US oil and natural gas production are currently experiencing an unprecedented era of growth. This is largely due to the Texas oilfield basins and new developments in the extraction technologies applied. With new extraction methods, the region has doubled its daily production over the last decade. With increases in the world’s demand for oil, higher production quantities led to the US becoming a 2018 net exporter of oil. Large-scale investments in the upstream and downstream infrastructure are now paying off for companies. And now, the region produces more barrels per day than Iraq or Iran.
History of Texas Oilfield Production
Since the days of the Texas Oil Boom, production in the area continued. However, it was only recently that Texas reached similar growth to the early 19th century. The primary contributing areas are the Permian Basin and East Texas Oil Field. Of these two, the Permian Basin’s production levels may rival the Ghawar Oil Field in Saudi Arabia in the future.
The Permian Basin produced 3.8 million barrels per day in 2018, compared to the 5 million barrels from Ghuwar. While it may appear the Permian is a long way away in reaching that total, consider this… In 2010, the basin only produced around 1 million barrels. The increase over the last decade largely arose from major international producers investing billions of dollars into the region. As such, commissioning new wells and developing the necessary support infrastructure.
Production Increases will Continue into the Next Decade
Recent geopolitical events in the Middle East drives the expansion of US and Texas oilfield production. Currently, producers export oil from the Texas region to Canada, Europe, Asia, and South America. As producers waited for greater takeaway capacities in the Permian Basin region, the number of drilled but uncompleted (DUC) wells grew exponentially. From less than 700 DUC wells in 2013, the region now boasts over 4000 DUC wells.
While the downstream infrastructure continues to receive investment in the form of transportation systems and export terminals, producers remain poised to capitalize on these developments. The USGS estimates that around 30 billion barrels of crude oil exists in the basin, and roughly 75 trillion cubic feet of natural gas remains. Production, therefore, will continue to ramp up as the world’s energy demands increase in developing nations and matured markets alike.
Texas Oilfields Shale Boom Economic Effects
The use of horizontal drilling and hydraulic fracturing led to the Shale Boom in Texas Oilfields. A recent study by the Federal Reserve Bank of Dallas indicates that the boom added 1% in overall growth to the US GDP between 2010 and 2015. This naturally leads to both output increases as well as benefiting the local economies. With manufacturing in upstream goods (like OCTG) also increasing, the entire region will continue to benefit long into the future.
For manufacturers and producers that will continue to invest in the growth of Texas Oilfields, MSI Pipe Protection Technologies provides unparalleled quality protectors for pipes, perforating gun tubing, sucker rods, and other OCTG equipment. For more information on how to protect your Texas oilfield investments, give us a call at 1-877-276-9208.