President Trump visited Corpus Christi on Saturday to promote his energy policies, claiming his administration has boosted Texas oil production and lowered gas prices after ending what he called the “Biden export ban.”
During his remarks at the Port of Corpus Christi, Trump told supporters he had unlocked the country’s potential after taking over a nation that was “dead.” He credited his “drill, baby, drill” message to Texas energy workers for increased production and lower pump prices. According to AAA, regular gasoline in Texas currently averages $2.60 per gallon, down from $3.47 in 2022 during the Biden administration.
Todd Staples, president of the Texas Oil and Gas Association, said the visit underscores that “energy dominance begins in Texas.” He noted the state has reached record levels in crude oil and natural gas production, benefiting consumers through increased supply and lower prices while supporting exports to allies.
However, Ed Hirs, an energy fellow at the University of Houston, said Trump’s tariffs on steel and aluminum have significantly increased drilling costs. “We’re getting $20 a barrel less than we were before the president took office, and we’re spending $3 to $5 to $10 a barrel more,” Hirs said. The higher costs have led to layoffs in the oil industry, he added.
The Texas Oil and Gas Association reported that upstream oil and gas employment remained flat in 2025, though the industry still employs hundreds of thousands of Texans across the value chain. One bright spot has been liquefied natural gas exports, which performed well in helping European allies reduce dependence on Russian gas.
Energy Secretary Chris Wright signed an order during the visit to expand LNG exports from Cheniere Energy’s Corpus Christi terminal, making it the second-largest LNG exporter in the United States.
What It Means for Subcontractors
The mixed signals from Trump’s Texas visit reflect the complex reality facing field service companies. While increased drilling activity could mean more work opportunities, the $3-10 per barrel cost increase from steel and aluminum tariffs is squeezing margins throughout the supply chain. Subcontractors providing pipeline construction, drilling support, and infrastructure services may face higher material costs while competing for contracts in a market where operators are earning $20 less per barrel.
The flat employment numbers suggest operators are being selective about new projects despite policy support for increased production. Subcontractors should prepare for potential pricing pressure as upstream companies balance higher input costs against lower commodity revenues.
