Texas leads US in oil, gas production, job growth: TIPRO

Houston (Platts)--2Apr2013/231 pm EDT/1831 GMT


Texas oil production saw a 25% increase last year compared with 2011 production, while gas production rose by just over 1% over the same period, according to a report released by the Texas Independent Producers and Royalty Owners Association.

The 32-page "State of Energy" report, released Monday, tracks trends in the oil and gas industry nationally and in the Lone Star State.

Texas was the top gas producing state in 2012, with an output of more 8 Tcf, up 102 Bcf from the previous year.

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The report also found that Texas led the US in crude oil production 2012 with a total production of 717 million barrels, an increase of 185 million barrels compared with 2011.

In an interview Tuesday, TIPRO President Ed Longanecker attributed the Texas production increases to the development of unconventional gas and oil shale plays such as the Eagle Ford Shale of South Texas, as well as the increased level of activity in more traditional energy-producing regions such as the Permian Basin.

Longanecker said TIPRO timed the released of the report to come out in the middle of the 2013 Texas legislative session, during which lawmakers are debating a number of important issues that could have profound impacts on the oil and gas industry.

"It's an excellent opportunity to enforce some of our policy priorities and to provide further data on the impact of the oil and gas sector for the state of Texas," he said.

"There is a long list of issues related to water use and conservation, and roads and infrastructure due to increased activity in these areas of production. We're working with legislators to ensure that they're considering and advancing sound policies that don't result in unintended consequences for such an important industry," Longanecker said.

The report states that ongoing innovation and advancements in horizontal drilling and hydraulic fracturing have been the drivers for a remarkable increase in the production of oil and gas from unconventional shale plays across the nation.

In 2012, total US crude production reached its highest level in nearly 15 years, with production averaging nearly 6.5 million b/d, according to the Energy Information Administration.

According to the TIPRO report, at the national level, the US oil and gas industry employed 971,200 in the first half of 2012, up 7% from 2011. The industry paid a national annualized wage of $107,200 in 2012, 119% more than the average private sector wage of $48,900. Payroll in the US oil and gas industry was $104 billion in 2012, up by 12%.

In Texas, the oil and gas industry employed almost 380,000. In the first half of 2012, the state led the country in the number of new oil and gas industry jobs added, 34,600, with growth expected to exceed 50,000 net new jobs for the full year of 2012. Texas was followed in growth of industry employment by Oklahoma, with 7,300 new jobs; North Dakota, 6,400 jobs; and Pennsylvania, 4,200 jobs.

Texas was the top energy employment state in every one of 10 sectors that make up the oil and gas industry. The report states that oil and gas employment is so concentrated in Texas that of in six of the 10 sectors, 40% or more of the jobs are located in Texas.

The report finds that last year, 39% of all oil and gas jobs were located in Texas.

--Jim Magill, jim_magill@platts.com
--Edited by Katharine Fraser, katharine_fraser@platts.com





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