$100 Oil Is Back in Sight. What It Could Mean for West Texas
MIDLAND, Texas (TXAN 24) — Oil prices are climbing toward the $100-per-barrel mark, putting the Permian Basin back in the spotlight and raising questions about what higher crude prices could mean for West Texas.
West Texas Intermediate crude reached roughly $94 per barrel Tuesday, while Brent crude moved closer to $100 as renewed attacks on energy infrastructure in the Middle East increased concerns about global oil supplies.
For Midland, Odessa and communities throughout the Permian Basin, sustained higher oil prices could mean increased drilling activity, more demand for oilfield services and additional economic activity.
The Permian Basin accounts for nearly 40% of U.S. oil production and nearly 15% of U.S. natural gas production, according to the Texas Railroad Commission.
Energy analysts say a prolonged $100-oil environment could significantly increase drilling. East Daley Analytics estimates Permian rig activity could rise from about 241 rigs to roughly 300 by the end of 2027 if crude remains around $100 per barrel.
But higher crude prices can also mean higher costs for consumers, particularly at the gas pump.
For West Texas, the question now is whether oil prices briefly approach $100 — or whether the region is heading toward another sustained energy boom.
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