Last year's record oil production in West Texas has helped the United States supply remain stable despite stockpiles facing a tight squeeze around the world because of the war in Iran, according to experts.
Nearly half of all oil produced in the United States in 2025 came from Texas, even though fewer new oil wells were drilled, The Texas Tribune reported on Thursday.
According to Texas Oil and Gas Association President Todd Staples, 10 years ago, Texas oil companies produced 9.2 million barrels of oil per day using 1,543 rigs.
Last year, oil companies produced more than 13 million barrels per day but had only 582 rigs.
Analysts and industry groups said oil production is up because of the state's extensive pipeline and transportation network, its geological makeup, and companies' ability to operate on multiple sites simultaneously.
Last year, U.S. oil companies produced a record 13.6 million barrels per day, according to the Energy Information Administration.
Of that, 6.6 million barrels per day, or nearly half, came from the Permian Basin, which spans western Texas and southeastern New Mexico.
While production rose last year despite fewer rigs, it could dip 2% in 2027, the first decline since 2021, according to the EIA.
Texas oil leaders, meanwhile, said gas prices could have been even worse without the production from their state.
"Without the millions of barrels produced a day in the Permian Basin, there's no question we'd be in much more volatile times," said Ben Shepperd, president of the Permian Basin Petroleum Association, the largest regional trade group in the country.
"The strong production coming out of the Permian Basin, however, helps provide a stable source of energy for the United States and our allies, which can reduce volatility when conflicts arise in other parts of the world," he added.
Industry groups have reported record production for Texas oil companies for at least the past six years.
Industry and political leaders say the increase means billions of dollars for the state's school districts and coffers.
Part of the reason for the increase lies with the geology in the Permian Basin, which allows operators to adapt their strategies quickly.
"While we are not immune from what's happening around the world, we occupy a position of strength far beyond most other nations," Staples said. "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."
However, the lower rig counts mean there are concerns for future production, said Ed Longanecker, president of the Texas Independent Producers and Royalty Owners Association.
"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," he said.
Meanwhile, the Middle East conflict has given oil companies short-term windfalls, with oil and gas prices soaring before Tuesday's ceasefire.
Experts said the level of oil production in West Texas could determine how the war affects the U.S. economy.
"West Texas serves as a partial counterweight to disruptions in the Middle East," said Stephen Sagriff, director of intelligence at Enverus, an energy analytics firm.
"It is also a source of geopolitical leverage for the U.S., a region whose own investment decisions are shaped by the volatility," he noted.
Sandy Fitzgerald ✉
Sandy Fitzgerald has more than three decades in journalism and serves as a general assignment writer for Newsmax covering news, media, and politics.
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