The U.S. Energy Information Administration projects that the world’s energy needs will nearly double by 2050 and the president of the Texas Oil & Gas Association says the Lone Star State will play a key role if politics don’t hold it back.
“Clearly Texas has the natural resources, manpower and infrastructure to meet not just our energy needs but the energy needs of our nation and that of a growing world,” TXOGA President Todd Staples said from Austin. “Policies and politics in Texas and across our nation will determine if we can be the trusted ally that the world turns to or if nations will have to look elsewhere for leadership on energy security.
“To that end we need bold policy at the state and federal levels to keep Texas the global energy leader.”
TXOGA Chief Economist Dean Foreman says in his monthly report that Texas’ production of oil, natural gas and natural gas liquids have just achieved new record highs and that resource reserves should support decades of prospective production.
Foreman cited a U.S. Geological Survey analysis that promises decades of potential growth from proved reserves led by the Permian Basin and Gulf Coast.
“Although the pathway from exploration through development and production inherently depends on economic considerations, it is clear that U.S. oil and natural gas have remained abundant and with Texas’ leadership these resources could remain the bedrock of American energy security for decades to come,” he said.
“Year to date through July Texas’ shares rose to 43.3 percent of oil production in the U.S. and 27.4 percent of natural gas marketed production. These numbers also represent Texas’ highest level of oil production for any month on record since 1981 and its highest level of natural gas liquids on record for any month since 1993.”
The economist said the state’s oil production reached a record high of 5.5 million barrels per day in June and July and its natural gas marketed production 31.4 billion cubic feet per day in June before decreasing to 31.2 bcf/d in July.
“Texas shouldered three-quarters of American oil production growth year to date through July, re-setting its production records in the process,” said Foreman. “TXOGA’s new analyses offer insight into the value chain and operational flows and show that Texas is the key enabler of regional U.S. production, transportation, refining and exports and a source of dynamism amid the global markets that have been searching for clarity this year.”