08-05-2025
‘Wait baby wait': Local energy expert weighs in on tariff impact in the Basin
ODESSA, Texas (KMID/KPEJ) – In the past month, new drilling permits in Texas have decreased by 50% across the Permian Basin. Local energy expert Kirk Edwards weighed in after witnessing President Trump's 'damaging' effects on the Texas oil and gas industry.
In a recent post to LinkedIn, Edwards laid out what the decrease could mean for the industry.
'That's a clear sign oil and gas operators are pulling back hard in response to lower oil prices, tariffs, and OPEC's surprise production increases (which jumped even more over the weekend),' said Edwards. 'Just a few weeks ago, Texas saw about 180 new drilling permits per week. Over the past month? That number has dropped to around 90 per week. Do the math, that's a staggering slowdown.'
Edwards, The President-CEO of Latigo Petroleum said operators like Diamondback Energy and Matador Resources Company have already announced plans to lay down multiple rigs, and you can bet others will follow.
'This pullback isn't instant, rigs are typically on 30, 60, or even 365-day contracts. Frac crews are also locked in post-drilling. But if you're a drilling engineer today and have the option to sign a new rig contract or wait, you're waiting, you want some certainty on where oil prices are headed. It is now 'Wait Baby Wait'!'
Stay with us on-air and online as this story develops.
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