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Texas oil and natural gas industry continues to break records


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From The Center Square


Texas’ oil and natural gas industry broke new production records in May, continuing a trend in recent months and years.

Texas’ production of oil, natural gas, and natural gas liquids (NGLs), refinery activity and exports reached new record highs last month, according to a new analysis published by the Texas Oil & Gas Association (TXOGA).

The industry produced a record-high 5.7 million barrels per day (mb/d) of crude oil in Texas, a record 32.5 billion cubic feet per day (bcf/d) of natural gas marketed production and 3.5 mb/d of NGLs, according to estimates made by TXOGA’s Chief Economist Dean Foreman, Ph.D.

This is after the Texas oil and natural gas industry established new monthly records in March, according to U.S. Energy Information Administration (EIA) and U.S. International Trade Commission data. In March, Texas reported a record-high NGL field production of 3.7 million mb/d – the highest on record in history – more than doubling in-state consumption, according to the data.

Crude oil production topped 5.6 mb/d; natural gas marketed production topped 32.3 bcf/d. Texas refinery activities also reach a record-high net production of 5.5 mb/d.

Texas’ production of oil and natural gas is unparalleled. No other state is producing the volume that Texas is.

This is after Texas’ petroleum products exports exceeded 4 million barrels per day for the first time in history last December.

Since then, the Texas oil and natural gas industry has sustained five consecutive months of exporting petroleum products of more than 4 million barrels per day. In the first quarter of 2024, Texas exported nearly $57 billion worth of petroleum products.

The majority of LNG exports went to European and Asia Pacific countries; the majority of crude oil and hydrocarbon gas liquids were exported to Asia Pacific countries, according to the data.

Foreman said that Texas’ record-setting performance has continued “on the heels of remarkable productivity gains,” with rig productivity in May increasing by more than 20% year-over-year, according to EIA estimates. “As a result, Texas has continued to gain market share amid U.S. oil and natural gas production through the first half of 2024. U.S. energy security increasingly depends on Texas, and Texas has stepped up like none other.”

Projections for June show Texas’ production remains historically strong, holding at 5.7 mb/d of crude oil, 3.6 mb/d of NGLs, and 32.4 bcf/d of natural gas marketed production, according to Foreman’s estimates.

In the first half of 2024, Texas produced an estimated nearly 43% of all domestically produced crude oil and more than 28% of all domestic natural gas marketed production, according to TXOGA estimates.

Thermal and dispatchable sources of energy, primarily natural gas, are generating the majority of electricity Texans use through Texas’ grid managed by the Electric Reliability Council of Texas (ERCOT). During Winter Storm Heather, from Jan. 13-16, thermal and dispatchable sources generated as much as 95% of ERCOT’s electricity.

During another high demand period, from March 21-22, thermal and dispatchable sources, primarily natural gas, generated over 90% of ERCOT’s electricity for nine consecutive hours, averaging 91.8% of the region’s power, according to ERCOT and EIA data.

“These new records are a testament to Texas’ role as a national and global energy leader,” TXOGA President Todd Staples said. “Amidst growing global instability and energy demand that is expected to nearly double by 2050, oil and natural gas continue to serve as the bedrock of our energy mix, providing affordable reliable energy to meet our state, nation, and the world’s needs.”

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Trump’s Promise Of American Abundance, Fueled By ‘Liquid Gold’

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From the Daily Caller News Foundation



One of the brightest nuggets of policy in Donald Trump’s July 18 acceptance speech to the Republican convention in Milwaukee was his ode to “liquid gold.” That is, oil.

As part of his inflation-fighting plan, Trump offered a gleaming solution: increase energy production, thereby decreasing energy prices. “By slashing energy costs,” Trump declared, “we will in turn reduce the cost of transportation, manufacturing and all household goods.”

He continued: “We have more liquid gold under our feet than any other country by far. We are a nation that has the opportunity to make an absolute fortune with its energy.”

Indeed. According to the Institute for Energy Research (IER) technically recoverable oil resources in the U.S. total 2.136 trillion barrels. At the current price of around $80 a barrel, that’s some $171 trillion. And so, Trump concluded, “we will reduce our debt, $36 trillion.”

As former Alaska governor Sarah Palin would say, “You betcha.” In Palin’s Alaska, oil is so abundant, relative to the population, that everyone gets a check from the state. Last year, it was $1,312. For a family of four, that’s more than $5000. Our goal should be that every American gets such an energy dividend.

Moreover, the abundance of America’s carbon fuels is not limited to oil. According to IER, we have 3.391 trillion cubic feet of natural gas. That’s worth $165 trillion.

To be sure, these staggering dollar totals can’t be counted directly against the national debt—or in support of some future tax cut. Yet every dollar of our energy assets would contribute to the economy, and if even 10  percent of the humongous total could be available to the public, we could, in fact, pay off the national debt.

Moreover, thanks to fracking and other enhanced recovery techniques, we keep finding more energy: Human ingenuity has upended old beliefs about energy shortages, ushering in an almost Moore’s Law-ish surge in production.

Indeed, there’s so much oil and gas (and coal) that an emerging school of thought holds that carbon fuels aren’t “fossil” at all, but rather, the product of earth’s vulcanism. The core of this earth, after all, is the same temperature as the surface of the sun. Perhaps all that heat is cooking something.

In any case, we keep finding more oil, and not just in the U.S.

So how, exactly, do we take advantage of this planetary cornucopia? As Palin said, as Trump said, and as the convention crowd chanted, “drill, baby, drill.”

Okay, but what about climate change? Most Republicans don’t worry too much about that, but if Democrats do, they should be reassured that we can capture the carbon and so take it out of the atmosphere. Trees and other green vegetation have been capturing carbon for eons; the element is, in fact, vital to their very existence. Similarly, the human body is 18 percent carbon. Yes, all of us ourselves are carbon sinks.

So we, being smart, can capture vastly more carbon — capturing it in everything from wood to cement, from plastics to nanotubes. These in turn can be landfill, construction materials — maybe even a space elevator.

We can, in fact, establish a a circular carbon economy: carbon fuels extracted, burned, and then recycled back into feedstocks. By this reckoning, carbon fuels are renewable. Such creative thinking can power all those energy-hungry data centers on which Big Tech and AI depend. So there’s the makings of a bipartisan “Grand Carbon Bargain,” uniting mostly blue-state tech with mostly red-state energy. More energy + more tech = more wealth for all.

In Milwaukee, Trump spoke of American “energy dominance,” and that’s great. But with all the energy we can produce and consume, we can speak of economic abundance — and that’s even greater.

James P. Pinkerton served in the White House domestic policy offices of Presidents Ronald Reagan and George H.W. Bush. He is the author, most recently, of “The Secret of Directional Investing: Making Money Amidst the Red-Blue Rumble.”

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The Flood Of Energy Absurdities Never Slows

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From the Daily Caller News Foundation



I often write about absurdities in the energy space, the kinds of stories in which nothing seems to make sense and which result in the wasting of massive amounts of money on rank boondoggles.

Indeed, I maintain an entire Substack focused on what is an amazingly target-rich environment.

Despite enjoying such a wealth of absurd potential content, I found myself suffering from a bit of writer’s block Tuesday morning — thanks in large part to all the breaking news about debates and attempted assassinations  permeating our society in recent days. But that was before two gloriously absurd stories popped into my in-box.

The first of these absurdities comes to us from the ritzy Massachusetts island of Nantucket, where debris from one of President Joe Biden’s vaunted offshore wind monstrosities — speaking of rank boondoggles — was found littering the beaches in recent days. The Nantucket Current reports that the debris, apparently hard fiberglass material from a broken blade, originates from the Vineyard Wind 1 offshore project, whose first ten massive turbines were activated less than a month ago.

So much for that advertised 30-year life, huh?

The operators of Vineyard Wind said the debris is the result of an “offshore incident” in which a blade suffered damage. The company also characterized the debris as “non-toxic fiberglass fragments,” adding that they are “not hazardous to people or the environment.”

No word from the company on the nature of this “incident,” or on how frequently Nantucket residents can expect such litter from their 62 government-subsidized, 850-feet-tall turbines (almost the height of the Eiffel Tower) and blades to wash up on their beaches. But the fact that the first “incident” came during the first month of operations was not exactly encouraging.

Then the story got even worse for Vineyard Wind: reported Tuesday that Nantucket officials made the decision to close the beaches to public access due to dangers from what they called “floating debris and sharp fiberglass shards” that were part of the debris. Worse still, the Federal Bureau of Safety and Environmental Enforcement announced late Tuesday the development’s operations have been “shut down until further notice” due to the safety hazards to the public.

Despite the inconvenience and potential hazards caused by Biden’s offshore wind boondoggles, we can be sure that Nantucket residents will enjoy paying their future power bills that are being inflated by the power-provision guarantees deftly negotiated by their state leaders. It is, after all, a small price to pay for such a glorious virtue signaling opportunity.

The next story comes to us from a report at detailing a new study predicting that earthquakes will now be caused by the all-knowing, all-seeing, all-causing, all-powerful boogeyman we refer to as “climate change.” No, really, I swear I’m not making that up. Promise.

It is a real report, headlined, “Will we have more earthquakes because of climate change?”

Naturally, the story suggests this will be the case. What else would a good climate alarmist say? It is a requirement for researchers to blame literally every bad thing in our lives on climate change because, if you don’t, you won’t get that next government grant, now, will you?

That is the game. It has been the game for 30 years now, and many believe the net effect has been the increasing corruption of what we call “science.” The raising of outlandish claims such as this in glaring headlines or by hyperventilating weather people on our local news channels is exactly why a constantly rising percentage of the population holds the field of climate “science” in contempt.

One X user who tweeted this story out said: “I miss the days when we used to blame witches.” That is really funny. I wish I had thought of it first.

I know this frustrates all the alarmists out there, but I am just the messenger here. If you want the winds of public attitudes to ever shift in your direction, you are going to have to stop spreading ridiculous nonsense like this. All your cynical efforts to raise alarm are backfiring, and it could not happen to a more deserving bunch of people.

David Blackmon is an energy writer and consultant based in Texas. He spent 40 years in the oil and gas business, where he specialized in public policy and communications.

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