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
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, firstname.lastname@example.org
--Edited by Katharine Fraser, email@example.com