Texas leads the nation in energy production. Across every part of the great state of Texas there is energy potential and production. With the second-largest population and the second-largest economy in the nation after California, second only to Alaska in land area, Texas is not playing second in the energy sector.
According to The Perryman Report, “The energy sector has long been a major component of the Texas economy, generating substantial economic activity and opportunities. For more than a century, the state’s vast reserves of oil and natural gas have contributed to business activity and job creation. Production has risen sharply in recent years, and with improved recovery on each well, the cyclical nature of oil and natural gas exploration and production has diminished. In addition, US exports of crude oil and liquefied natural gas (LNG) are rising. In fact, the growth in production in the Permian Basin is creating a global transformation of petroleum market.”
Texas production has risen dramatically in recent years, up about 500% since 2010. These increases began after decades of falling production and talk of “peak oil”, Perryman reported. The increased production levels have led to a reduction in the need for imports. The Houston Chronicle recently reported, “That surge in production has helped drive oil imports to the U.S. Gulf Coast to the lowest level in more than three decades, according to a report from the Energy Department. In March, imports to the Gulf Coast averaged 1.8 million barrels a day, a more than 70 percent decline since 2007.”
Texas Has More than Oil Potential
According to the U.S. Energy Information Administration, “The state provides more than one-fifth of U.S. domestically produced energy. Crude oil and natural gas fields are present across much of the state, and coal is found in bands that cut across the eastern Texas coastal plain and in other areas in the north-central and southwestern parts of the state. Texas also has abundant renewable energy resources and is first in the nation in wind generated electricity. With a significant number of sunny days across vast distances, Texas is also among the leading states in solar energy potential. Geothermal resources suitable for power generation are present in East Texas, and uranium, the fuel for nuclear reactors, has been found in South Texas.”
Texas’ Energy Stats Highlights
- Texas leads the nation in crude oil reserves and production. The state has two-fifths of the U.S. crude oil proved reserves and produces more than 40% of the nation’s crude oil, more than any other state and exceeding that of all the federal offshore producing areas
- One-fourth of the nation’s proved natural gas reserves and about three-tenths of the 100 largest natural gas fields are located, in whole or in part, in Texas. The state leads the nation in natural gas production, accounting for nearly one-fourth of U.S. gross withdrawals in 2017
- Texas produces more electricity than any other state, generating almost twice as much as Florida, the second-highest electricity-producing state.
- Renewable energy sources, primarily wind, contribute more than one-sixth of the net electricity generated in Texas. The state provided almost one-fifth of the total U.S. utility-scale electricity generation from all nonhydroelectric renewable sources in 2018, more than any other state.
The Nation’s Standing
The U.S continues to bolster its position as a global leader in oil production and reserves. According to ETF Trends, the U.S. is producing the most crude oil in the world, and we now have the largest reserves. “In its latest annual report of world recoverable oil resources, Rystad Energy finds that the United States currently holds 293 billion barrels of recoverable oil resources,” reports OilPrice.com. “This is 20 billion barrels more than Saudi Arabia and almost 100 billion barrels more than Russia.”
The Houston Chronicle reported, “U.S. oil production likely hit a record of 12.5 million barrels per day in May — about 200,000 barrels per day above Energy Department estimates — and should grow to 13.4 million barrels a day by the end of this year, according to the Norwegian energy research firm Rystad Energy. By the end of next year, U.S. oil production should hit 14.3 million barrels a day.”
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The Perryman Report
Federal Reserve Bank of Dallas – https://www.dallasfed.org/-/media/Documents/research/energy/energycharts.pdf?la=en
U.S. Energy Information Administration – https://www.eia.gov/state/analysis.php?sid=TX
Federal Reserve Bank of Dallas – https://www.dallasfed.org/research/energy/indicators/2019/en1906.aspx