By Bethany Blankley | The Center Square contributor – October 17, 2023
Production of oil, natural gas, and natural gas liquids (NGLs) reached new record highs again after surpassing 30- to 40-year record highs it broke this summer, according to a new analysis published by the Texas Oil & Gas Association.
The Texas oil and natural gas industry, which leads the U.S. in production, reached new record production highs in June and July, surpassing all-time highs set 30 and 40 years ago, in an analysis published in August.
Year-to-date through July 2023, Texas production accounted for 43.3% of all oil production and 27.4% of all natural gas marketed production in the U.S. By September, these numbers increased, accounting for 43.4% of all oil produced in the U.S. Texas’ natural gas production accounts for 27.5% of overall U.S. production.
Oil production reached a record high 5.5 million barrels per day (mb/d) in June and July. Natural gas marketed production reached 31.4 billion cubic feet per day (bcf/d) in June before decreasing to 31.2 bcf/d in July.
Texas refineries in July processed a record 5.6 mb/d of crude oil and a record 3.1 mb/d of NGLs.
But according to a new economic analysis prepared by TXOGA’s Chief Economist Dean Foreman, these records were broken again last month.
According to Foreman’s estimates, Texas’ oil production last month was a record-high 5.9 million barrels per day (mb/d), surpassing the previous month’s record.
Texas’ natural gas marketed production last month also reached a new record high, with 34.6 billion cubic feet per day (bcf/d) of natural gas gross withdrawals, surpassing the record previously set in August.
And as crude and NGL production climbed, Texas-based refiners also processed record amounts.
“This data confirms the Texas oil and natural gas industry is a powerhouse of production, pipelines, processing and ports, all while continuing to make solid gains in environmental progress,” TXOGA president Todd Staples said. “Investment in infrastructure by our industry is what enables this high level of performance, which further solidifies the Lone Star State’s position as the world’s energy leader. At a time of global unrest, all Texans and Americans should take comfort in knowing the men and women in the oil and natural gas industry are working every day to achieve a new level of energy security.”
In light of the current geopolitical environment and with domestic crude oil reserves at near 40-year lows, Foreman said, “it’s imperative that the U.S. have smart energy policies to develop essential U.S. oil and natural gas resources. As the U.S. has reached a new crude oil production record (13.2 mb/d), it’s clear that Texas’ record high production has remained the primary driver of U.S. and increasingly global energy security.”
Additionally, Texas is meeting the energy needs of other states and countries, the data shows. Texas exported nearly $125 billion worth of energy products in the first seven months of 2023, the analysis found.
Before again breaking its own production records, if Texas were its own country, it would already be the world’s third-largest producer of natural gas and the fourth-largest producer of oil. In the first half of 2022, the U.S. became the world’s largest liquid natural gas exporter, led by Texas, according to EIA data.
With increased production and the report’s forecast, Texas is on track to break previous records it broke in 2022. Last year, the Texas oil and natural gas industry broke records in every category, leading the U.S. in oil and natural gas production and lowering emissions, ranking first in industry job growth, wages, payroll and Gross Regional Product nationwide.