Everybody wants or needs oil these days, and it just so happens Texas has plenty of it. A new report from the International Energy Agency (IEA) says worldwide supply and demand for oil have reached a record 100 million barrels per day. The supply is led by the surge in U.S. production--most of that coming from here in Texas--as well as growing production in places like Brazil and Canada, along with OPEC nations. The demand is coming largely from overseas, especially in petrochemicals used in manufacturing and production of things like plastics.
This is all great news for Texas. "Texas does well when the oil market does well, and the fact that global oil demand is high and continuing to increase is good for Texas jobs, tax revenue, and so much more throughout our economy," says Steve Everley, managing director at business consulting firm FTI Consulting. "The world is going to be using oil for a long time, and Texas is well positioned to capture more and more of that market."
In particular, the shale production in Texas is helping meet growing demand overseas. "We are, as a country, currently exporting about 2.1 million barrels of oil per day, and that is projected to rise to about 4 million barrels per day by 2020," says Everley. "Most of that is going to be coming from Texas."
The only possible drawback to this increased demand is the growing price of crude oil, now at a four-year high. That could strain economic growth and lead to higher prices at the pump for consumers. But for Texans, Everley believes the benefits to this oil boom far outweigh the drawbacks. "It's going to help us improve our balance of trade, create jobs and tax revenue, and do so much more for us all throughout the state," he says.