Trump Boasts of $300 Billion Mega-Deal... "This Market" Thrives Amid Iran War [U.S.-Iran War]
Wartime Boom for U.S. Shale Gas
Large-Scale Refinery to Be Built in Texas
As war has erupted between the United States and Iran, the Strait of Hormuz has been blockaded, resulting in a wartime boom for U.S. shale gas companies. With shale gas drilling activities rapidly expanding, there are already concerns about a shortage of drilling equipment.
On March 11 (local time), Andy Hendricks, CEO of major U.S. shale gas drilling company Patterson-UTI Energy, said in an interview with Bloomberg News, "Shale gas production activities will expand significantly from the end of this year through 2027." He added, "Equipment shortages could occur in the Haynesville Basin in Texas and Louisiana within the next two to three years." He explained, "All equipment capable of using natural gas as fuel has already been exhausted, and there will be a sharp increase in equipment demand in the Haynesville Basin over the next two to three years." He further noted, "The operating rate in this region needs to be increased, and to do so, new equipment must be produced and deployed."
Recently, the Strait of Hormuz has been blockaded due to the war with Iran, causing a sharp decline in exports of Middle Eastern liquefied natural gas (LNG) and a surge in demand for U.S. LNG. As a result, demand for drilling equipment is also rising rapidly. In particular, there is reportedly a severe shortage of hydraulic fracturing equipment, which is essential for shale gas drilling.
In the United States, even before the war, there has been a boom in the construction of artificial intelligence (AI) data centers since last year, which has significantly increased demand for shale gas as a power source. With the added impact of the war with Iran, export volumes are also projected to rise substantially.
In response to the wartime boom, a large-scale refinery is also set to be built in Texas. President Donald Trump announced via the social media platform Truth Social the previous day that a major refinery will be constructed at the Port of Brownsville, Texas, within the second quarter of this year.
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He emphasized that this is "the first time in 50 years," and described it as "the largest deal in U.S. history, worth 300 billion dollars (about 445 trillion won), and a major victory for the energy industry and the people of South Texas." The refinery is being invested in by the Reliance Group, led by Indian billionaire Mukesh Ambani, and will use only U.S. shale oil as raw material. The plan is to process approximately 1.2 billion barrels of shale oil over the next 20 years.
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