Source: Shale Magazine
TXOGA President Todd Staples and Chief Economist Dr. Dean Foreman discuss how Texas’ robust energy infrastructure and leadership position safeguard both U.S. and global markets amidst rising geopolitical tensions.
In the latest installment of TXOGA Talks, a podcast from the Texas Oil & Gas Association (TXOGA), TXOGA President Todd Staples sat down with Chief Economist Dr. Dean Foreman to discuss the rising global uncertainty surrounding energy markets and the central role Texas plays in stabilizing both domestic and international supply. Their conversation provided insight into how geopolitical flashpoints are influencing energy prices and how Texas continues to offer security in an unpredictable world.
Staples opened the conversation by noting how quickly energy markets reacted to the U.S. strikes on Iran, with oil prices spiking before quickly retreating. Foreman emphasized that in today’s global market, perception matters as much as physical supply. Unlike in past decades, when geopolitical disruption could send prices soaring for extended periods, Texas’ production strength and infrastructure have helped insulate the U.S., and particularly Texas consumers, from severe price shocks.
Texas, Foreman explained, has become a critical global supplier, not just because of abundant oil and natural gas resources, but because of its ability to deliver reliably and consistently. Staples noted that while Texas accounts for over 43% of the nation’s crude oil production and nearly 30% of natural gas output, the state also leads in refining capacity, pipeline miles, and export infrastructure. This allows Texas to respond quickly when global supply chains are threatened. Foreman pointed to the state’s massive LNG exports, three-quarters of which now go to Europe, as evidence that Texas has stepped up to reduce global dependence on unstable regimes like Russia.
Staples and Foreman also discussed the role of market forces in price formation. Contrary to common belief, oil prices are not simply dictated by OPEC or a handful of major producers. Instead, thousands of traders around the world help set prices in a highly transparent, global marketplace. OPEC can influence prices through production decisions, but ultimately, the market reacts to a complex mix of geopolitical risk, supply dynamics, and investor sentiment.
Looking beyond the Middle East, Foreman highlighted the growing significance of the Indo-Pacific region. China’s increasing control of the South China Sea and North Korea’s provocative rhetoric, including recent statements about supplying nuclear weapons to Iran, could pose serious threats to global trade routes. These flashpoints, while not yet at crisis levels, underscore how quickly regional instability can affect global energy markets.
Throughout the conversation, one point remained clear: Texas energy isn’t just about supply. It’s about trust. Texas barrels build confidence, not only because of what’s in the ground, but because of the systems, infrastructure, and policies that ensure energy can get to market efficiently. Staples stressed that consistent production and stable export capacity make Texas a dependable partner for allies around the world.
Yet sustaining this leadership position requires forward-thinking policy. Both Staples and Foreman called for streamlined permitting, targeted infrastructure investment, and strong trade policy to preserve Texas’ competitiveness. As more manufacturing returns to U.S. soil and global demand continues to rise, ensuring long-term market access is essential.
In closing, Foreman offered a balanced view of the future. He expressed optimism due to strong global demand and job growth in the Texas energy sector, but also urged caution amid rising politicization of energy markets and potential trade barriers. Staples agreed, noting that Texas should be “at the table, not on the menu” when it comes to international trade and energy diplomacy. In an era marked by volatility, Texas remains a source of strength, resilience, and reliability.
As geopolitical risks intensify, the message from TXOGA Talks is clear: Texas energy continues to be a global stabilizer in an unsteady world. With the right policies and continued investment, Texas is ready to meet the moment, delivering not only energy, but assurance to the world.
