Report: Texas Tops Global Ranking as Most Desirable Area for Oil and Gas Investment
Wednesday, November 29, 2017
Texas is the most attractive area for oil and gas exploration and production investment according to the latest annual Fraser Institute Global Petroleum Survey. Compiling responses from oil and gas executives and managers around the world, Texas received a perfect rating of 100.00, an improvement from previous years and allowing it to dethrone Oklahoma as the most desirable region in the world for oil and gas investment
Rankings in the Fraser Institute’s survey are based on a Policy Perception Index rating, which takes into account a number of factors that could deter a company from investing in a specific jurisdiction. These factors include: high tax rates, costly regulations, uncertainty over environmental regulations, sentiment of the administration and ‘upstream’ development regulations, as well as political stability and safety concerns. Based on these factors, Texas was found to be the ideal place worldwide for oil and gas investment, ranking above other U.S. states such as Oklahoma and North Dakota, as well as entire OPEC nations. As the survey notes:
“Texas is the most attractive jurisdiction in the United States—and the most attractive jurisdiction in the world. Texas displaced Oklahoma from the global top spot this year: Oklahoma is now the second most attractive jurisdiction in the US and the second most attractive in the world.”
This is not the first time Texas has made the list of top jurisdictions for global oil and gas investment. In fact, Texas frequently places among the top ten regions globally in terms of attractiveness, coming in second in 2016 and 2015:
“Four of the jurisdictions—Oklahoma, Texas, Saskatchewan, and North Dakota—consistently rank in the top 10, having been there in the last six iterations of the survey.”
More impressive still, among the regions with the largest reserves, Texas is far and away to most attractive choice for investment. Ranking above countries such as the United Arab Emirates, Alberta, Kuwait, and Egypt; Texas’ Policy Perception Index score is an incredible 20 points ahead of the UAE, which ranks second at 80.91 points.
Texas is blessed with a wealth of natural resources and, thanks to continued support of oil and gas production from the state government, business community and the majority of Texans, the Lone Star State is rightfully being recognized as the world’s best place for oil and natural gas production.