oil production has provided a crucial stabilizing force for the U.S. energy supply amid the global disruptions caused by the Iran war. This has insulated the American economy from more severe impacts, demonstrating the strategic importance of West Texas' oil resources.