Texas leads US oil production
The growth in the energy sector is expected to continue to grow like gangbusters – led by Texas, according to Karr Ingham, a petroleum economist for the Texas Alliance of Energy Producers and creator of the Texas Petro Index, speaking at the Petroleum Club on the latest release of the index.Taxes on the production of oil and gas now making up about 25 percent of the total in Texas. The new production has certainly made it easier for the state to meet its spending targets, especially for education. The current Index is near an all time high.
“We would be the 14th largest oil producing country on the planet, if Texas were a country,” Ingham said. “You have the Permian producing 925,000 barrels a day and the Eagle Ford escalating to 540,000 barrels a day – that is just extraordinary.”
The Texas Petro Index was established in 1995 and reflects growth in several elements that drive the energy industry, including crude oil and gas prices, the rig count, drilling permits, well completions, oil and gas production rates and employment in the industry.
Well count: New wells proliferate across the Eagle Ford Shale
The Permian Basin and the Eagle Ford have helped make Texas the producer of almost half of all crude oil and a quarter of natural gas produced in the United States, Ingham said.
“The Permian is still the big dog on the block, in Texas – and nationally,” Ingham said. “It means Texas will maintain its position as the big dog on the block nationally.”
The index has gone through a three-year period of growth, Ingham said, as shale drilling spurred production.