Texas oil workers sell possessions over fears of Trump's cheap Venezuelan fuel
Workers in Texas's Permian Basin oil industry are bracing for economic hardship as Donald Trump's Venezuelan invasion threatens to flood the U.S. market with cheap oil, according to the Wall Street Journal.
The region has already experienced pain from current low oil prices. Employees have seen paychecks reduced, oil-industry support businesses have cut back operations, and local restaurants and retailers have begun layoffs.
Trump has promised Americans he can reduce oil prices to $50 per barrel following the Venezuelan intervention. Permian Basin workers, anticipating further economic decline, are already liquidating assets in preparation.
Trump's goal of pushing prices below the $60 per barrel threshold necessary for comfortable worker livelihoods is already creating visible economic strain. According to the Journal's Konrad Putzier, "Restaurants are already less crowded, barbers are idling around waiting for customers and a host of businesses linked to the oil field are feeling squeezed. On the local Facebook Marketplace, shiny Ford F-150 pickup trucks are listed for sale at bargain prices."
Element Petroleum Chief Executive Taylor Sell grimly joked, "If you want a new jet ski, right now is the best time to buy."
The region faces a compounding crisis. Beyond the threat of cheap Venezuelan oil, Trump's tariffs have increased costs for materials including chemicals and steel tubes. As new wells face delays, oil-services workers are being laid off or experiencing reduced hours.
Kyle Patterson, engineering manager at drilling-fluid company Buckeye, ios already seeing layoffs at his firm and anticipates a personal pay cut. "You can't just sit around and wait for the market to come back," he told the Journal.
Restaurant owner Nemecio Torres, a Trump voter, has experienced significant business decline. His Cancún Grill in downtown Midland saw revenue fall approximately 30 percent year-over-year. He laid off five workers and has seen his personal income reduced by more than half. Torres recently instituted happy-hour specials to attract customers.
Torres expressed disappointment with Trump's economic impact: "We thought he was going to help the economy here in West Texas."