Monday, February 25, 2019

Texas Sets New Record for Oil Production


Look at the size of the Permian Shale Basin. It has been totally liberated by the advent of horizontal drilling  which can tap individual zones over what is thousands of feet of productive potential.
The industry mastered the technology in North Dakota in the huge Williston Shale and it looks like they are sustaining production there as well.
This is why the USA has rotated back into the world's largest oil producer. It is also why peak oil is now far on the horizon.  All that left behind oil has become at least prospective.
Texas Sets New Record for Oil Production

Brian Wang | February 14, 2019

The Texas Independent Producers & Royalty Owners Association (TIPRO) reported oil production in Texas totaled a record 1.54 billion barrels (bbl) in 2018 which surpassed a previous record of 1.28 billion bbl set in 1973.

If Texas were a country it would be the fourth largest oil producer after the USA, Saudi Arabia and Russia. Texas passed Iraq and Iran in oil production.

There has been some talk about the US stopping oil and gas production. If such an energy policy were attempted, it is clear that Texas would secede from the USA to continue producing oil and gas.

The second largest producer of oil in 2018 was North Dakota (443 million bbl), followed by New Mexico (226 million bbl), Oklahoma (187 million bbl), and Alaska (175 million bbl). Total natural gas production in Texas was 8.8 trillion cubic feet (Tcf) in 2018, compared to 8 Tcf produced in the previous year. The second largest producer of natural gas last year was Pennsylvania (6.1 Tcf), followed by Alaska (3.2 Tcf), Louisiana (2.7 Tcf) and Oklahoma (2.3 Tcf).

The U.S. oil and gas industry employed 880,681 professionals in 2018, an increase of 45,354 jobs compared to 2017. The industry paid a national annual wage averaging $112,712 last year, more than double average private sector wages. Payroll in the U.S. oil and gas industry totaled $99 billion in 2018, an increase of 6 percent from the previous year. Additionally, total U.S. goods and services purchased in 2018 by the oil and gas industry exceeded $530 billion.

In 2018, Texas led the country in oil and gas industry employment with a total of 352,371 jobs, an increase of 26,706 jobs from 2017 numbers.

The oil and gas independent producers drive the energy economy directly benefiting Texas and its residents. Between 2010 – 2018, total state taxes and state royalty payments paid by the oil and gas industry in Texas exceeded $100 billion. These funds have continued to support all aspects of the state economy, including schools and education, infrastructure investment, water conservation programs and first responders, to name a few. Additionally, Texas is home to approximately 2.5 million mineral owners, of the 12.5 million mineral owners in the U.S., with oil and gas royalties generating billions of dollars for Texas families last year.

The 2019 State of Energy Report is at this link.

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