Report: Texas Spearheading U.S. March Toward Energy Dominance
A new report from the Texas Oil and Natural Gas Association (TXOGA) shows the vital role that Texas plays in U.S. energy development, as well as the billions of dollars in investment going to Texas operations in each stage of oil and gas development. By quantifying the investment, projects and business deals taking place in the Texas’ upstream (exploration and production), midstream (pipelines and transport), downstream (petrochemical manufacturing and refining) and energy export sectors, this report shows Texas as the main driver of “energy dominance” in the United States.
Leading off with a focus on upstream development, this report reaffirms the Lone Star State’s positon as the top oil and natural gas producing state in the nation, with the Permian Basin as its crown jewel. According to the report, the Permian’s average crude oil production of 2.4 million barrels per day last year was greater than the individual average crude oil production from nine of the 14 OPEC countries – including Qatar, Venezuela and Libya. Additionally, the report notes that last year the Permian accounted for over $25 billion in deals, equivalent to over 40 percent of total upstream deal value in 2016.
With such incredible numbers, TXOGA President Todd Stapes accurately described the implications of Texas oil and gas production on a national and international scale, stating in the press release:
“Our nation’s ability to achieve and sustain energy dominance rests here in the heart of Texas…Thanks to rich natural resources, advances in technology, and the know-how to capitalize on tremendous opportunity, Texas is helping to make the United States the global energy leader.”
In addition to production, Texas is also the focus of considerable investment in infrastructure, such as petrochemical manufacturing plants, pipelines and export facilities. According to the report, 134 petrochemical projects have been announced along the Texas Gulf Coast, projected to generate over $70 billion of potential investment. Additionally, just two midstream deals which took place in April of this year accounted for $3.5 billion in deal value. In fact, if the new pipelines planned to connect the Permian with Corpus Christi and the Gulf Coast are completed, they could generate over $6 billion in investment and support more than 60,000 jobs.
Other highlights from the report include:
- The Permian Basin accounts for 45 percent of total onshore oil production in the lower 48 states.
- Around half of all active onshore rigs in the U.S. are operating in the Permian.
- A single day of natural gas production in the Eagle Ford could meet the natural gas needs of over 230,000 U.S. homes for one month.
- Petrochemical manufacturing and refining represent $240 billion in investment in the Gulf Coast region, with a majority of that investment taking place in Texas and Louisiana.
- Ships carrying about 22 million barrels of oil for export left the Port of Corpus Christi in the first quarter of 2017, meaning Corpus Christi accounts for about 30 percent of the country’s total crude exports.
Overall, while no one would dispute the importance of Texas oil and natural gas to U.S. production and energy security, this report shows the sheer magnitude of the role it plays. Moreover, TXOGA’s report illustrates that even in the face of a difficult commodity market, Texas oil and natural gas has not only survived, but continues to thrive.