Texas is the 15th largest oil producer in the world, having reached that pinnacle in March, and is making gains on OPEC. Contrasting the year to year growth rates, US oil production fueled by dramatic increases in Texas increased 15% in 2012; OPEC production increased 3.6%.
The Energy Information Administration issued a report last week showing that the amount of oil the US imports has dropped from 886,000 barrels of light sweet crude per day in 2010 to less than 40,000 barrels per day in the early months of 2013.
Looper Reed & McGraw oil & gas legal expert J Wayne Ballew says there are “a combination of factors fueling the increase in oil production in Texas, the two major ones being the unprecedented levels of funding and then the unprecedented advances in technology that are unlocking these new reserves,” Ballew told KTRH.
The impact on Texas’ economy is dramatic.
“I can look out my window and see more cranes than I’ve ever seen in the Galleria area. But I think it doesn’t just touch those industries specifically focused on the oil and gas production industries,” Ballew continued. “It’s not a stretch to say it has touched every facet of business in Texas from housing to logistics to personnel to real estate and on and on.”
Wednesday and Thursday of this week Midland-based developer Energy Related Properties and architectural designer Michael Edmonds presented by-invitation-only business people in Houston and Dallas details of the 58-story Energy Tower being built in Midland.
Patrick Duffy is president of the Houston division of Colliers International, the real estate broker for the new Energy Tower, and told KTRH, “The amount of oil and gas in the Permian Basin is ten times greater than thought just ten years ago, and current projections are that oil production of the Permian won’t peak until about 2047.”
“We want the Energy Tower to be something that the people of Midland-Odessa and Texas in general can be proud of as it becomes an icon for what we believe is the home-base for energy security for the United States. This is a game changer. They now estimate 24% of the US oil reserves are in West Texas and all that activity is headquartered in Midland-Odessa. And what that means is that we can be less reliant on an unstable world. Between Canada, Mexico and what we can produce domestically in the US we can become net exporters of energy, which puts us in a much more stable position economically, we don’t have to rely on what has become an increasingly unsteady Middle East.”