Hello friends, and welcome to the May 2026 issue of BIC Magazine.
The U.S. action in Iran has reminded us of something the U.S. O&G and petrochemical industries have known for years: when global energy markets face disruption, American producers become more valuable. Whether this conflict resolves quickly or drags on for months, the underlying truth remains. The Gulf Coast is positioned to benefit from Middle Eastern instability in ways we haven’t seen in decades.
Iran produces roughly 3 million barrels of oil per day when operating without sanctions or conflict disruption. When that supply gets threatened or choked off, global oil prices spike. European and Asian buyers who relied on Iranian crude scramble for alternatives. The United States is sitting on massive reserves, world-class infrastructure and the production capacity to step in.
The Permian Basin alone produces over 6 million bpd. The Gulf Coast has more refining capacity than any region on Earth. Our LNG export terminals are shipping record volumes to Europe and Asia. We’ve spent the last 15 years building the infrastructure to be energy independent, and now the world needs what we have.
This isn’t about celebrating conflict. It’s about recognizing that when global supply chains break down, proximity and reliability matter more than price. American energy is both. We’re geographically stable, we have the rule of law and we deliver. That’s why contracts get signed, projects get funded and Gulf Coast facilities run at capacity.
For chemical manufacturers, the story is even more compelling. When Middle Eastern producers face supply disruptions or sanctions, their ability to compete in global markets weakens. U.S. producers, with abundant natural gas liquids from shale plays, can capture market share in plastics, resins, solvents and specialty chemicals.
The feedstock advantage we enjoy here is hard to overstate. Natural gas prices in the U.S. have remained remarkably stable compared to global benchmarks, even during periods of extreme volatility overseas. That stability translates directly into competitive advantage for ethylene crackers, methanol plants and downstream chemical production. When European chemical plants are paying three or four times what we pay for feedstock, they can’t compete on cost, and their customers know it.
Listening to plant managers and operations leaders across Louisiana and Texas over the past few months, one sentiment is remarkably consistent: optimism for the mid- and long-term. Not because they’re naive about the risks, but because they understand the fundamentals. When the world is unstable, it turns to stable suppliers. That’s us.
But here’s the part that matters beyond the balance sheets. This moment is a reminder of why the work you do matters. The welders fabricating pipe at a Beaumont chemical plant, the operators running distillation towers in Lake Charles, the engineers designing the next expansion in Freeport. You’re not just keeping a facility running. You’re keeping the world running.
Energy independence isn’t an abstract policy goal. It’s the reason hospitals have power, the reason factories can manufacture electronics and the reason American consumers aren’t paying $8 a gallon for gasoline. The infrastructure you build, maintain and operate makes all of that possible.
And let’s be honest, it also makes us safer. When we don’t depend on hostile regimes for our energy needs, we have more freedom to act in our own interest. When our allies don’t either, they have more freedom, too. Energy security is national security. You already know that, but it’s worth saying out loud.
Prolonged instability in the Middle East disrupts global shipping lanes, driving up costs for raw materials or creates unpredictable swings in commodity markets. Nobody wants that. But, the Gulf Coast is better positioned than almost anywhere else to weather it and even benefit from it.
The projects being announced right now reflect that confidence. Billions in capital investment are flowing into Louisiana, Texas and the broader Gulf region. Expansions, upgrades, new builds. Companies are betting that demand for American energy and chemicals is going to stay strong regardless of how geopolitical situations play out. They’re betting on us.
And they’re betting on the workforce that makes it all possible. Executives greenlighting these projects are showing confidence in the Gulf Coast labor pool, the skilled trades, the experienced operators, the engineers who know how to navigate complex permitting and execute multimillion-dollar builds on time and on budget. That expertise doesn’t exist everywhere. It exists here because generations of workers have built it, refined it and passed it down.
There’s a broader lesson here. The world is unpredictable. Markets shift. Politics change. Supply chains break. But the need for energy, for materials, for the things that make modern life possible, that need is constant. The people who can reliably meet that need will always have work, always have purpose and always have value.
I think about a guy who runs maintenance at a cracker plant outside Houston. He’s been doing it for 30 years. He doesn’t think of himself as part of some grand geopolitical strategy. He thinks about keeping equipment running, hitting production targets and making sure his team goes home safe every day. But his work matters in ways that reach far beyond his plant fence line. It matters to the global economy. It matters to national security. It matters.
That’s true for all of you reading this. Whether you’re in operations, safety, procurement, engineering or any of the dozens of roles that keep this industry moving, you’re part of something bigger than a paycheck. You’re part of the infrastructure that holds civilization together. That might sound dramatic, but it’s not. It’s just true.
So while the headlines will keep shouting about conflict and crisis, remember what you already know: this industry has survived wars, recessions, regulatory upheavals and every other disruption you can imagine. It survives because the people who work in it are resourceful, resilient and committed to doing the job right.
The resilience isn’t just about bouncing back from setbacks. It’s about adapting, improving and coming out stronger. I’ve watched this industry navigate the 2008 financial crisis, the oil price collapse of 2014-2016, the COVID-19 pandemic and every regulatory shift in between. Each time, the doomsayers predicted collapse. Each time, the Gulf Coast proved them wrong. Not through luck, but through hard work, smart investment and a refusal to give up on what we do best.
Middle Eastern tensions will rise and fall. But the need for reliable energy and chemical production won’t go anywhere. As long as we keep investing in our people, our infrastructure and our operational excellence, we’ll be fine. Better than fine.
Stay safe, stay informed and keep doing the work that matters.
