By Ryan Sitton
Texas shale producers have been so successful and resilient OPEC took action recently to limit its oil production.
Texas innovation has allowed our producers to develop more energy resources at ever decreasing costs. Unlike Middle Eastern oil producing nations who rely on oil revenues to fund massive social programs, American energy producers are able to flex with the commodity markets and develop new resources when it’s economical. OPEC thought it could break Texas energy, but what they ended up doing was putting their own countries’ financial health in jeopardy.
What I think you’ll see when commodity prices come up is Texas will be the first place where production will increase and we will begin to compete for global market share now that the oil export ban has been lifted. Our ability to quickly bring production online, decreased drilling and development costs, and our regulatory framework have made Texas THE PLACE to explore for oil and natural gas. That’s good for our economic and national security, and bad for OPEC.
Photo from Bloomberg News