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Iran war causes Texas oil production to rise
Oil production in Texas is on the rise due to the war in Iran, although local authorities warn of price uncertainty. FOX 4's Shaun Rabb has more.
DALLAS - The war with Iran is driving up global oil prices and fueling an increase in local oil production. But it’s not a significant increase, according to the Dallas Federal Reserve.
Texas Energy Outlook
What we know:
The Dallas Federal Reserve released its findings of a recent energy survey of 200 oil and gas companies in Texas, Oklahoma, and northern Louisiana.
"The latest survey results show activity in the upstream oil and gas sector increased in a quarter-over-quarter basis," said Kunai Patel, a senior economist with the Dallas Federal Reserve.
While employment is unchanged in the oil patch, production is up over the fourth quarter of last year.
"Activity rose for the first time in almost a year, accompanied by a broad-based improvement in the operating environment for oil and gas support services. The ongoing conflict in the Middle East, however, has generated substantial uncertainty for firms about the near-term outlook," Patel said.
War with Iran
Big picture view:
Since the start of the war, oil prices have surged at times to over $100 a barrel.
And the uncertainty over the U.S.-Iran impasse is what’s leading to the uptick in gas prices.
"Until this conflict is settled and really until the Strait of Hormuz opens and then probably several months after that before the oil begins to flow, it will be a while before we see some relief in prices," said Bruce Bullock with the SMU Maguire Energy Institute.
He’s expecting that oil and gas prices will stabilize and even go down later this year, depending on what happens with Iran.
"But the intensity and the length of this conflict is something that is very, very unpredictable," Bullock said.
What they're saying:
For consumers, the uncertainty is unwanted.
"We just eat it and keep pushing. Nothing we can do about it at this point, we just got to grit our teeth and bear it," said Harold, who was filling up his vehicle in Dallas on Wednesday. "They need to fix it. They need to fix it.
"I’m okay with it temporarily. I can’t stand filling up my truck, you know, for $100 every time. So that can’t go on forever," added Matt, who was also filling up in Dallas.
The Source: FOX 4's Shaun Rabb gathered information for this story by talking to Kunai Patel with the Dallas Fed and Bruce Bullock with the Maguire Energy Institute.