The Texas Oil & Gas Association (TXOGA) has released U.S. Energy Dominance Starts in Texas, a report highlighting how America’s potential to achieve energy dominance is concentrated in the Permian Basin, where capital investment and production in West Texas and Southern New Mexico have reached unprecedented levels.
According to the report, oil and natural gas activity in the Permian has spurred billions of dollars in capital investments in expanded pipeline infrastructure, petrochemical manufacturing facilities, additional refining capacity and LNG terminals.
“Our nation’s ability to achieve and sustain energy dominance rests here in the heart of Texas,” said TXOGA President Todd Staples. “Thanks to rich natural resources, advances in technology, and the know-how to capitalize on tremendous opportunity, Texas is helping to make the United States the global energy leader.”
Key findings from the report include:
- In 2016, fully 41 percent of the total upstream deal value in the nation occurred in the Permian Basin (West Texas and Southern New Mexico) with merger and acquisition investments totaling $25.6 billion.
- Total capital expenditures for the Permian are expected to increase by 400 percent over the next five years – from $8 billion in 2016 to over $40 billion in 2021.
- The Permian Basin accounts for 45% of total onshore oil production in the lower 48 states.
- Half of all active onshore oil rigs in the United States are operating in the Permian Basin.
- The Permian’s production of 2.4 million barrels per day in 2016 is greater than the average crude oil production of these nine of the 14 OPEC countries – Algeria, Angola, Ecuador, Equatorial Guinea, Gabon, Libya, Nigeria, Qatar and Venezuela.
- A single day of natural gas production in the Eagle Ford could meet the natural gas needs of over 230,000 U.S. homes for one month.
- Capex investments and production in the Permian are driving massive infrastructure, petrochemical and LNG investments in Texas.
- New pipelines planned to connect the Permian Basin with Corpus Christi and the Texas Gulf Coast account for over $6 billion in investment once complete. These projects are expected to support more than 60,000 jobs.
- 134 announced projects will draw $71 billion of potential investment to the Texas Gulf Coast for new chemical manufacturing facilities or expanded capacity.
- Sourcing natural gas from the rich Permian, Eagle Ford, Barnett and Haynesville Shales, Texas currently has seven LNG facilities planned or under construction including: Texas LNG, Rio Grande LNG, Golden Pass LNG, Freeport LNG, Port Arthur LNG, Annova LNG and Corpus Christi LNG.