US

Listen: TXOGA reports capital expenditures increase in Permian Basin posits US energy dominance

(Photo by Spencer Platt/Getty Images)

On this episode of “The Jacki Daily Show,” Jacki discussed why we should be supportive of robust U.S. energy production. Many people don’t know that a shale revolution has happened that now rivals Saudi Arabia, Russia, and Venezuela in reserves and in production, debunking the myth that we are beholden to other countries for energy.

A new report from the Texas Oil and Gas Association (TXOGA) debuted in Austin last week which expressed a positive outlook for West Texas and New Mexico’s oil production.

Todd Staples, president of the Texas Oil and Gas Association, joined Jacki to discuss the benefits of capital expenditures in the Permian Basin increasing by 400 percent by 2021, benefiting Texas and the rest of the United States for years to come.

Total capital expenditures for the Permian Basin are expected to increase by 400 percent over the next five years – from $8 billion in 2016 to over $40 billion in 2021, according to the report.

“This means that no matter what happens to the price of oil and gas around the world -- the global product that is, Jacki -- it means the Lone Star State is going to be in play,” said Staples. “It means we are positioned and adding to our nation’s energy dominance. What it really means is Energy Dominance starts in Texas.”

Here are the highlights from TXOGA's report:

  • 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.

Listen to more episodes of “The Jacki Daily Show” on demand on TheBlaze Contributors.

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