Article

Texas independent oil producers are expected to face continued challenges as depressed prices and rising operational costs persist through 2026, with West Texas Intermediate crude projected to average $52 per barrel. While the Permian Basin maintains high production levels, increasing labor and equipment expenses, along with regulatory uncertainties, may lead to deferred drilling and a reduction in rig counts. Despite these obstacles, U.S. crude output is anticipated to remain elevated, bolstered by growing LNG export volumes driven by global demand.