By Ryan Sitton
President Donald Trump has dubbed this week Energy Week.
The President and his Cabinet participated in a number of energy-related events all centered on his vision of producing more energy than anyone else and using that energy to enhance our economic and national security. The idea of energy dominance is exactly what President Trump meant when he promised to Make America Great Again.
As the world’s largest producer of oil and gas, the U.S. is already uniquely poised to enhance its global energy leadership. America’s energy exports increased 334 percent in just the last 10 years, and our energy is being used to lessen the influence of Russia in Europe and provide cleaner burning energy for countries like China, South Korea, Mexico, Jordan, Pakistan, Turkey, Dominican Republic, Thailand, Kuwait and Chile.
Domestic oil production is now pushing 9.5 million barrels per day and increasing at a rate faster than it did during the oil boom from 2011-2014. But what’s behind this surge in production and exports, and America’s elevation in the global energy sphere?
The shale revolution was born in Texas. The wildly prolific Permian Basin, which is home to 40 percent of all U.S. drilling rigs, has attracted capital investment from around the globe. If you look at the shift in the global landscape of where people are investing their dollars, they’re looking more at Texas today than they have in 50 years. For example, the Permian Basin has experienced multi-billion dollar acquisitions with some acreage prices eclipsing $60,000/acre.
Because of our world-class shale plays and sensible regulatory environment, our state now accounts for more than one-third of the nation’s oil production and is home to more than half of all U.S. oil and gas jobs. If Texas were a country, it would rival the production of many OPEC nations.
Below are just a few examples of how Texas is excelling in different sectors of the energy industry:
Liquefied Natural Gas (LNG) and Natural Gas
Currently, seven LNG projects are in the planning stages or under construction ,which could have an economic impact of more than $145 billion and support more than 70,000 jobs in Texas
Pipelines are carrying record amounts of natural gas to Mexico, and most of it is coming from Texas. With only 23 rigs of their own, U.S. natural gas exports to Mexico have quadrupled and will continue to grow as the developing country strives to hit emissions targets.
Multiple pipelines are planned to transport hydrocarbons from West Texas to Corpus Christi and Mont Belvieu. These pipelines will have the ability to move upwards of 600,000 barrels per day.
- Enterprise Products Partners to build 571-mile NGL pipeline
- 730-mile Epic Permian-to-Corpus pipeline in the works
- Kinder Morgan announces 430-mile, Permian gas pipeline
Petrochemical Facility and Refining Investments
Petrochemical facilities are being expanded all along the Gulf Coast, with Exxon planning the world’s largest ethylene cracker in Corpus Christi.
- World’s largest ethylene cracker plant will be in South Texas
- Exxon Mobil completes massive plastics expansion near Houston
- French company invests $1.7 billion in Texas petrochemical plants
- Brazil petrochem co. to build $675M project in Houston area
Petrochemical facilities make domestic manufacturing a reality, and investments will add $294 billion to U.S. economic output and 462,000 jobs by 2025.
Texas currently accounts for 30 percent of the nation’s refining capacity and ranks third in the world, but that amount will soon increase with new refineries coming online.
These refineries will enhance our domestic refining options for producers while stimulating our Texas economy.
For all of the political posturing around energy, the market forces in the United States are competing head to head with the conglomerate forces in the rest of the world. As America emerges as THE global energy powerhouse, Texas will continue to fuel the U.S. oil and gas industry and be the driving force behind American energy dominance. And that’s good for every single Texan.