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The Energy Information Administration (EIA) released new state crude oil production data yesterday for the month of May, and one of the highlights of that monthly report is that oil output in America’s No. 1 oil-producing state – Texas – continues its phenomenal, eye-popping rise. Here are some details of oil output in “Saudi Texas” for the month of May:
1. Oil drillers in Texas reached a new milestone in May, by producing more than 3 million barrels of crude oil every day (bpd) during the month of May, which is the highest daily oil output in the Lone Star State in any single month since at least January 1981, when the EIA started reporting each state’s monthly oil production (see chart above). Texas reached the two million barrel per day oil production milestone in August 2012, and has since added a million more barrels of daily oil production in less than two years to reach the three million barrel milestone in May of this year. Compared to a year ago, oil output in Texas increased by 21.2% in May marking the 37th straight month starting in May 2011 that the state’s oil output has increased by more than 20% on a year-over-year basis.
2. Remarkably, oil production in the Lone Star State has more than doubled in less than three years, from 1.496 million bpd in August 2011 to 3.01 million bpd in May of this year (see chart above), and that production surge has to be one of the most significant increases in oil output ever recorded in the US over such a short period of time. A 1.51 million bpd increase in oil output in only 33 months in one US state is remarkable, and would have never been possible without the revolutionary drilling techniques that just recently started accessing vast oceans of Texas shale oil in the Eagle Ford Shale and Permian Basin oil fields. As I reported recently, both the Eagle Ford and Permian Basin oil fields in Texas are now producing crude oil at a rate of more than 1 million bpd, joining an elite international group of only ten super-giant oil fields that have ever produced that much oil at their peak.
3. The exponential increase in Texas oil output over roughly the last three years has completely reversed the previous, gradual 28-year decline in the state’s conventional oil production that took place from 1981 to 2009 (see arrows in chart) – thanks almost exclusively to the dramatic increases in the state’s output of newly accessible, unconventional shale oil.
4. As recently as mid-2009, Texas was producing less than 20% of America’s domestic crude oil. The recent gusher of unconventional oil being produced in the Eagle Ford Shale and Permian Basin oil fields of Texas, thanks to breakthrough drilling and extraction technologies, has recently pushed the Lone Star State’s share of domestic crude oil above 30% in each of the last 20 months, and all the way up to more than 36% of America’s crude output in May.
5. Oil output has increased so significantly in Texas in recent years that if the state
was were considered as a separate oil-producing country, Texas would have been the 8th largest oil-producing nation in the world for crude oil output in March (most recent month available for international oil production data) at 2.93 million bpd – behind No. 7 Iran at 3.23 million bpd.
6. The dramatic increase in Texas’s oil production is bringing jobs and economic prosperity to the state. For example, over the last 12 months through May, payrolls in the state of Texas increased by 371,000 jobs, which was a 3.3% annual increase in the state’s employment level, almost double the 1.8% increase in total US payrolls over that period. Every business day over the last year, more than 1,400 new jobs were created in the Lone Star State, and many of those jobs were directly or indirectly related to the state’s booming energy sector, which experienced a 8.1% increase in payrolls for oil and gas extraction jobs (8,450 new jobs) over the most recent 12-month period through May. Oil and gas companies in Texas hired more than 32 new employees every business day over the last year just for extraction activities, or more than 4 new hires every hour!
MP: The significant increase in Texas’s oil production over the last several years is nothing short of phenomenal, and is a direct result of America’s “petropreneurs” who developed game-changing drilling technologies that have now revolutionized the nation’s production of shale oil. Thanks to those revolutionary technologies, Texas is now home to two of only ten super-giant oil fields to ever produce more than 1 million barrels of oil per day – the Eagle Ford and Permian Basin.
For oil output in Texas to increase from 2 million to 3 million bpd in less than two years, and increase so dramatically that the state produced more than one-third of all US crude oil in each of the last 15 months (and more than 36% of US oil in May), is undoubtedly one of the most remarkable energy success stories in US history – and it’s just getting started. At the current pace of annual increases of about 25%, Texas oil production will likely surpass 4 million bpd by late summer of next year. With those projected increases in Texas oil output, the state could soon surpass Iraq, Iran and even Canada to move up in the international oil production rankings to become the world’s No. 5 oil producer in 2015.
“Saudi Texas” continues to be the shining star of The Great American Energy Boom.
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