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Following the energy sector lately largely resembles a roller coaster ride. While the straight runs and some curves on the track provide a welcome feeling of money being made, and a respectable portion of men and women hard at work in the patch and other areas, the vertical plunges and twists bring more fear than excitement. President Trump’s One Big Beautiful Bill signed into law might bring some excitement to some, but the rising tensions in the Middle East mirror a straight down pulling negative Gs with sharp twist to the right finishing with a roll into an immediate incline.
As seen in news coverage, when Israel and Iran’s sparring escalated and with nuclear threats and relationships at stake, it was inevitable the United States would get involved. As a result, the terrifying part of the roller coaster ride is at hand. With Iran controlling the northern side of the Strait of Hormuz, a corridor traversed by ships transporting approximately 20 percent of the global daily supply of oil, supply could be threatened and send prices skyrocketing.
Iran has not targeted shipping activity in the Strait of Hormuz, but some fear it is a realistic possibility. The United States alone imports seven percent of its oil through this waterway. If attacks or disruption were to occur, the oil and gas sector could see a new reality that includes prices over $100 per barrel resembling the market back in 2008.
Threatened supply and increased price possibilities, however, are not exclusive to a chess move by Iran, a major global producer of oil. Israel could wage the same scenario in its strategy to defeat Iran, a country rich in oil assets. Targeting those assets could also lead to a shortage paired with rising prices.
Additionally, the Russia and Ukraine conflict has continued longer than some had expected. Its aftermath has influenced markets itself, but the tensions between Israel and Iran seem to offer a more illuminated potential outcome. Although brief instances of settlement were discussed, the volley of rockets and bombs resumed. With each day, the market uncertainty has hinted at change.
The final outcome will dictate supply and pricing moving forward. President Trump’s One Big Beautiful Bill is expected to bring some good news to the oil and gas world, but we will have to wait and see if any positive steps forward are overshadowed by geopolitical tensions overseas.
Nick Vaccaro is a freelance writer and photographer. In addition to providing technical writing services, he is an HSE consultant in the oil and gas industry with twelve years of experience. Vaccaro also contributes to SHALE Oil and Gas Business Magazine, American Oil and Gas Investor, Oil and Gas Investor, Energies Magazine and Louisiana Sportsman Magazine. He has a BA in photojournalism from Loyola University and resides in the New Orleans area. Vaccaro can be reached at 985-966-0957 or nav@vaccarogroupllc.com.
- Nick Vaccarohttps://energiesmedia.com/author/nick-vaccaro/
- Nick Vaccarohttps://energiesmedia.com/author/nick-vaccaro/
- Nick Vaccarohttps://energiesmedia.com/author/nick-vaccaro/
- Nick Vaccarohttps://energiesmedia.com/author/nick-vaccaro/
- Nick Vaccarohttps://energiesmedia.com/author/nick-vaccaro/
- Nick Vaccarohttps://energiesmedia.com/author/nick-vaccaro/
Oil and gas operations are commonly found in remote locations far from company headquarters. Now, it's possible to monitor pump operations, collate and analyze seismic data, and track employees around the world from almost anywhere. Whether employees are in the office or in the field, the internet and related applications enable a greater multidirectional flow of information – and control – than ever before.