CBS7

By Sierra Burnett

MIDLAND, Texas (KOSA) - Rising tensions overseas are pushing oil and gas prices higher here at home.

But industry leaders in the Permian Basin say West Texas continues to play a key role in keeping energy production strong.

The Permian Basin has been producing oil and gas for over 100 years.

Throughout that time producers experienced fluctuations due to the market changes or ‘extreme events’ similar to right now.

Industry leaders are already seeing prices increase for refined products like gasoline and diesel.

With the uncertainty of the current conflict, their main concern is transportation.

Stephen Robertson, Executive Vice President of the Permian Basin Petroleum Association, said “That’s really what I’m seeing going into any kind of price changes right now is threats to straightor for muse that are causing tankers to have to go around Africa instead of go through the straight. And so that greatly impacts the markets and that’s going to increase costs.”

Robertson says anytime there’s a shift in the international market the Permian Basin sees changes almost immediately.

In the beginning of 2026, the average cost of a barrel of oil was around 65 dollars.

However, due to the recent attacks’ prices have jumped to the mid 70’s.

Robertson added, “There’s been a decent jump in the price right now, but again, that price jump whether it is a spike or it is a sustained increase will depend on what continues to happen on a daily basis over the Middle East.”

According to Robertson, over the past two decades the Permian Basin went from producing less than one million barrels a day to over six million.

This gives the U.S. the freedom from being reliant on other countries when production is low.

He said, “But it’s not the type of scenario where just instantaneously tomorrow we would just be able to replace whatever gets taken off the market.”

As of right now, industry leaders are unsure of the lasting impacts this will have on supply and demand for oil and gas around the world.

Robertson says depending on how the conflict lasts will determine investments and projects in the Permian Basin that weren’t as economical.

Possibly leading to more jobs in the oil and gas industry.

“You have to have a few different paths that you probably could take on the table and as each day comes a little more in focus; you might be able to better understand, okay which one of these paths do we really want to take,” said Robertson.

With markets remaining unpredictable drivers could see continued fluctuations in the days ahead.

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