Texas broke monthly natural gas, oil production records as jobs, permitting tick up

Texas natural gas and oil production hit all-time highs for the second month in a row in September, according to the latest monthly analysis from the Texas Oil & Gas Association (TXOGA).

According to the report, prepared by TXOGA Chief Economist Dean Foreman, market natural gas production for the month reached 34.6 Bcf, while oil production was 5.9 million barrels.

“These data confirm that the Texas oil and gas industry is a powerhouse of production, pipelines, processing and ports, all while continuing to achieve solid environmental gains,” said TXOGA President Todd Staples. “Our industry’s investment in infrastructure enables this high level of performance, which further cements the Lone Star State’s position as a global energy leader.”

Texas accounted for 43.4% of US oil production and 27.5% of natural gas production during the first seven months of 2023, TXOGA researchers pointed out. The state also exported nearly $125 billion worth of energy products during the same period.

“With the current geopolitical environment and domestic oil inventories near 40-year lows, it is imperative that the U.S. has a smart energy policy to develop America’s essential oil and natural gas resources,” Foreman said. “As the United States hit a new record for oil production (13.2 million b/d), it is clear that record high Texas production has remained a major driver of U.S. and increasingly global energy security.”

Meanwhile, employment in Texas’ oil and gas sector rose by 1,700 jobs in September to a total of 210,700 jobs, the Texas Independent Producers and Royal Owners (TIPRO) said Friday, citing data from the U.S. Bureau of Labor Statistics.

That number is up 18,700 jobs from September 2022, “including an increase of 2,600 jobs in oil and gas production and 16,100 jobs in the services sector,” the researchers said.

Convenience store gas stations saw the most unique job openings in September with 2,898 listings, followed by oil and gas operations support (2,343) and oil extraction (1,365), the TIRPO team added. Houston had the most unique oil and gas job listings at 3,555, followed by Midland (950) and Odessa (501).

Staples also touted job growth.

“Three years ago in September 2020, oil and gas employment hit rock bottom due to Covid, but now through ingenuity, innovation and commitment to energy security, the industry has created nearly 54,000 oil and gas jobs in Texas,” he said. TXOG head. “These high-paying jobs have not only supported Texas families and communities, but have made Texas the undisputed energy leader and launched an energy renaissance that is securing our allies abroad, driving economic growth at home and making Texas cleaner, stronger and better. .”

TIPRO researchers also highlighted data from the state comptroller’s office showing that Texas energy producers paid $544 million in oil production taxes and $208 million in natural gas production taxes in September, both of which were higher than in August.

“Texas and the Permian continue to break production records while meeting the growing energy demand for Americans and our allies abroad,” said TIPRO President Ed Longanecker. “With escalating geopolitical conflicts overseas and associated market volatility, our industry continues to play a significant role in supplying energy amid rising demand, underscoring the critical importance of U.S. oil and gas production at home and abroad.”

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Longanecker noted that U.S. natural gas production rose 5% year over year through July, with “most of the growth coming from the Permian Basin, where natural gas production is forecast to rise 11% (2.2 Bcf/d). by the end of 2023, with further growth expected in 2024. export of liquefied natural gas from Texas and Louisiana to our allies abroad increased by 116%.

Onshore drilling permits in the Lone Star State also posted strong sequential growth in September after a decline in August, according to Evercore ISI research.

Permits filed in Texas rose 212, or 31% month over month, to 899 in September, the Evercore team led by James West said.

In the Permian Basin of West Texas and Southeast New Mexico, 955 permits were issued in September, up 263 or 38% from August.

The top five operators by permit in the Permian were Pioneer Natural Resources Co. with 691 permits, Diamondback Energy Inc. (453), ExxonMobil (300), Chevron Corp. (294) and Coterra Energy Inc. (182). ExxonMobil and Pioneer are trying to merge proposed a $59.5 billion mega-deal this would give ExxonMobil a dominant position in the basin.

In South Texas’ Eagle Ford Shale, permits increased to 191 from 151. The Haynesville Shale in East Texas and Northwest Louisiana posted a September permit count of 128, up from 76 in August.

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