Efforts by the Trump administration to push more Venezuelan oil onto the global market, with the goal of lowering prices, are creating concern in West Texas, where producers say cheaper oil threatens drilling, jobs and local business activity, according to a new report from the Wall Street Journal.
Oil prices have fallen since last spring, recently dipping below $60 a barrel — a level at which many operators can keep pumping but often avoid starting new wells. President Trump believes exerting greater control over Venezuela’s oil industry could drive prices down to $50 a barrel, The Wall Street Journal has reported. At the same time, tariffs have raised costs for materials such as chemicals and steel tubing, according to Midland oil executives.
In the Permian Basin, the heart of U.S. fracking, drilling activity has slowed. “We’re definitely not drilling right now,” said Taylor Sell, chief executive of Element Petroleum.
The number of active rigs in the region is down 14% over the past year, according to Enverus. Companies have delayed new wells, cut staff and reduced worker hours. Kyle Patterson, engineering manager at Buckeye, said the company laid off about 10% of its workforce. “You can’t just sit around and wait for the market to come back,” he said.
The Journal writes that local industry leaders worry that prolonged low prices will increase U.S. dependence on imports. “It has really cast a shadow over the Permian,” said Ben Shepperd, president of the Permian Basin Petroleum Association.
Some producers say they oppose relying on Venezuelan oil. “We are on a gold mine; we can produce enough oil to supply ourselves,” said Bubba Dobson, a Midland-based business representative who has seen his pay decline as drilling demand weakens.
The slowdown is affecting the wider economy. Hotel occupancy in the region fell 5.6% between November 2024 and November 2025, according to CoStar. As drilling activity declines, spending at local businesses has softened.
Veteran producer Paul Kenworthy said low prices have forced him to pause some projects, adding, “This is a boom-and-bust business.”
While some residents support the administration’s broader policies, frustration is growing among business owners. “We thought he was going to help the economy here in West Texas,” said restaurant co-owner Nemecio Torres, whose revenue dropped about 30% last year.
Others say the downturn may deepen. “It’ll be a year until we really start feeling the pain,” said Pat Dennis, who sells oilfield tools.
In Odessa, where oil paychecks once dominated local commerce, store manager Ruby Ramirez said business has slowed sharply. “It’s an oil-field town,” she said. “The oil field’s not the oil field anymore.”
