Report: Texas Still Best Region in the World for Oil & Gas Investment
As everyone knows, the oil and gas industry has an impressive record of being good to the people of Texas, consistently generating benefits such as jobs, money for education, and tax dollars. Equally impressive is the industry’s resilience in Texas, especially in a price downturn as harsh as today’s. Despite the tough times, Texas has managed to continue to bring in big bucks for new projects and exploration.
This week, the Fraser Institute (Canada) released its annual survey of petroleum sector executives and found that Texas is still the “most attractive jurisdiction for oil and gas investment in the world.” This annual report considers a wide range of factors when creating the ranks, such as volume of reserves, taxes and regulatory obligations, to name a few.
The Fraser Institute took into account 126 jurisdictions worldwide to make its 2015 list. This means that the Lone Star state beat out areas such as Qatar, Alberta, and the United Arab Emirates, who are known for their enormous energy numbers, to keep its top spot on the list. According to senior director of the Fraser Institute Ken Green:
“Texas remains a beacon of stability in the oil and gas sector with its wealth of proven reserves and clear and consistent regulatory environment”
The 2015 report includes another survey format, which analyzes how local regulations affect investment in different areas. Texas also ranks well on this list, and the state can be proud that it has a regulatory environment that fosters cooperation and attracts both inside and outside investment. Additionally, seven of the top 10 jurisdictions on this format of the survey are within the United States. Green gave kudos to the United States saying:
“The fact that the United States remains attractive for oil and gas investment is a testament to the individual states enacting coherent environmental protections while maintaining fair tax regimes and regulatory processes”
Texas easily scored the top spot on this list in 2014. However, one could argue that this year’s top spot is an even greater achievement due to the price uncertainty of late. Texas continues lead when it comes to the energy industry, from its increase in reserves to its continued innovation in the oil field. These latest investment rankings from the Fraser Institute remind us again that oil and gas production is still delivering impressive benefits to the people of Texas.