Texas driller produces US oil industry 'miracle'
One of America’s largest oil fields is still pumping fuel while federal drilling permits backlogged for 9-12 months
US oil producers say it's a 'miracle' domestic drilling is happening at all
FOX Business' Lauren Simonetti reports from Pecos, Texas, where oil permits are taking up to 12 months to get approved.
In the vast Permian Basin located in western Texas, oil isn’t hard to come by according to producer and drilling company Tall City Exploration.
With record-high gas prices and the market’s need for more supply, Tall City CEO Michael Oestmann says the company is working to increase daily production from 10,000 barrels to 20,000 by the end of the year.
"It's right here and it's good for America," Oestmann told FOX Business’ Lauren Simonetti. "It creates American jobs."
While Tall City’s private land can receive drilling permits in as quickly as 10 days, some of their Permian Basin neighbors on federal land are waiting anywhere from 9 to 12 months.
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Though it’s a "miracle" any oil is being drilled at all, Simonetti points out three reasons why the U.S. doesn’t see more domestic production.
"Wall Street has a straitjacket on these companies," she noted, while adding that Senate Democrats' plan to tax oil companies’ windfall profits could disincentivize investors.
More importantly, however, is how U.S. drillers feel insulted by reportedly ongoing oil trade negotiations with Venezuela.
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"They're going to produce it in a very unfriendly environmental way. It's going to be very bad for the environment," Oestmann said. "We're going to produce it much cleaner here."
To attract more workers and ultimately produce more oil, Tall City increased wages by 20%.
But, that still may not be enough to pump the brakes on climbing gas prices – which ended the week at a fresh record of $4.33 Friday, according to the latest AAA data.
Michael Oestmann talks to FOX Business outside of Texas drilling company Tall City Exploration.
One oil market expert told Fox News Digital Thursday the national average is headed for $4.50 and could go higher if tensions between Ukraine and Russia continue to escalate.
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