Texas energy producers will profit from higher prices caused by Ukraine war

 Texas Tribune/Houston Chronicle:

Energy markets responded to the Russian invasion of Ukraine on Thursday with soaring energy prices — the global benchmark for oil exceeded $100 a barrel for the first time since 2014 — which will bring higher profits for Texas’ oil and gas industry, at least temporarily.

Energy analysts say the conflict could slow the flow of oil and gas from Russia — one of the world’s largest producers — to Europe in the weeks ahead. The price of oil dipped back down to $99 late Thursday after President Joe Biden did not target Russian oil and gas when he announced sanctions against Russia.

Higher oil and gas prices mean more money for Texas producers — and could lead to industry growth in the near term, according to Karr Ingham, an economist with the Texas Alliance of Energy Producers.

While Texas oil and gas producers could see more demand for their products, energy consumers in Texas and worldwide will foot the bill for increased global energy costs, analysts said.

“This is bad for people who, say, have an electricity bill, a gas bill or drive a car,” economist Eric Lewis, an assistant professor at the Bush School of Government and Service at Texas A&M University who focuses on oil and gas, said in an interview.

In the meantime, Texas oil and gas producers can fill some of the void if Russia curtails or halts natural gas exports to Europe.
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Where we should see increased production is on federally controlled sites where Biden has been blocking the drilling.  If he lifted the moratorium we could see increased production offshore and on federally controlled sites in states like New Mexico and Colorado.  If Biden were smart, and there is no evidence that he is, he would be working with Europe to replace all Russian production.  That would hurt Putin's war effort.  It would also help the US economy and give Europe a more secure source of energy.