The United States, Energy Information Administration (EIA), reported that for the second year, most of the crude oil produced in the lower forty-eight states in the previous years was light oil with 40.1 or higher API gravity. The EIA also added that the trend of rising production of domestic crude derives from the E&Ps extracting oil from tight formations. In North Dakota, a major oil producer produced less light oil in the previous year. California, on the other hand, produced no light oil at all in the previous year. In Texas, things were a bit different. It actually produced lighter oil in the past year (2016) as compared to those other years before 2016. Besides, in 2016, it produced less oil with an API grade higher than 50. This was also higher basing on the previous statistics.
Performance of Texas oil production in relation to other oil drilling states
The Energy Information Administration reported, basing on the API gravity of crude, that Texas’ oil production was robust. It pointed out that Texas produces more oil in all categories of API grade as compared to both North Dakota and California. Those results or rather reports brought great future expectations to the economy of the United States as far as gas and oil investment is concerned. It was, however, until January 2017 that the expectation became a reality.
According to the reports made on 31 March, it was deduced that Texas outranked two federal and thirty states offshore areas in production inJanuary, 2017. However, despite the fact that it was the leading oil producer, it actually produced less as compared to the previous year (2016) production. To be precise, it actually produced 4.9% less in Jan 2017 as compared to its production in Jan 2016. Karr Ingham, an economist, reported that 2017 was going to be a year of both recovery and expansion in the Texas statewide oil and gas investment companies. He also added that there is still a long way to go.
Good news in the first quarter of 2017
Fortunately, to his words, on April 19 the alliance reported that in the first quarter of 2017, Texas oil producers recovered about 291.4 MMbbl of crude. Besides, it added that precisely in the Permian basin in the west Texas, production in May could rise to a satisfactory figure which could report a good progress in the industry. There are therefore several factors that had to be put in place for the recovery of Texas’ oil and gas firms. The rise in the Texas Petro Index (TPI) was brought about by factors such as increased drilling activities, a rise in the number of drilling permits issued, higher gas and oil prices and much more. The index (TPI) is basically very far from what it recorded in 2016. And therefore the above factors need to be considered to achieve a different and a better result in the coming months and years.
Karr Ingham reported that the activity levels will continue to flourish, that will result to increase in job opportunities and the industry will support the broader state economy again. There is, therefore, good expectation in the future of the Texas’ investment in oil and gas industry should the above-mentioned factors be put into consideration.