Austin, TX
Venezuelan oil reboot not expected to spur windfall in Texas
Texas reacts to Venezuelan leader being taken into custody
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.
AUSTIN, 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.
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:
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.
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.
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:
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.
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:
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.”
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
Austin, TX
Man shot and killed by police after pointing gun at people in Austin, Texas
Two police officers shot and killed an armed man after a brief foot chase in downtown Austin, Texas, hours after multiple people reported that he was pointing a handgun at people near a busy trail system, according to officials.
Police began receiving 911 calls shortly after 8 a.m. Saturday about a white man armed with a handgun near the trails around Lamar Boulevard and Cesar Chavez Street, according to Police Chief Lee Rogers. Callers reported that the man was pointing the weapon at multiple people throughout the area.
Officers searched the downtown area for several hours before encountering a man matching the description at about 11 a.m. He was initially on a scooter when officers approached and attempted to detain him and question him about the earlier calls.
The man left the scooter behind and ran away, leading officers on a short foot chase. Officers saw that he had a firearm and repeatedly ordered him to stop and drop the weapon, but he refused.
When the officers caught up with him, both opened fire and struck him. Rogers did not explain what immediately caused the officers to shoot, but said more than one round was fired.
Officers provided medical aid, but the man was pronounced dead from his injuries.
Rogers said he could not confirm reports that the man was homeless. The shooting is being investigated administratively with Austin Police Oversight and criminally by the department’s Special Investigations Unit and the Travis County District Attorney’s Office.
Austin, TX
3 Texas cities ranked among most affordable in the U.S. for renters
TEXAS — According to Redfin, a national real estate brokerage firm, the top three most affordable cities for renters in the country are in Texas. The firm released its study in 2025, which also lists the median incomes needed to afford the average rent.
Renters living in the Sawyer Heights neighborhood near downtown Houston say apartments in that area come with a hefty price tag.
“It’s not cheap to live in this city, especially with income the way it is,” said Evan Camp, a renter.
Jacinto Cepeda shares his sentiment, adding you get what you pay for.
“It’s just increasing in price if you want to live somewhere nicer or a little bit safer, I would say, it’s definitely on the pricier side,” Cepeda said.
However, Redfin’s report ranking the top 10 most affordable metros for renters across the country shows renters in the Houston metro area may be better off compared to other Texans. Austin, Houston and Dallas took the top three spots, respectively.
The study analyzes Census Bureau data on median incomes and average rent costs, based on the affordability criteria of renters spending no more than 30% of their income on rent.
“In the most recent American Community Survey, we found that, for the first time, the majority of renters in Harris County in Houston are cost-burdened, meaning they spend more than 30% of their income on rent,” said Dr. Stephen Sherman, an associate director of research at the Kinder Institute for Urban Research at Rice University.
Sherman says while some may consider Houston rent as more reasonable than New York City and Los Angeles, Harris County incomes have not kept up with inflation.
“When you start to look at how that compares to people’s incomes, how high eviction rates are, the quality of multifamily building here, you start to see that that cheery story has some cracks and fissures,” he said.
The Redfin study shows the typical U.S. renter earns nearly $9,000 less than the income needed to afford the median apartment. It shows a median rent in the Houston metro of $1,239, meaning the affordability required for annual income needed is closer to $50,000. As of December 2024, Houston’s median renter income was roughly $58,000, which was nearly $9,000 more than needed to cover the rent. Sherman says that means nearly half of renters don’t make enough.
“Apartment rents and home prices, as well, have stabilized, but when you look at incomes, especially after adjusting for inflation, they’ve actually gone down,” said Sherman, adding this is while expenses like groceries and gas have gone up. “Everything is a trade-off. You can find affordable places to live in Houston, but it might be in an older building in dire need of repairs.”
Cepeda said walkability is one thing he appreciates about the Heights area.
“It’s just a matter of where you’re willing to live where you’re willing to live, and how you’re willing to live is the most important thing,” he said.
Austin, TX
Texas reports dozens of cyclosporiasis cases tied to contaminated fresh produce
An outbreak of cyclosporiasis, an intestinal illness that can cause explosive diarrhea, has been confirmed in Texas, prompting health officials to urge extra precautions when handling fresh produce.
The Texas Department of State Health Services has confirmed 48 cases of cyclosporiasis across 10 Texas counties. State health officials say there have been no deaths linked to the outbreak so far.
There are no reported cases in Southeast Texas at this time, and Port Arthur officials say they have not received any reported cases from area hospitals or health care providers. Still, health officials say now is the time to take extra precautions.
Judith Smith, Port Arthur’s director of health services, said cyclosporiasis is caused by “a microscopic parasite that is usually found in contaminated food and contaminated water.”
Smith said contamination typically stems from floodwater or sewage water when produce is harvested, allowing parasites to transfer to produce long before it reaches consumers.
“I have not heard of an outbreak like this. It’s been a while. It might have been 2023, 2024, and so, you know, and of course, Texas is not immune,” Smith said.
Smith said foods that are eaten raw can pose a higher risk. “Those foods that are not cooked are the ones that really make you more at risk,” she said.
Health officials recommend washing raw produce, including lettuce, cilantro, raspberries and basil. They also recommend cleaning cutting boards, refrigerating fresh goods and throwing away any remaining produce after experiencing symptoms.
Symptoms can include watery diarrhea, fatigue, lack of appetite and a low-grade fever. “Those individuals that may have that watery diarrhea or really just more than two to three days should seek medical attention,” Smith said.
Testing can confirm the parasite, and early treatment can help prevent more serious complications, especially for children and elderly relatives. Health care experts recommend contacting a health care provider as soon as possible if persistent stomach cramps and other symptoms develop after eating fresh produce.
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