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Venezuelan oil reboot not expected to spur windfall in Texas

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Venezuelan oil reboot not expected to spur windfall in Texas


With former Venezuelan President Nicolás Maduro out of power, President Trump said he wants to reboot the oil industry in Venezuela. 

That idea has raised questions about whether it could cause a price spike at the gas pump and a downturn in the Texas oil patch region. 

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Now, a spike at the pump and a production slump in the Texas oil patch may not happen this year, but with oil prices down, a budget crunch for state lawmakers may be waiting when they return to Austin in 2027.

What they’re saying:

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The situation in Venezuela is creating a lot of political uncertainty, but a Texas energy expert said he is not expecting that uncertainty to cause an oil patch crash or a gas pump pike in 2026.

Prices at the pump are low and despite some recent big swings, up and down, analysts say 2026 could see the lowest prices since the pandemic. That prediction has people like Dale Owens cautiously optimistic.

“Things change so drastically nowadays. I mean, look what’s happening with the government, so anything can affect the price. But right now I’m really happy that it’s stable,” said Owens.

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There are big reasons for that local gas price stabilization, and it predates the leadership change in Venezuela, according to Ed Hirs, an Energy Fellow at the University of Houston.

“The first is that the president has asked MBS (Saudi Crown Prince Mohammed bin Salman) and OPEC nations to continue pumping a pace. Number one. Number two, this helps hamstring the Russian economy and its war effort. And that’s also one of the goals of not only the European Union, but of the Trump administration. And number three, we’ve got the midterm elections coming up,” said Hirs.

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The price of a barrel of oil is expected to increase slightly because of the uncertainty regarding Venezuela. Texas crude oil production, according to an update released Monday, was stable in December, but state data also showed drilling permits for 2025 were at 369 and that’s down from 459 in 2024.

“When President Trump took office, oil was about $80 a barrel, today it’s under $60 a barrel. We are the high-cost producers in the global commodity oil market, and the cost of drilling these wells has gone up by between 5% and 12%, primarily because of Trump’s steel tariffs. Not only does the imported steel now cost a lot more, but domestic producers raise their So the producers in West Texas and across the Permian Basin are getting squeezed by much lower revenues, $20 a barrel less and much higher cost. It’s not a good capital investment for Wall Street,” said Hirs.

Dig deeper:

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The oil industry remains a big part of the Texas economy and the state budget. State lawmakers will return to Austin in 2027 to crunch numbers for a new two-year budget.

“I think they need to be looking at the budget. So the state comptroller needs to be running the numbers now based on lower oil revenues, not only for state lands, for example, for the universities, but for the state tax receipts. And that applies to the counties and cities that rely on these revenues to keep their budgets balanced. It’s going to be lower for longer,” said Hirs. 

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There are also doubts about whether the Texas refineries will get a financial windfall if the Trump Administration is able to reboot the oil industry in Venezuela. There are about six refineries in Texas and Louisiana that can process the heavy crude that is located in Venezuela.

“Well, it might help keep them open. But Lyondell just closed down a 100-plus-year-old heavy crude refinery on the Houston Ship Channel because it just doesn’t make any sense to reinvest in it. And it was going to require $750, $800 million of new capital investment just to keep the plant operating at par,” said Hirs.

What’s next:

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Stocks for several oil companies did increase on Monday. Chevron, at one point, had a 10% stock price surge, mainly because Chevron is the only U.S. company operating in Venezuela. Other energy-related companies also saw an increase, like Exxon, as well as industry suppliers like Baker-Hughes and Halliburton. 

The action on Wall Street came after President Trump said he wants energy producers to pay for the oil production rebuild. Hirs described the administration’s plans as being “naive.”

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Past attempts to rebuild another country’s oil infrastructure seem to back up the doubts raised by Hirs. In 1989, after the Soviet Union collapsed, companies like Exxon went in to rebuild — only to get kicked out later by the Russians. Hirs also noted the rebuilding effort in Iraq, started by President George W. Bush, hasn’t returned production there to pre-war levels. And it’s the same story for Libya, which was done under President Obama.

The Source: Information from interviews conducted by FOX 7 Austin’s Rudy Koski and previous coverage

AustinTexas PoliticsDonald J. Trump
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Austin, TX

Vibe Coding the Vote: Austin Founder Launches AI Election Tool

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Vibe Coding the Vote: Austin Founder Launches AI Election Tool


Early voting is wrapping up for the midterm election, and Election Day is March 3rd.

With federal offices, statewide races, and local propositions on the ballot, it’s a packed slate. And for many voters, preparing can feel overwhelming.

Josh Baer knows that feeling well.

“Every year I put an hour on my calendar or two to where I’m supposed to get ready to vote,” Baer said. “I’m supposed to read the voting guides and kind of get prepared. And to be honest, it never seems to work. I always just actually don’t feel very prepared.”

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Baer is the founder and CEO of Capital Factory, a startup accelerator and investment hub. This year, instead of struggling through the ballot, he turned to artificial intelligence.

He gave AI two specific instructions.

“I said, one, go download all the best nonpartisan voting guides so that you can read all of them and know what’s going on,” Baer explained. “And then two, I said, interview me so you understand my kind of voting preferences. And then tell me who I should vote for and why.”

Within seconds, the AI generated a nine-page report. It broke down every race and proposition, recommended who he should vote for, and explained why. It also created a condensed cheat sheet for Election Day.

“It was really amazing,” Baer said. “And I felt the most prepared I’ve ever felt going into voting.”

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That experience sparked a bigger idea.

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Baer decided to build a website so others could do the same thing. He began what’s known as “vibe coding,” using AI tools to help create the platform.

“It took a few days of me tinkering around with it, but really just from that prompt, I got this incredible website where anybody can go and do the same thing I did,” he said. “And then I said, make it safe. Ensure it’s nonpartisan. Make sure it’s open, and people can trust it.”

The result is TXVotes.app.

Baer says Anthropic’s Claude AI handled much of the heavy lifting behind the scenes. But he didn’t stop there.

He also asked other AI systems — including OpenAI’s ChatGPT, xAI’s Grok, and Google’s Gemini — to review the site and suggest improvements. He then used their feedback to refine the tool.

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Baer says privacy and transparency are central to the app’s design.

“You can look at the website and see how it works and why it works,” he said. “But most importantly, in just about five minutes, you can be the most prepared you’ve ever been for any election you’ve walked into.”

As early voting continues, Baer hopes the tool can make researching the ballot faster, easier, and less intimidating for voters across Texas.



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A total lunar eclipse will turn the moon blood red on Tuesday

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A total lunar eclipse will turn the moon blood red on Tuesday


A blood-red moon will soon grace the skies for a total lunar eclipse — and there won’t be another until late 2028.

The spectacle will be visible Tuesday morning from North America, Central America and the western part of South America. Australia and eastern Asia can catch it Tuesday night. Partial stages of the eclipse with small bites taken out of the moon can be seen from Central Asia and much of South America. Africa and Europe will be shut out.

Solar and lunar eclipses happen due to a precise alignment of the sun, moon and Earth. There are between four and seven a year, according to NASA.

The eclipses tend to follow each other, taking advantage of the sweet spot in the celestial bodies’ orbits. Tuesday’s total eclipse of the moon comes two weeks after a ‘ring of fire’ solar eclipse that dazzled people and penguins in Antarctica.

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During a total lunar eclipse, the Earth is between the sun and full moon, casting a shadow that covers the moon. The so-called blood moon looks red because of stray bits of sunlight filtering through Earth’s atmosphere.

The show unfolds over several hours, with totality lasting about an hour.

Compared to a solar eclipse, “the lunar eclipse is a little more of a relaxed pace,” said Catherine Miller at Middlebury College’s Mittelman Observatory.

For those in the path, there’s no need for any special equipment to observe — just a clear, cloudless view of the sky.

Use a forecasting app or any online celestial calendar to look up the exact timing for your area. Venture outside a few times to see Earth’s shadow darken the moon, eventually revealing the reddish-orange orb.

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“You don’t have to be out there the whole time to see the shadows moving,” said astronomer Bennett Maruca with the University of Delaware.

There’s a partial lunar eclipse on the docket for August, visible across the Americas, Europe, Africa and west Asia.

While most people are looking forward to seeing the eclipse, throughout history — many people saw eclipses as omens of doom. Some superstitions and fears still exist. NBC 5 producer Sara Sanchez learned more from historians and eclipse experts.



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Austin Animal Services Hosts Free Spay/Neuter Clinic

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Austin Animal Services Hosts Free Spay/Neuter Clinic


Austin Animal Services is hosting a free, high-quality, high-volume spay/neuter for cats and dogs now through March 2 in North Austin.

The five-day clinic, which is being held in partnership with Greater Good Charities, is taking place at 11580 Stonehollow Dr., Suite 160. Registration and drop-off begin on-site each day from 7:30-10 a.m. or until capacity is reached.

In addition to free spay/neuter surgeries, pets receiving surgery will also receive vaccinations, flea and tick prevention, and microchips, ensuring that they return home healthier and better protected.

Spaying and neutering is the most effective tool in preventing unplanned litters and reducing the number of stray and surrendered animals entering local shelters. Managing overpopulation helps individual owners and also strengthens community health by reducing roaming animals, easing shelter overcrowding, and decreasing long-term strain on animal welfare resources.

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This is the seventh free clinic the city has hosted since 2024. The previous six clinics provided spay/neuter services to more than 6,000 pets. The upcoming clinic is expected to complete approximately 1,200 surgeries in just five days. It is a significant investment in prevention that helps reduce future shelter intake and supports responsible pet ownership across Austin.

High-volume, high-quality spay/neuter clinics offered at no cost are rare, and many pet owners face procedure costs ranging from $75 to several hundred dollars, along with wait times that can stretch for weeks or months. This clinic removes those barriers by providing same-day services at no charge.

“This clinic is about prevention,” said Austin Animal Services Director Monica Dangler. “When we provide accessible spay and neuter services, we’re helping families care for their pets while also reducing strain on shelters like ours and improving safety across our community.”





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