Crude oil theft in the Permian Basin costs billions annually as global prices rise

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(NewsNation) — Concern is growing in the energy sector across the Southwestern United States amid rampant crude oil theft.

In Martin County, Texas, approximately 500 barrels of oil are going missing every week, resulting in over $1.7 million in losses annually at last year’s average price of $65 per barrel, according to Bloomberg. Amid the war in the Middle East, oil prices have climbed, which could further exacerbate the problem.

Reports of theft have persisted for years in the Permian Basin, the largest oil field in the United States, located in parts of West Texas and New Mexico, but producers and law enforcement say the problem has intensified.

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Some estimates put oil theft in Texas at around $1 billion annually, Bloomberg reported. Ed Longanecker, president of an Austin-based industry advocacy group, believes it could be as high as $2 billion. Those figures don’t account for theft in New Mexico’s smaller portion of the basin.

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The problem extends beyond crude oil. Of those reporting theft, 61% reported crude oil theft, 58% said piping, valves and wiring were taken, and 39% said equipment was stolen.

The FBI formed a task force in 2008 primarily to address equipment theft in the basin, but has shifted its efforts in recent years to focus on crude oil, Supervisory Special Agent Briton Goad told Bloomberg.

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In 2025, Gov. Greg Abbott signed legislation that established a state petroleum product theft task force.

“We are bringing the full weight of the law to crack down on oil theft in the Permian Basin to protect the critical role energy development plays in fueling our economy,” Abbott said.

In 2026, Rep. Tony Gonzalez reintroduced the Protect the Permian Act, which aims to increase criminal penalties for involvement in oil and equipment theft.

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"The old joke in the oil field used to be that if it wasn't bolted down, it would get stolen," Michael Lozano, who runs government affairs and communications for the Permian Basin Petroleum Association, said, adding, "Now they're unscrewing the bolts, and they're stealing those too."

A recent Federal Reserve Bank of Dallas survey of oil executives showed that at least 60% said their operations were affected by oil thefts.

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Bloomberg described one method thieves use to steal oil:

Today's Permian Basin thieves might instead connect vacuum trucks to storage tanks in broad daylight and siphon it out, sometimes covering their license plates or swapping vehicles to evade law enforcement, authorities say.

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