[JustTheNews] If Texas were its own country, it would already be the world's third-largest producer of natural gas and the fourth-largest producer of oil.The powerhouse of the U.S. energy sector—the Texas oil and natural gas industry—reached a new record production high in June and July, surpassing all-time highs set 30 and 40 years ago, according to an energy economics analysis published by Texas Oil & Gas Association.
The analysis, conducted by TXOG's Chief Economist Dean Foreman, Ph.D., shows that Texas' production of oil, natural gas, and natural gas liquids broke previous records and that resource reserves are expected to support decades of prospective production. It also highlights a range of records broken in May, also surpassing previous 30- and 40-year-old highs.
"Texas shouldered three quarters of U.S. oil production growth year-to-date through July, re-setting its production records in the process," Foreman said. "TXOGA's new analyses offer insight into the value chain and operational flows, showing Texas is the key enabler of regional U.S. production, transportation, refining and exports–and a source of dynamism amid global markets that have been searching for clarity this year."
"Texas has broken its production records and increasingly driven U.S. oil and natural gas production," the report states. Year-to-date through July 2023, Texas accounts for 43.3% of all oil production and 27.4% of all natural gas marketed production in the country.
The Lone Star state's oil production reached a record high 5.5 million barrels per day (mb/d) in June and July, while the report added that natural gas marketed production reached 31.4 billion cubic feet per day (bcf/d) in June before decreasing to 31.2 bcf/d in July.
These milestones are significant, TXOGA argues, because, "Texas drives U.S. oil and natural gas production, transportation and exports, thereby helping to sustain downward pressure on prices, foster investment and innovation, and augment reserves to support future production."
Because Texas' oil and natural gas reserves remain abundant, the industry is "supporting value chains with decades of prospective production," it says, also contributing to national reserves. The analysis found the reserves "remain abundant and continue to grow." Since 2016, Texas has accounted for over 40% of the nation's oil reserves and nearly 25% of natural gas proved reserves, according to U.S. Energy Information Administration data.
According to a U.S. Geological Survey, decades of potential growth are attributed to these proved reserves—led by Texas—in 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," Foreman said.
TXOGA President Todd Staples points out that, according to EIA projections, by 2050, the world's energy needs will nearly double.
