Trump's Call for More Oil Amid Iran Conflict Falls Flat in Texas

President Donald Trump's call for more oil production Monday, following the U.S. bombing of nuclear facilities in Iran, isn't getting much traction among Texas oil companies.

Todd Staples, president of the Texas Oil & Gas Association, said in interview Tuesday while companies were grateful for Trump's efforts to boost the industry, ultimately crude prices would determine whether they increased drilling.

"I believe companies are willing to respond should there be supply chain disruptions to the extent they give long term (price) signals," he said. "So major shifts can be justified."

READ MORE: In Texas oil country, Trump enthusiasm wanes as prices plunge

The Texas oil industry has struggled since last summer amid a decline in crude prices, with the number of drilling rigs operating in West Texas's Permian Basin down 12% from a year ago, according to data from Houston-based oil field company Baker Hughes.

Exacerbating the problem, some oil executives say, are tariffs created by the Trump administration, which have raised the price of steel and other materials.

In his post Monday, Trump called on the Department of Energy to "drill, baby, drill," following up with a warning to those who did not comply.

"EVERYONE, KEEP OIL PRICES DOWN. I’M WATCHING! YOU’RE PLAYING RIGHT INTO THE HANDS OF THE ENEMY. DON’T DO IT!" he wrote.

But even after the U.S. bombing of Iran and more than a week of attacks by Israel, prices have not risen to the point many oil companies would start expanding drilling operations, analysts says.

While prices Monday were over $72 a barrel, they closed Tuesday at close to $65 a barrel. And forecasts show oil prices declining over the next six months to less than $60 a barrel in 2026, below the level at which many oil operations are profitable.

Even if oil executives wanted to drill to appease Trump, they would be restrained by their investors, who want to see high returns, not "unprofitable tribute," said Clayton Seigle, a senior fellow at the Center for Strategic and International Studies in Washington.

"Its not like other countries where politicians can call up the state-owned oil company and say increase supply," he said.