Article

Depressed oil prices are expected to persist through 2026, impacting Texas independent producers more than major companies. West Texas Intermediate crude is projected to average $52 per barrel in 2026, down from $65 in 2025.

The Permian Basin accounts for 6.3-6.6 million barrels per day, with record U.S. crude output around 13.6 million barrels per day in 2025. Operational costs for producers are rising, driven by labor and equipment costs.

LNG export volumes are anticipated to grow in 2026 due to increased global demand. Regulatory costs and uncertainties are adding strain, potentially leading to deferred drilling and reduced rig counts. Despite challenges, production remains elevated, with a slight decline expected in 2025.