October 6, 2016

PITY THE POOR MALTHUSIANS:

How Texas Ingenuity Turned the Tables on OPEC, Made the U.S. an Energy Powerhouse and Slashed Oil Prices (Robert Bryce, 9/30/16, The Dallas Morning News)

Technological innovation in everything from drill bits and mud pumps to seismic analysis and digitally controlled drilling rigs has unlocked galaxies of energy that have helped transform America into an energy superpower. The U.S. now has an energy-price advantage on commodities like natural gas, propane, ethane and even electricity over nearly every other country. That advantage is a direct result of 
the dynamism of the domestic oil and gas business, the epicenter of which remains in Texas.

Today's oil-price plunge is largely due to the shale revolution, which started in Texas and has made the U.S. the world's biggest oil and natural-gas producer, leading to record levels of oil in storage. Between 2009 and 2015, U.S. oil production grew by about 3.9 million barrels per day. And nearly 60 percent of that increase -- some 2.3 million barrels per day -- came from Texas.

Texas now accounts for about 37 percent of daily U.S. oil production and about 27 percent of all domestic natural gas output.

The Lone Star State is once again exerting outsize influence on global prices, an echo of its storied past. But this time aroundthe pace of development of new technologies suggests that we may be headed into a new era of higher oil production and lower prices, with Texas leading the way.

Posted by at October 6, 2016 8:43 PM

  

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