The amazing increase in Texas oil – output has doubled over the last three years and completely reversed a 22-year decline

[Valin]

AEIdeas:

 

 

Mark J. Perry

February 1, 2013

 

 

 

The Energy Information Administration released new data on Friday for US oil production by state, and reported that “Saudi Texas” produced an average of 2.139 million barrels per day (bpd) in November, the highest monthly output since February 1987, more than 25 years ago (see top chart above). Texas oil production has increased by almost 30% in November from a year earlier, and by 71% over the last two years. Amazingly, oil production in the Lone Star State had doubled in just a little more than three years, from 1.066 million bpd per day in August 2008 to 2.139 bpd in November 2012. In just the last three years, the phenomenal increase in Texas oil output completely reversed the 22-year decline in the state’s oil production from 1987 to 2009.

 

Further, Texas oil output in November at an average of 2.139 million bpd was slightly greater than all of the US oil imports that month from the Persian Gulf countries (Saudi Arabia, Iraq, Kuwait and Qatar) of 2.103 million bpd. The last time Texas oil output matched Persian Gulf oil imports was back in April 1996, more than 16 years ago (see bottom chart).

 

Another way to put the staggering increase in Texas oil output into perspective – the Lone Star State’s output is almost three times the production in America’s No. 2 oil producing state – North Dakota, which produced 733,097 bpd in November (669,000 bpd in the Bakken). And the 654,000 bpd increase in Texas oil output over just the last 15 months, is like adding another Bakken formation to the US oil supply. Amazing. The one million bpd increase in Texas oil output over the last three years has to be one of the most significant increases in oil output ever recorded in the history of the US over that time period.

 

(Snip)