Report: Texas Oil Output Grew by More Than All Other States, Gulf of Mexico Combined

Wednesday, April 11, 2018

Texans for Natural Gas | April 11, 2018

Texas’ average annual oil production increased by more than all other states and the Gulf of Mexico combined in 2017, a new report from the U.S. Energy Information Administration (EIA) finds.

Growing by an average of 300,000 barrels per day (b/d), Texas production averaged 3.5 million b/d last year. This increase was nearly four times greater than the next highest state, New Mexico. According to EIA:

“Texas crude oil production averaged 3.5 million b/d in 2017 and reached a record high monthly level of 3.95 million b/d in December 2017. Texas’s 2017 annual production increase of nearly 300,000 b/d—driven by significant growth within the Permian region—was more than all other states and the Federal Gulf of Mexico combined.” (emphasis added)

While Texas has long been known for oil production, technological advances in development, such as hydraulic fracturing and horizontal drilling, coupled with vast shale resources in the Permian Basin and Eagle Ford, have allowed state output to flourish over the past decade (as shown by the graph below).

Such incredible production growth is expected to continue, as EIA estimates U.S. crude output to average a record 10.7 million b/d this year and 11.3 million b/d in 2019, aided by soaring production in Texas. In fact, the agency’s latest drilling productivity report estimates crude oil production from the Permian alone will increase by 80,000 b/d in April to 3.156 million b/d, up 362,000 b/d from January of this year.

But it’s not just oil production where Texas continues to shine. Recent EIA data shows Texas maintained its position as the top producing natural gas state in 2017.  State gross natural gas withdrawals topped 21.7 billion cubic feet per day (Bcf/d), nearly 7 Bcf/d higher than the next largest state, Pennsylvania, last year.

Such a feat is especially impressive considering the United States saw record natural gas production last year. According to EIA, the United States set records in 2017 for gross withdrawals and marketed natural gas volumes, which hit 90.9 Bcf/d and 78.9 Bcf/d, respectively. While Texas saw a slight decline in natural gas production year over year, and the Appalachian region – made up of Ohio, West Virginia, and Pennsylvania – accounted for the largest total volume of gas produced, the Lone Star State still accounted for 21.7 Bcf/d in gross withdrawals. To put that in perspective, Pennsylvania, the second highest natural gas producing state, accounted for less than 15 Bcf/d.  

With the country awash with natural gas, exports of the fuel have also increased through both pipeline and liquefied natural gas (LNG) exports. According to EIA, total natural gas exports increased 36 percent, while LNG exports increased 288 percent in 2017, allowing the United States to become a net natural gas exporter for the first time since 1958. Natural gas exports, especially LNG, are expected to rise, as new LNG export terminals are planned to come online along the Texas Gulf Coast and across the country.