Oil companies that drill in West Texas are seeing big wartime profits, but many are holding back on aggressive capital spending, wary of repeating the boom-bust cycles that followed the pandemic when prices collapsed after a drilling surge.
Natural gas is in high demand. The U.S. is boosting exports abroad, while data center growth is driving the need for natural-gas-powered electricity domestically, as well.
The state isn’t seeing a boom from the energy supply crunch. That limits the uptick in tax revenue that comes from higher prices, and makes employment unlikely to see a big boost.
As conflict disrupts oil and gas flows through the Middle East, exports from the Port of Corpus Christi have reached new heights, driving jobs and investment along the Texas coast.
Higher oil prices typically mean more cash in hand for oil producers, including those in the U.S. But increasing production is a slow and expensive process.
