AUSTIN – Texas’ production of oil, natural gas, and natural gas liquids achieved new record highs, and resource reserves should support decades of prospective production, according to a new monthly energy economics analysis prepared by Texas Oil & Gas Association (TXOGA) Chief Economist Dean Foreman, Ph.D.
TXOGA estimates that Texas set new production records in June, exceeding previous all-time highs. Year-to-date through July 2023, Texas’ shares rose to 43.3% of oil production in the U.S. and 27.4% of natural gas marketed production. These numbers also represent Texas’ highest level of oil production for any month on record since 1981, and its highest level of natural gas liquids on record for any month since 1993.
Specifically, TXOGA estimates that:
• Texas’ oil production reached a record high 5.5 million barrels per day (mb/d) in June and July; and
• Texas’ 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 shouldered three quarters of U.S. oil production growth year-to-date through July, re-setting its production records in the process,” said Foreman. “TXOGA’s new analyses offer insight into the value chain and operational flows, showing Texas is the key enabler of regional U.S. production, transportation, refining and exports–and a source of dynamism amid global markets that have been searching for clarity this year.”
In addition, the analysis found that Texas and U.S. proved reserves of oil and natural gas remain abundant and continue to grow. Since 2016, Texas has accounted for over 40% of the nation’s oil reserves and nearly one quarter of natural gas proved reserves per the Energy Information Administration (EIA).
The U.S. Geological Survey’s broader resource assessments show decades of potential growth to these proved reserves, led by the Permian Basin and Gulf Coast.
“Although the pathway from exploration through development and production inherently depends on economic considerations, it is clear that U.S. oil and natural gas have remained abundant, and with Texas’ leadership, these resources could remain the bedrock of American energy security for decades to come,” said Foreman.
“The EIA projects that by 2050, the world’s energy needs will nearly double,” said TXOGA President Todd Staples. “Clearly, Texas has the natural resources, manpower and infrastructure to meet not just our energy needs, but the energy needs of our nation and that of a growing world. Policies and politics in Texas and across our nation will determine if we can be the trusted ally the world turns to, or if nations will have to look elsewhere for leadership on energy security. To that end, we need bold policy at the state and federal levels to keep Texas the global energy leader.”
Founded in 1919, TXOGA is the oldest and largest oil and gas trade association in Texas representing every facet of the industry.