• 6 minutes U.S. Shale Oil Debt: Deep the Denial
  • 12 minutes Knoema: Crude Oil Price Forecast: 2018, 2019 and Long Term to 2030
  • 17 minutes WTI @ $75.75, headed for $64 - 67
  • 2 hours Trump vs. MbS
  • 41 mins Nuclear Pact/Cold War: Moscow Wants U.S. To Explain Planned Exit From Arms Treaty
  • 3 hours Why I Think Natural Gas is the Logical Future of Energy
  • 3 hours Merkel Aims To Ward Off Diesel Car Ban In Germany
  • 30 mins A $2 Trillion Saudi Aramco IPO Keeps Getting Less Realistic
  • 8 hours Get on Those Bicycles to Save the World
  • 14 hours Can “Renewables” Dent the World’s need for Electricity?
  • 1 day The Dirt on Clean Electric Cars
  • 14 hours Satellite Moons to Replace Streetlamps?!
  • 1 day Owning stocks long-term low risk?
  • 5 hours Long-Awaited Slowdown in China Exports Still Isn’t Happening
  • 17 hours Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 8 hours Can the World Survive without Saudi Oil?
UAE Boosts Production, Introduces New Crude Blend

UAE Boosts Production, Introduces New Crude Blend

UAE’s ADNOC is boosting production…

Economist Warns that Texas Oil Boom will Begin to Slow this Year

Karr Ingham, an economist and owner of Ingham Economic Reporting, recently spoke at the Houston Petroleum Club about the Texas Petroleum Index and to warn them that despite booming production that turned 2013 into a record year for the Texas oil and gas sector, growth is likely to slow down soon.

Oil production in the lone star state grew more than 20% in 2013 as output reached more than 850 million barrels for the year, but for the last three months rig count fell, along with the number of people employed by the industry, and even the number of drilling permits owned. Ingham suggests that this could be a sign that the industry is bracing itself slightly for the lower oil prices expected later in 2014.

“I think we will see a solid year for exploration and production activity, and that the oil and gas economy will continue to be a great benefit to the state as a whole, but I don’t think we are going to see rates of growth like this.”

Related article: Why Following EIA Forecasts is Dangerous for the US

Texas’s oil and gas sector benefitted from massive increases in production from wells operating in the Eagle Ford Shale and Permian Basin, and combined with the high oil price, which rose from $94 in 2012 to $98 in 2013, the Texas Petro Index reached its highest level ever.

In 2013 the index hit 295, up from 277 in 2012, and surpassing the record of 287.6 from 2008, the year before the financial crisis after which the index fell to just 189.

Ingham explained that “it is the story of the old and the new. The old being the Permian Basin, which has turned around production in a behemoth of a region, and the new being the Eagle Ford.”

In 2013 production from the Eagle Ford Shale formation contributed more than 25% of Texas’ total oil output, and the Permian Basin experienced a revival in production levels, accounting for nearly 45%, compared to 32% in 2011. This helped oil and gas production in Texas to reach almost $110 billion for the year.

By. James Burgess of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News