Oil: Production data for April show how fracking has shattered not only the shale rock in formations like Texas' Eagle Ford and Permian Basin but also the myths of "peak oil" and petroleum as an energy source of the past.

As Mark Perry notes on his Carpe Diem blog, Texas produced an average of 2.45 million barrels a day (bpd) of crude oil in April, according to the Energy Information Administration (EIA). That's the highest average daily output for Texas in any month since April 1985 — 28 years ago.

In only 2-1/2 years, the Lone Star State has doubled its crude output, making it what Perry dubs Saudi Texas and reversing a 23-year decline that fueled speculation that the maximum rate of petroleum extraction has been, or will soon be, reached.

As of February, the most recent month for which international oil production data are available, Texas would be the 12th largest oil producer in the world if it were a separate country, only slightly behind Kuwait and Venezuela. This is due to an oil boom that's added the equivalent of the Bakken formation in North Dakota to the state's output in just the past 16 months.

At the current pace of output gains, Texas' production will likely surpass 3 million bpd by year-end, pulling it ahead of Venezuela, Kuwait, Mexico and Iraq to become the equivalent of the ninth largest oil-production "nation" in the world.

The Eagle Ford shale formation, a 400-mile-long, 50-mile-wide, crescent-shaped field in the south central part of the state, is still brimming with crude. Its production in March rose 77% from a year earlier to 529,900 bpd, the Texas Railroad Commission reported.

This of course has contributed to a job boom, just as in North Dakota. Over the 12 months ended in May, Texas payrolls swelled by 325,000 positions, equivalent to a 3% annual increase. Every business day over the past year, almost 1,500 new jobs were created in the Lone Star State.

A report by the University of Texas, San Antonio, showed that in 2011 alone Eagle Ford supported 38,000 full-time jobs, generated $10.8 billion in gross regional product and poured millions into state and local tax coffers.

The shale oil and gas boom unleashed by fracking — short for hydraulic fracturing — has saved the Obama economy from complete collapse.

"Abundant low-cost energy is stimulating a revival of manufacturing in the U.S. as well as increased American economic competitiveness," countering what otherwise is "a time of stubbornly high unemployment," notes energy expert Daniel Yergin.

By 2020, according to Yergin, shale gas alone is expected to support 4 million jobs, up from 1.7 million today. That's the year the U.S. (and Texas) will pass up Saudi Arabia as the world's leading oil exporter, according to the International Energy Agency.

None of this is due to the energy and environmental policies of the Obama administration.

Look no further than the announcement by the Fish and Wildlife Service that the dunes sagebrush lizard — a three-inch-long reptile native to the Southwest — "faces immediate and significant threats due to oil and gas activities and herbicide treatments" and that the service has initiated the process to get it listed under the Endangered Species Act.

If the dunes sagebrush lizard had been granted endangered status, oil and gas production in the Permian Basin in New Mexico and Texas would be threatened.

As it is, the oil boom continues, providing life support to our beleaguered economy and bringing dismay in foreign capitals from Moscow to Riyadh.



Read More At Investor's Business Daily: http://news.investors.com/ibd-editorials/070213-662299-texas-eagle-ford-shale-sparks-boom.htm#ixzz2XzJ3MmZw 

 


Comments

02/22/2016 9:56am

The oil consumption figures published in the Review comprise inland demand plus international aviation and marine bunkers and refinery fuel and loss. Consumption of biogasoline (such as ethanol), biodiesel and derivatives of coal and natural gas are also included.The consumption of oil products are classified in thousand barrels per day as: light distillates, middle distillates, fuel oil and others.Nice article you have shared. Read more at gaslicht.com

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07/29/2016 12:03am

Oil makes the changes in the country performances. Many countries have some source of energy like Saudi Arabia ND Iraq etc. The stay of taxes also a largest oil producer after Kuwait. Its might come at the 2nd largest oil producer. This state produce average 2.45 million barrel oil per day in April. This make taxes a big oil market.

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