Austin, TX, Aug. 24, 2017 (GLOBE NEWSWIRE) -- According to a just-released report from the Texas Oil & Gas Association (TXOGA), America’s potential to achieve Energy Dominance is concentrated in the Permian Basin, where capital investment and production in West Texas and Southern New Mexico have reached unprecedented levels.
According to the report, “U.S. Energy Dominance Starts in Texas,” fully 41 percent of the total upstream deal value in the nation occurred in the Permian Basin (West Texas and Southern New Mexico) with merger and acquisition investments totaling $25.6 billion in 2016. Total capital expenditures for the Permian are expected to increase by 400 percent over the next five years – from $8 billion in 2016 to over $40 billion in 2021, according to the report.
“Our nation’s ability to achieve and sustain energy dominance rests here in the heart of Texas,” said TXOGA President Todd Staples. “Thanks to rich natural resources, advances in technology, and the know-how to capitalize on tremendous opportunity, Texas is helping to make the United States the global energy leader.”
In detailing the findings of TXOGA’s report, Staples noted that oil and natural gas activity in the Permian has spurred billions of dollars in capital investments in expanded pipeline infrastructure, petrochemical manufacturing facilities, additional refining capacity and LNG terminals. “Capital investment in Texas is changing the global energy landscape, securing America’s economy, our environment and our future,” he said.
See below for highlights of TXOGA’s report, “U.S. Energy Dominance Starts in Texas.”
- In 2016, fully 41 percent of the total upstream deal value in the nation occurred in the Permian Basin (West Texas and Southern New Mexico) with merger and acquisition investments totaling $25.6 billion.
- Total capital expenditures for the Permian are expected to increase by 400 percent over the next five years – from $8 billion in 2016 to over $40 billion in 2021.
- The Permian Basin accounts for 45% of total onshore oil production in the lower 48 states.
- Half of all active onshore oil rigs in the United States are operating in the Permian Basin.
- The Permian’s production of 2.4 million barrels per day in 2016 is greater than the average crude oil production of these nine of the 14 OPEC countries – Algeria, Angola, Ecuador, Equatorial Guinea, Gabon, Libya, Nigeria, Qatar and Venezuela.
- A single day of natural gas production in the Eagle Ford could meet the natural gas needs of over 230,000 U.S. homes for one month.
Capex investments and production in the Permian are driving massive infrastructure, petrochemical and LNG investments in Texas:
- New pipelines planned to connect the Permian Basin with Corpus Christi and the Texas Gulf Coast account for over $6 billion in investment once complete. These projects are expected to support more than 60,000 jobs.
- 134 announced projects will draw $71 billion of potential investment to the Texas Gulf Coast for new chemical manufacturing facilities or expanded capacity.
- Sourcing natural gas from the rich Permian, Eagle Ford, Barnett and Haynesville Shales, Texas currently has seven LNG facilities planned or under construction including: Texas LNG, Rio Grande LNG, Golden Pass LNG, Freeport LNG, Port Arthur LNG, Annova LNG and Corpus Christi LNG.
The full report is available online here.
A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/a6830e88-419e-4b42-830b-e7dbc59ef790
Kate Zaykowski Texas Oil & Gas Association 512-478-6631 email@example.com
Source:Texas Oil & Gas Association