PERMIAN BASIN (NEXSTAR) – The Omicron variant of Covid-19 has investors in the energy sector watching closely.

They’re hoping for the best and planning for the worst-case scenario.

OPEC+ decided to boost oil production, which is good for business.

But, if the new variant triggers new restrictions and lockdowns, it could cost production millions of barrels a day. Recovery from Covid-19 has been slow and steady.

Kyle Mcgraw, the former chairman of the Permian Basin Petroleum Association, says it’s been trending positively.

“Before Covid, the world was about 100,000,000 barrels a day of consumption and supply,” said McGraw. “Covid hits, we go into 2020 and we dropped from 100,000,000 barrels of oil consumption down to 91,000,000 barrels.”

Currently, production sits at about 97,000,000 barrels a day.

“Covid really affected consumption,” adds McGraw.

Depending on how serious the Omicron variant of the coronavirus is, we might see some slight setbacks when it comes to oil production.

Oil prices dropped this past Monday because the industry is uncertain about the effectiveness of vaccines against Omicron.

Brent crude dropped about 75 cents to less than $75/barrel on Monday.

This price drop comes on the heels of OPEC+ which decided earlier this month to continue to increase oil production, despite the uncertainty of the Omicron variant.

This could lead to fear and speculation in the markets.

“You need an economy burning fuel, people driving to work, people and trucks moving on the on the highways, airplanes flying around the globe,” McGraw says. “When all that slows down, it affects your consumption.”

With the uncertainty surrounding the global pandemic, the markets could be more volatile; but, they aren’t.

McGraw says markets have adapted to the uncertainty during the global pandemic and he expects this to continue.