Texas could pass both Iran and Iraq next year in oil production as drilling costs fall and production explodes out of West Texas' Permian Basin, CNN reports.

The big picture: By next year, Texas' oil production is set to jump to 5.6 million barrels a day, up from 2.5 million a day in 2014. If Texas were a country, it would become the third-largest oil producer in the world — behind Saudi Arabia and Russia.

Iraq is producing 4.8 million barrels a day, while Iran is expected to see 3 million.

Yes, but: This oil boom comes with its own growing pains, according to CNN.