Iran Sanctions Prove Beneficial for Texas Oil

The Trump administration's decision to end exemptions for countries that still import Iranian oil could mean big bucks for Texas producers.

The U-S re-imposed sanction on exports of Iranian oil back in November as a way to dry up the terrorist nation's main source of revenue. Baron Lukas, CEO of North Texas-based E-L-S says much of the sanctions' success depends on China.

"If the United States and China come up with a real good trade agreement, then the global economy will benefit, demand for oil will stay high or increase, possibly oil goes up to a point; and that's all good for everybody... It's that balancing act that I think the administration is going to continue to push in terms of OPEC and leave Saudi Arabia producing more or less depending on the global economy's needs."

Even if oil prices drop, Lukas says the Permian Basin allows Texas producers to make a profit even at 50-dollars a barrel.

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