Texas’ oil and natural gas production reached new record highs in July, after breaking records in May.
Texas’ energy exports and production of natural gas liquids (NGLs) also broke records, according to new monthly energy economic analysis by Texas Oil & Gas Association.
TXOGA’s projections show that Texas set new records for crude oil production of 5.76 million barrels per day (mb/d); natural gas marketed production of 32.8 billion cubic feet per day (bcf/d); and natural gas liquids (NGLs) production of 3.85 mb/d – each setting record highs.
Texas’ petroleum value chain highlights for May 2024 also achieved records. Refiner and blender crude oil net inputs (5.69 mb/d) were the highest on record when evaluating EIA data that goes back to 1981.
Texas now accounts for 42.8% of all U.S. crude oil production and 28.3% of all U.S. natural gas marketed production year-to-date through July 2024, according to TXOGA estimates.
“The Lone Star State’s oil and natural gas industry is not only producing more, but doing so with unmatched efficiency,” TXOGA President Todd Staples said. “These latest numbers further reinforce the industry’s ongoing commitment to utilizing the latest technologies and innovations to produce abundant, affordable, and reliable energy.”
Texas exported $95.7 billion worth of energy products in the first five months of 2024, according to U.S. International Trade Commission data.
Texas exported $10 billion of crude oil primarily to Asia and Europe. Texas also exported nearly $6 billion worth of refined petroleum products, primarily to North America, Latin America and the Caribbean.
Natural gas exports accounted for $1.6 billion and hydrocarbon gas liquids, $2.2 billion.
Texas production records “underscore Texas’ dominant position in the U.S. energy market and ongoing contributions to national energy security,” TXOGA says.
While several news outlets have claimed oil and natural gas production records are a credit to Biden-Harris administration policies, those in the Texas industry point out that production records wouldn’t exist without Texas setting them.
Texas is leading in production because of a supportive state government and regulatory environment and facilities that primarily operate on private land, Texas industry experts have told The Center Square.
The Institute for Energy Research has identified over 200 actions the Biden-Harris administration has taken against the U.S. oil and natural gas industry, including halting federal onshore and offshore permits and leases, hamstringing production in other states.
As the Biden-Harris administration has advanced restrictions and threatened to tax and fine the industry, Texas Gov. Greg Abbott, the Texas legislature, state comptroller and the Texas Railroad Commission have implemented measures to facilitate production and safeguard the industry from federal actions.
While permits are held up by federal agencies, the RCC, which regulates the Texas oil and natural gas industry, continues to approve permits and implement conservation efforts, The Center Square has reported.
As the federal government advances investment policies targeting the fossil fuel industry, Texas law prohibits financial companies from implementing them and prohibits state government entities from investing in them.
Texas is also aggressively suing the Biden-Harris administration on several fronts. These include efforts to block EPA methane rules that would hamper the natural gas industry and blocking an attempt to classify lizards as endangered in the Permian Basin, one of the richest oil and natural gas fields in the world, among other policies.
Identifying threats posed by the current administration, those in the Texas industry have called on Congress to pass permitting reform, among other measures, The Center Square reported.
Staples also maintains that Texas’ production records “are not guaranteed. We cannot take for granted that this industry can continue to rewrite its record book in the face of federal policies blatantly designed to undermine progress. Delayed permits, canceled pipeline projects, closed and delayed federal leasing programs and incoherent regulations hurt American consumers and stifle our ability to deliver energy freedom and security around the world.”
