Texas crude, LNG exports meeting global demand as Iran conflict disrupts supply

The Port of Corpus Christi reported its strongest first-quarter performance in history, handling 54.5 million tons of commodities in Q1 2026, a 6.1% increase from the same period last year. Crude oil exports exceeded 2.4 million barrels per day in March, while liquefied natural gas (LNG) exports surged by 33%, reflecting heightened global demand due to disruptions in the Strait of Hormuz caused by the Iran conflict. The port attributed the growth to expanded pipeline operations and over $1 billion in infrastructure investments over the past decade, positioning Texas as a key player in the global energy supply chain. Diamondback Energy, based in Midland, announced plans to activate 30 additional drilling rigs in the Permian Basin by year-end, citing the conflict’s impact on oil supply. CEO Kaes Van’t Hof stated the situation underscores the need to boost production in a region like the Permian Basin, where operations remain efficient. The company’s move aligns with broader industry trends as Texas operators break production records to meet rising demand. Texas Railroad Commissioner Wayne Christian emphasized the state’s indispensable role in global energy stability, linking the surge in exports to sustained investment in drilling and export infrastructure. He called for policy changes, including tax reductions, regulatory cuts, and elimination of green energy subsidies, to ensure Texas maintains its leadership in affordable and reliable energy production. The Port of Corpus Christi’s record exports—including an 11.4% rise in refined products and a 36.8% jump in LNG—highlight the region’s adaptability to market shifts. Kent Britton, the port’s CEO, noted that customers have maximized operations to respond to the Iran conflict, reinforcing Texas’s position as a critical supplier for both domestic and international markets.