Discussion: (5 comments)
Comments are closed.
A public policy blog from AEI
View related content: Carpe Diem
We hear a lot about the well-publicized increases in oil production in America’s top two oil-producing states: Texas (2.874 million barrels per day (bpd) in January, and now as a separate country the state would be the 10th largest oil-producer in the world) and North Dakota (where the Bakken oil fields are on their way to the one million bpd milestone in the next few months). But the recent breakthroughs in advanced drilling technologies have also brought dramatic increases in shale oil output over the last three years (January 2011 to January 2014) to the five oil-producing states of: Oklahoma (61%), Utah (61%), Colorado (103%), Wyoming (22.5%) and New Mexico (55%).
The chart above shows the combined daily oil output in those five states (data here), which has increased by 57% over the last three years, from 698,000 bpd in January 2011 to 1.097 million bpd in January 2014. Recent increases in oil production in those states since 2010, thanks to advanced drilling technologies, have brought the combined oil production to the highest level since July 1986, more than 27 years ago, and has completely reversed a multi-decade decline in oil production that started in those states in the mid-1980s. Combined oil production in those five states topped one million bpd in July 2013 for the first time since early 1989, and combined daily production has been above the one million barrel milestone for those states in every month since then, reaching a 27.5 year high in January of 1.097 million bpd.
Just like in Texas and North Dakota, the increased oil output in those five states is delivering an energy-based economic stimulus with thousands of new shovel-ready, well-paying jobs for the middle class, both directly in oil and gas drilling and indirectly in many support industries, millions of dollars in royalty payments to farmers and landowners, millions of dollars in new investments, increased state tax revenues, housing construction booms, and general economic prosperity.
Welcome to the Great American Energy Boom that is spreading shale-driven wealth, jobs and prosperity across the country, including to the states of Wyoming, Colorado, Oklahoma, Utah and New Mexico.
Comments are closed.
1150 17th Street, N.W. Washington, D.C. 20036
© 2016 American Enterprise Institute for Public Policy Research