Oil and gas: Good news, followed by good news
Published 8:08 am Friday, February 22, 2019
If Texans needed more good news — is there ever enough of that? — an appearance by members of the Texas Railroad Commission to the state Senate this week delivered the goods. The commission oversees the oil and gas industry in Texas.
Chairman Christi Craddick and Commissioners Ryan Sitton and Wayne Christian told the Senate Committee on Natural Resources & Economic Development on Wednesday what energy industry insiders have long known — things have never been better for this state.
Start with this number: 1 billion. Texas oil and gas production topped that in barrels in 2015 and 2017 as reports reveal production at a pace not seen in this leading energy-producing state for four decades. Look for more.
Add this news about reserves revealed in the Wolfcamp Shale and Bone Spring Formation in West Texas. Commissioners said it contains more than 46 billion barrels of oil, 7.6 trillion cubic feet of natural gas. That might be enough to support energy production in Texas for decades.
Reporter Richard Lee, who covers the Texas Senate, said Christian told the Senate panel, “The good Lord has given the state of Texas in the last two years the largest discovery of oil and gas in the history of the world” in those reserves. How much of that was Heaven sent and how much came from technological resourcefulness and industry of Texans may be up for theological debate. But it’s there, Texas is harvesting it and, as with any natural bounty, ought to do so safely and with respect for the environment. It is providing for us now and, used wisely, ought to provide for Texas for many years.
In his current newsletter, economist Ray Perryman describes oil and gas growth in Texas as “phenomenal.” Not only does it provide the state some 350,000 jobs with good pay, it also drives consumer spending around Texas. As oil and gas go, so goes Texas’ economy.
The Permian Basin is one of the most prolific energy-producing regions globally and production may double within five years. That, Perryman suggests, could make Permian production greater than that of any OPEC country, save Saudi Arabia.
What’s that mean for Texas? Here goes: Our population is on the young side and, if prepared, should benefit by the strength oil and gas provide to our state economy’s base. Exports of Texas energy products should pare down our nation’s trade deficit. Unemployment continues to decline for people who want and are prepared for jobs in a changing economy.
What’s it mean for Southeast Texas? This is refinery and liquefied natural gas country, and a robust energy industry fuels our local economy. But we have to foster a workforce through public education and community encouragement to ensure local people benefit fully.