(Photo credit: Sally Beauvais/KRTS)
A new report out from a Texas agency says the country’s energy dominance is rooted in the Lone Star State. That dominance hinges on major investments that have been made in the Permian Basin.
The report from the Texas Oil and Gas Association says Texas is leading the way in energy investment.
“Let’s just say the old adage everything is bigger in Texas definitely rings true when it comes to energy,” said Todd Staples, president of the group.
The Permian Basin, according to the report, is leading the robust growth. In 2016, the area saw deals worth more than $25 billion, spurring major investment in other areas like petrochemical manufacturing and pipeline infrastructure. According to the report, $18 billion of that was placed in the Delaware and roughly $9 billion in the Midland basins. Comparatively, the second-most active market — in Oklahoma — received only $5 billion, says Staples.
Staples says his group predicts total capital expenditures in the Permian Basin will increase to an estimated 400 percent in the next 5 years, jumping from $8 billion in 2016 to $40 billion in 2021. This, Staples says, will lead to major job and economic growth.
“We think there’s going to be about 60,000 jobs created and over $6 billion in investment once complete in the announced pipelines alone if they all come to fruition,” says Staples.
The planned infrastructure from the Permian to the Gulf Coast petrochemical complex is robust. Since this June there have been a reported 134 projects announced that would see new facilities or expanded capacity along the coast set up.
According to the report, the Permian Basin makes up 45 percent of the country’s total onshore oil production in the lower 48 states. That 2016 production of 2.4 million barrels per day, the report says, is greater than the individual average production of nine OPEC countries.
Staples says the investment in Texas’ energy industry and the natural resources in the state will provide for continued activity regardless of what happens across the world.