Texas Oil Production 2010-2020

Introduction

Fig. 1: Crude Oil Extraction at Formations in and around Texas. [2] (Source: A. Ekpo-Otu.

The state of Texas stands as a colossus in the global industry, whose production rates have not only shaped the local and national economy, but had far-reaching implications on international energy markets. Out of all US states, Texas produces the most oil, at around 40% of total US production. [1] (See Fig. 1.) Influenced by a variety of technological, economic, and regulatory factors, including advances in hydraulic fracking and horizontal drilling, vast reserves in shale formations have been unlocked, most notably in the Permian Basin, which single-handedly accounts for a sizeable portion of US crude output. [1,3]

Analysis

The years of 2010-2012 were marked by significant growth when compared to the years prior. According to sources, The rapid increase in production in the early 2010s was due to significant increases in hydraulic fracking and horizontal drilling in primarily shale formations, in addition to high global oil prices during this period which incentivized oil exploration and production across the state and the country, according to sources. [3] 2013-2015 saw sustained expansion, with a regulatory landscape remaining favorable. In 2015, the U.S. lifted a ban on crude oil export, further boosting incentives to increase oil production. Although there was a significant drop in global oil prices in 2014, Texan oil production continued to grow, with producers adapting by streamlining operations and reducing costs. [3] Production began to stabilize from 2016-2018, with steady increases until a drop in 2020 due to the COVID-19 Pandemic, which led to a plummeting demand for oil due to global lockdowns quickly leading to a decrease in production. [4]

© Alexander Ekpo-Otu. The author warrants that the work is the author's own and that Stanford University provided no input other than typesetting and referencing guidelines. The author grants permission to copy, distribute and display this work in unaltered form, with attribution to the author, for noncommercial purposes only. All other rights, including commercial rights, are reserved to the author.

References

[1] J. J. Tintera, "Oil and Gas Development Impacts of Water Pollution Above and Below Ground," Texas Alliance of Energy Producers, May 2019.

[2] "State Energy Production Estimates 1960 Through 2022," U.S. Energy Information Administration, 2022, Table PT1.

[3] R. Kapoor and J.P. Murmann, "The Organizational and Technological Origins of the U.S. Shale Gas Revolution, 1947 to 2012," Ind. Corp. Change 33, 106 (2024).

[4] E. Bennion and D. Mead, "The Reemergence of the United States as a Global Petroleum Producer," U.S. Bureau of Labor Statistics, August 2013.