Joseph Norman, oilfield influencer and optimization consultant, said that conflicts in the Middle East, like the recent Israel-Iran incident, consistently impact oil prices and affect the cash flow of oil and gas companies reliant on futures and hedging. Norman was a guest on a recent episode of the Best of Midland Podcast.
“OPEC and what goes on in the Middle East wars have always affected the oil price, like forever, since I've known it,” said Norman on a recent edition of the Best of Midland Podcast. “Israel attacked Iran, and all of a sudden, the oil price jumped 5-6%. This literally changes your cash flow if you're an oil and gas company because you work off futures, and if you're hedging your bets, you work on a short-term or long-term hedge.”
“Most people are going to follow that WTI oil price, and they get paid based on that price,” Norman said. “Everything that affects the market affects us. The Middle East is a huge oil and gas market, and if there's ever conflict in that area, which there always is, it affects the oil price.”
Norman is an optimization consultant at FluidLevels, an oil and gas service company in the Permian Basin of West Texas. FluidLevels specializes in optimizing artificial lift systems to maximize production and prevent failures. He also runs the company’s YouTube channel, which highlights the oil and gas industry and the people involved in energy production.
Best of Midland Podcast is hosted by Ryan Shewchuk and Terra Avery. It is an extension of the broader Best of Midland program, which aims to support small, local businesses by showcasing them and the people behind them. Their website lists top businesses and upcoming live events happening in the area.
The podcast is available on Apple Podcasts and Spotify.