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Higher oil prices will not spur more US production, oilfield services company Patterson-UTI says
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Higher oil prices will not spur more US production, oilfield services company Patterson-UTI says
Mar 11, 2026 7:15 AM

HOUSTON, March 10 (Reuters) - A surge in energy prices

caused by the U.S.-Israel war with Iran will not lead to

additional U.S. oil output without the market predictability

needed to ensure more drilling, Andy Hendricks, CEO of oilfield

services company Patterson-UTI, said on Tuesday.

Oil prices have swung wildly since the end of February after

Iran shut the Strait of Hormuz, a key trade route, forcing major

producers in the Middle East to cut production. U.S. crude

futures hit $119 a barrel at the start of this week, the

highest level since August 2022, and moved within a $35.80 range

during Monday's trading session.

On Tuesday, they settled at $83.45 a barrel, down $11.32, as

U.S. President Donald Trump predicted de-escalation.

"The challenge is in December, when we and the oil and gas

companies we work for were all working on our budgets, oil was

in the $50s," he said in an interview, adding that it can take

more than half a year to bring wells online.

"What is the true price of oil going to be in six to nine

months?" he asked.

U.S. oil production is already near record levels, hitting

13.7 million barrels per day last month, according to the U.S.

Energy Information Administration. Permian production was at

6.59 million bpd, down from a record 6.74 million bpd hit last

year.

Hendricks said the trajectory of U.S. oil production would

depend largely on how long it takes the situation in Iran to

normalize and trade to resume through the Strait of Hormuz.

"I think the risk is that Permian oil production starts to

slow this year. If it does slow this year that will probably

cause prices to move up and then that will cause the industry to

start to pick up activity," he said.

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