U.S. Secretary of Energy Chris Wright paid a visit to Midland last week as part of the federal “Great American Energy Comeback Tour.”
Adjacently, U.S. refining capacity, liquefied natural gas (LNG) exports, and gasoline prices are all hitting record highs.
U.S. Rep. August Pfluger (R-TX-11), who was present at the gathering in Midland, stated, “America runs on the Permian Basin, and frankly, the world runs on the Permian Basin.”
He added that in 2010, “roughly 900,000 barrels of oil every day” were produced by the Permian Basin, but it now produces over 6.5 million barrels per day.
“Nearly half of all the oil produced in the United States right now, today, comes from the Permian Basin. That is a worthwhile accomplishment,” Pfluger said.
According to the Odessa America, the region is estimated to produce up to 50 percent of domestic oil production by the year 2027, and its oil rigs already represent over 44 percent of all active rigs in the U.S.
With the U.S.’ involvement in two major conflicts — Russia’s war in Ukraine and the war in Iran — the global energy market has undergone major shifts in recent years.
The closure of the Strait of Hormuz triggered the disruption of about one fifth of the world’s petroleum liquids consumption, according to the U.S. Energy Information Administration (EIA), and the strait remains an industry chokepoint. Russia’s refining capacity has dropped substantially since the onset of the war in Ukraine, and the conflicts have led to approximately 10 percent of the world’s refining capacity to drop off, according to The Business Times.
As geopolitical developments continue to impact various pieces in the energy puzzle, Texas presses on for the industry’s yield.
Refining
Gas prices around the nation remain high, with current U.S. West Texas Intermediate estimates showing crude oil prices to be hovering around $85 per barrel. The increase has raised questions among lawmakers not only about oil production, imports, and exports, but also about refining capacity.
During Wright’s Midland visit, he reportedly spoke to the need for refinery output amid rising gas prices, according to Reuters. His Permian Basin meetings included numerous refining companies whose output Wright deemed essential to lowering gas prices across the country.
The U.S. is one of the world’s largest refining bodies, second only to China. Weekly data provided in 2026 from the EIA shows that current U.S. refinery output is consistently higher than it has been in years, with refineries operating at 92 to 97.2 percent capacity since March.
Texas has 34 oil refineries in operation and houses the world’s No. 1 and No. 2 refineries in Port Arthur and Galveston Bay, respectively. Five out of the top ten refineries in the nation are in Texas, with companies like ExxonMobil, Marathon Petroleum, and Saudi Aramco pushing the state’s efforts forward.
At an oil rig site operated by ExxonMobil, Wright told reporters, “The United States refineries are running at record high, but we have refineries in the Middle East that are turned down.”
Wright posted a video on X showing him at an ExxonMobil project, saying the technology and equipment on the site would “change the game for America.” The post also stated that American oil and gas workers “have driven production to an all-time high, making the U.S. the world’s largest producer of oil and natural gas.”
Wright stated that the U.S. would soon announce measures to increase refiners’ fuel output.
LNG Exports
Pfluger spoke to natural gas production in the state during Wright’s visit, stating that in 2010, “the Permian produced roughly 4.5 billion cubic feet of natural gas per day,” but now the state sees an average production of 28 billion cubic feet per day. Pfluger stated the amount was “nearly a quarter of all natural gas produced.”
Last year, Pfluger introduced a bill in the U.S. House called the Unlocking Our Domestic LNG Potential Act. It purported to “repeal restrictions on the export and import of natural gas,” and would grant the Federal Energy Regulatory Commission sole authority to “approve or deny applications to authorize the siting, construction, expansion, or operation of facilities,” such as natural gas terminals, “to export natural gas to foreign countries or import natural gas from foreign countries.”
As of right now, the U.S. Department of Energy authorizes both import and export of natural gas.
The bill has passed through the House but has yet to move through the U.S. Senate.
The Texan reached out to Pfluger for more information on Texas’ refining capacity, Wright’s domestic refining plans, and Texas’ LNG exports, but did not hear back by the time of publication.
Texas has seen a major uptick in its LNG exports recently, with major companies including Cheniere and Golden Pass LNG announcing export projects this year.
The U.S. as a whole has seen an increase in activity, according to the EIA. By the end of 2025, American LNG exports jumped substantially, with May 2026 seeing over 500 billion cubic feet of LNG. In comparison, May 2016 saw 10 billion cubic feet of LNG exports, and May 2021 saw nearly 315 billion cubic feet of LNG exports.