Permian Break-Even:
As Low as $22 a Barrel
During the last three years, companies operating in the Permian Basin have drilled much longer laterals and used substantially more complex well completion design in their newer wells with the aim of reaching higher initial production (IP) rates. Well lateral lengths in the Permian have increased in average by more than 1,500 feet since 2016 to approximately 7,500 feet by the end of 2017, says GlobalData, a leading data and analytics company.
An analysis of recent wells for 26 operators in the Permian Basin indicates a break-even oil price range from U.S. $21 to U.S. $48 per barrel with lateral lengths ranging from 4,500 feet to 10,500 feet, GlobalData asserts.
Currently, five Permian operators, EOG Resources, XTO Energy, Pioneer Natural Resources, Concho Resources, and Chevron are the companies with the lowest oil break-even price. For these operators, well lateral lengths vary from 7,560 feet to 10,500 feet and an oil break-even price for their most representative type well is less than U.S. $26 per barrel. The estimated ultimate recovery (EUR) for such wells exceed 1,000 million barrels of oil equivalent (mmboe) and their IP rate is in the range of 1,260 barrels of oil equivalent per day (boed) and 1,917 boed.
Svetlana Doh, Oil & Gas Analyst at GlobalData, says: “Longer laterals do not necessarily translate into high productivity. For instance, QEP Resources has an average lateral length of around 7,200 feet, but an IP rate of around 730 boed. By contrast, the wells drilled by EOG have approximately the same length, 7,560 feet, but yield twice higher initial rates.
“The reason for such a difference is generally related to a completion design incorporating more fracturing stages and the amount of proppant injected. Recent wells drilled by EOG have approximately 2,400 pounds of proppant injected per lateral foot, while QEP used 1,300 pounds of various type proppant per lateral foot.
“All 26 operators included in this analysis have new wells that break-even below a price of U.S. $50 per barrel. Nonetheless, some operators evidence the possibility of reaching even higher well returns with break-even values below U.S. $25 per barrel.”
USFWS to Review Listing Of Yellow-Billed Cuckoo
The U.S. Fish and Wildlife Service (USFWS) has announced a positive 90-day finding on a petition to remove the western distinct population segment (DPS) of the yellow-billed cuckoo (YBCU; Coccyzus americanus), from the federal list of threatened species under the Endangered Species Act (ESA). The listing of the western DPS of the YBCU impacts 13 states.
While the action doesn’t impact the Permian Basin Petroleum Association, nor its initiatives, directly, the news was welcomed by PBPA leadership. Ben Shepperd, President of the PBPA, said that several of the PBPA’s allies were involved in this effort (to remove the cuckoo from its listing as threatened), and that the USFWS’s step is one that PBPA deems as a positive development.
Meanwhile, American Stewards of Liberty (ASL) Executive Director Margaret Byfield indicated that her organization feels likewise. “While it took some time for the Service to make this finding, we are certainly pleased with the result,” Byfield said. “We work tirelessly to ensure species that should not be considered endangered or threatened do not prevent landowners in this country from having full access to their land, and we hope these positive efforts continue to be effective.”
Because erroneous listings of species under the ESA can deprive landowners of the full use of their land and cause significant economic harm, Texas-based ASL—a 501(c)(3) non-profit organization—previously launched a broad effort to delist the numerous species that were either listed in error or have recovered in their natural habitat since listing. These species take up scarce economic resources and impose unnecessary burdens on private landowners and local governments.
On May 4, 2017, the Service received a petition from a diverse group of industry associations, private landowners, and local conservation districts requesting the delisting of the western DPS of the YBCU, which included ASL, Arizona Cattlemen’s Association (ACA), Arizona Mining Association (AMA), National Cattleman’s Beef Association (NCBA), and Public Lands Council (PLC). Additionally, these organizations were joined by both the Winkelman and Hereford Natural Resource Conservation Districts in Arizona and Arizona rancher, Mr. Jim Chilton.
The petitioners requested the species’ removal from the ESA’s list of endangered and threatened species based on two rationales: (1) error in the Service’s consideration of the YBCU’s eastern and western populations as distinct and (2) new information indicating the YBCU’s use of additional habitat not previously thought suitable for the species.
The Service has now concluded that the delisting petition presented substantial scientific and commercial information that the YBCU uses additional habitats, which indicates that the species’ delisting may be warranted. Following this preliminary positive finding, the Service will now conduct a species status review to thoroughly analyze the status of the species and seek additional information from the public, which Petitioners believe will lead the Service recognize the error in the species’ current status as a listed species.
Of the 90-day finding, AMA stated, “The Arizona mining community places a top priority on the preservation of indigenous wildlife inhabiting the lands on which we operate. The sustainability of these species is paramount to companies mining in Arizona. We commend the USFWS for objectively and substantively evaluating this petition on the western distinct population segment of yellow-billed cuckoo and look forward to the issuance of the 12-month finding.”
Ethan L. Lane, Executive Director for the Public Lands Council, continued, “A functioning Endangered Species Act must include delisting when a species no longer warrants protection. We are pleased to see USFWS recognize this fact by their finding and hope it’s a harbinger of more timely science-based decisions in the future.”
Arizona rancher Bill Dunn added, “This finding for the yellow-billed cuckoo is great news. The erroneous listing negatively impacts property owners across the country and needs to be dealt with as soon as possible. Hopefully the Service will conduct an honest assessment of the science and realize they were in error in their original listing decision.”
Jim Chilton concluded, “My biologist said the Yellow-billed Cuckoo listing was a scientific blunder while my lawyer said it was simply political science.”
Through current data and robust science, ASL will continue to actively make the case to delist wildlife and plant species that do not qualify for ESA protection. ASL’s efforts apply to delisting flora and fauna anywhere in the United States where a species was listed in error or where there is no longer a reasonable justification for a species to be listed as endangered or threatened.
About the Endangered Species Act (and information on Delisting)
Delisting a species under the ESA may occur as a result of the species’ recovery, the species’ extinction, or a condition wherein the original data underlying the listing was in error. Since 1973, when the ESA became law, more than 1,500 domestic species have been listed, but only 85 species have been delisted (74 domestic and 13 foreign species). Of these, 20 were delisted because the original data was found to be in error.
About American Stewards of Liberty
ASL is a 501(c)(3) non-profit organization dedicated to protecting private property that works closely with local governments and landowners across America, including: County Commissions, Conservation Districts, business owners, family farmers, ranchers, and homeowners who simply want to exercise the right to productively use their land. For more information, visit: www.americanstewards.us.
Company Becomes Biggest Landfill Business in Basin
San Antonio-based Petro Waste Environmental LP (PWE) announced June 26 the opening of its Deep Six and Big Lake landfills in the Permian Basin.
“With the opening of the Deep Six and Big Lake, Petro Waste is now strategically positioned to cover all four quadrants of the most active play in the United States,” said Petro Waste Founder and Chief Executive Officer George Wommack. “We now have more landfills in operation in the Permian Basin than any other oil and gas waste disposal company.”
The Deep Six Landfill is located on a 212-acre tract in Reeves County, Texas, 10 miles south of the city of Pecos. The facility accepts oil-based mud, water-based mud, oil-based drill cuttings, water-based drill cuttings, contaminated soil, and RCRA-exempt non-hazardous exploration and production (E&P) waste, and provides washouts and other ancillary services. The Big Lake Landfill is located on a 245-acre tract on Highway 137 in Reagan County at the Stiles turnoff, approximately 12 miles north of Big Lake.
This facility is wholly owned and operated by Petro Waste. Funding for the Big Lake Landfill and Petro Waste’s share of the Deep Six Landfill is being provided by Petro Waste’s equity sponsor, Tailwater Capital. Petro Waste’s other two Permian Basin facilities are the Orla Landfill, which opened in April and is also now part of the joint venture with Trinity, and a Howard County facility located between Stanton and Big Spring, which opened in September 2017. Both facilities offer the same services as the Deep Six and Reagan Landfills. Petro Waste also holds a permit in Pecos County to service development around the Permian Basin’s Alpine High play, as well as permits in DeWitt County and McMullen County to service anticipated future activity in the Eagle Ford Shale.
Wommack added, “Our team at Petro Waste is extremely proud that our conviction in the long-term fundamentals of the Texas Oil and Gas industry over the past five years and our commitment through the downturn has put PWE in a position to build out the largest E&P waste landfills platform in the Permian Basin at the time our customers needed us most.”
The exploration and production of oil and gas creates various forms of waste that must be processed and disposed of according to strict regulations set by the Railroad Commission of Texas (RRC) and the U.S. Environmental Protection Agency (EPA). In recent years, technological advancements have helped E&P companies extract hydrocarbons from the earth more efficiently, but these new techniques have increased the volume of non-hazardous solid wastes and high-solids-content waste fluids. These wastes consist primarily of oil-based drilling muds and cuttings and high-solids-content frac flow-back water. The historical lack of infrastructure capable of efficiently processing and disposing of these waste streams near drilling sites previously made it necessary to truck large quantities of the wastes over long distances to the few existing facilities capable of accepting the materials.
Petro Waste Environmental has addressed this infrastructure shortage. The company hasconstructed highly advanced, RRC-permitted waste-processing and disposal facilities throughout the Permian Basin and has plans to do the same in the near future across the Eagle Ford Shale.
The increasing public interest in the use and disposal of E&P waste will likely lead to more stringent regulation, an even higher level of engineering standards in facility design and the construction of more institutional-quality facilities. Petro Waste is building its facilities and training its personnel with that future in mind. Through its innovative, forward-thinking operations, Petro Waste is reducing environmental impacts of the oil and gas industry today, and those benefits will only multiply as the company expands operations to other plays throughout the United States.
ABOUT PETRO WASTE ENVIRONMENTAL LP
Petro Waste Environmental LP is building one of the largest networks of oilfield solid waste-processing and disposal facilities in the United States, strategically located throughout the Permian Basin, Eagle Ford Shale and other active plays across the country. The company provides all forms of non-hazardous E&P waste-processing and disposal. Petro Waste is continually adding new facilities to ensure its customers have access to waste disposal facilities that meet federal and state guidelines as close as possible to their drilling sites. For more information, visit http://www.petrowastelp.com.
ABOUT TAILWATER CAPITAL LLC
Dallas‐based Tailwater Capital is a sophisticated, growth‐oriented energy private equity firm with a well-established track record, having executed more than 100 energy transactions in the upstream and midstream sectors representing over $18.6 billion in transaction value. Tailwater currently manages over $2.5 billion in committed capital and is actively pursuing midstream and upstream investment opportunities. Tailwater is focused on acquiring and growing midstream assets as well as participating in non‐operated upstream opportunities in select basins. For more information, please visit www.tailwatercapital.com.
Midland Native Serves Aboard U.S.S. Constitution
A Midland, Texas, native celebrated America’s 242nd year of independence as part of a hand-picked Navy crew serving on the world’s oldest commissioned warship afloat, the U.S.S. Constitution.
Airman Francisco Miranda serves aboard the 220-year-old Boston-based ship named by President George Washington to honor the Constitution of the United States of America. Famously known as “Old Ironsides,” the Constitution is a wooden-hulled three-masted heavy frigate that originally launched in 1797.
Although Miranda graduated from Olympic Heights High School in Boca Raton, Florida, in 2008, he now considers Midland home, where his parents, Javier and Minerva Miranda, currently live.
“Spending time in Texas, I learned about the importance of meeting new people and working with others from different backgrounds,” said Miranda. “Using people skills to meet others, like I did after moving to Midland, helped me in the Navy.”
Miranda is honored to have been selected to serve on the ship that is rich in history and successfully held off the British Navy in the War of 1812.
“I enjoy learing about our Navy heritage, which is really important here aboard U.S.S. Constitution,” said Miranda. “As a member of the honor guard, handing a folded flag to a grieving widow, or other family member, is something that reinstalls the patriotism I have and appreciation for veterans’ service. It’s a humbling experience.”
A key element of the Navy’s mission is tied to the fact that America is a maritime nation, according to Navy officials, and that the nation’s prosperity is tied to the ability to operate freely on the world’s oceans. More than 70 percent of the Earth’s surface is covered by water; 80 percent of the world’s population lives close to a coast; and 90 percent of all global trade by volume travels by sea. Just as U.S. Navy ships and submarines do today, Constitution actively defended sea lanes against global threats from 1797 to 1855. Constitution’s victories at sea during the War of 1812 inspired a nation and helped mark the emergence of the United States as a world-class maritime power.
Now a featured destination on Boston’s Freedom Trail, Constitution and crew offer community outreach and education about the ship’s history and the importance of maintaining a strong Navy to hundreds of thousands of visitors each year.
Seventy-seven sailors make up the crew aboard Constitution. These sailors routinely interact with the public talking about their jobs, their previous duty stations, Navy rules and regulations, and life aboard a Navy vessel.
“I’m extremely proud of my sailors stationed onboard U.S.S. Constitution,” said Nathaniel R. Shick, 75th Commanding Officer of U.S.S. Constitution. “We have the opportunity to engage with over half a million people each year here at the Charlestown Navy Yard. Each sailor is hand selected for this command, undergoing a rigorous college level curriculum studying American Naval History in the Age of Sail, and building confidence through daily public communication. I could never praise these men and women enough for volunteering their services and pledging their support to our nation.”
U.S.S. Constitution, America’s Ship of State, actively defended sea lanes against global threats from 1797-1855. The World’s Oldest Commissioned Warship Afloat, Constitution embodies 220 years of maritime heritage and unwavering service to her country. Now a featured destination on Boston’s Freedom Trail, Constitution and her crew of active duty U.S. Navy sailors offer community outreach and education about the ship’s history and the importance of naval sea power to more than 500,000 visitors each year.
“Serving in the Navy allows me to continue the heritage we have,” added Miranda. “I look forward to joining the fleet after this tour to share that Navy heritage with people around the world.”
Eight Common “Flow Breakers”
And How to Defuse Them
Sometimes it seems like the workplace is designed to keep you doing anything besides, well… working. If you’re a manager, this is a serious problem because everything at work hinges on your ability to effectively lead your team. Still, distractions abound in most offices, from buzzing phones to watercooler chit-chat to the endless lure of surfing the web. With all this chaos, it’s difficult to achieve the intense state of concentration known as flow, where employees of all levels do their best work.
“Flow is a state of mind that occurs when all your conscious thought is focused on what you are doing,” says Julian Birkinshaw, coauthor along with James Manktelow of Mind Tools for Managers: 100 Ways to Be a Better Boss. “Unfortunately, in the modern workplace, flow can be difficult to achieve and maintain. As a result, you are a less productive manager and stay stressed out at work. But by weeding out typical office distractions and interruptions, you can improve your focus, get more done, and become a more effective manager.”
Mind Tools for Managers identifies the 100 skills that a manager can master to become a better leader. They were identified in a survey of 15,242 managers and professionals worldwide. This research was conducted by James Manktelow, founder and CEO of MindTools.com, and Professor Julian Birkinshaw, deputy dean for programs at London Business School. The authors provide practical advice for each of these skills—one of which is the ability to stay focused—and direct the reader to the MindTools website for a deeper dive into specific skill-building articles, worksheets, videos, and more.
Even if you’re one of the many managers struggling to maintain focus at work, you can achieve a state of flow—which was first described in detail by psychologist Mihaly Csikszentmihalyi—by managing or eliminating the distractions that pull you out of concentration. Keep reading to learn about some of the most common distractions managers and employees typically face at work (and how to deal with them), excerpted from the article “Minimizing Distractions: 10 Ways to Take Control of Your Day.” For more information, please refer to Mind Tool 12-1: http://mnd.tools/12-1.
FLOW BREAKER 1: The relentless presence of personal technology. Smartphones and now smartwatches have blurred the line between personal and professional communication. Now you can receive work emails and calls on the same device as private Facebook comments, Instagram photos, and an array of other personal information. The good news is, this is a challenge that you and your colleagues can effectively manage yourselves. When focusing on a particular piece of work, choose to put away your phones for a certain amount of time. That way you can devote your attention entirely to the project at hand.
FLOW BREAKER 2: Email, email, and more email. Many emails in your inbox are probably not particularly important, and yet you may feel you must look at them when they arrive. Instead, try these tactics:
- Schedule checking time. Turn off the alert that appears on your computer screen when you receive an email, and check and respond to messages at set times instead. This helps you manage your coworkers’, managers’, and customers’ expectations about how and when you will reply to them.
- Choose “low-productivity” times. There are likely certain times of the day when you do your best work, like first thing in the morning or maybe late at night. Schedule email check-ins for your less-productive times and save your peak hours for high-value work.
- Turn emails into actions. If you need more than a few minutes to read an email, add it to your to-do list.
FLOW BREAKER 3: Social media and web browsing. Both are major productivity killers. Trouble is, organizations can no longer block people’s access to websites that aren’t work-related—smartphones can easily get around this. So it’s up to you to use social media and the rest of the web responsibly. If it is acceptable within your organization, use a brief personal browsing session as a reward for an hour or two of high-quality, focused work.
FLOW BREAKER 4: Nerve-jangling phone calls. The ring of a phone often prompts an intense need to answer, even when you’re in deep concentration. To minimize this source of distraction for you and your team, consider arranging a rotation so that team members can take calls for one another. Also be sure to let friends and family know that you will be available for calls only at lunchtime or in the evening.
FLOW BREAKER 5: Distractions in your work environment. Rather than trying to ignore such distractions as strong cooking smells or loud colleagues, get away from the problem. Set yourself up in an empty meeting room to regain your focus. Or wear noise-canceling headphones or play “white noise” to blank out anything that would otherwise grab your attention.
FLOW BREAKER 6: Confusion due to overwhelming workload. Always try to have a manageable to-do list, because having one that’s too long can lead to procrastination, as you wonder which task to tackle next. Each day, commit to accomplishing the two most important tasks on your list, and put the rest on hold until tomorrow.
“In our study we found that 79.5 percent of managers view prioritizing tasks effectively as one of the most important planning and time management skills,” says Manktelow. “It is so important!”
FLOW BREAKER 7: Other people. Colleagues visiting your desk can be a big source of distraction, but you’re also a manager who wants to be available for your team members. So, if you don’t want to be disturbed at times when you need to focus on a task, consider either working at home or in a conference room. If you have your own office, close the door and tell your team that you need to be left alone to concentrate for a while.
FLOW BREAKER 8: Shortfalls in your own well-being. It takes a lot of mental and physical energy to juggle your priorities, manage visitors, and have the discipline to control your use of technology. So, it’s vital that you take care of yourself. Get plenty of sleep and make sure you drink enough water, as dehydration can make you feel tired and impact your thinking. It’s also important to get some fresh air and take a brisk walk during the day—this will energize you. And try to avoid heavy lunches and sugar-laden snacks, as they can lead to a slump in concentration later in the day.
“It’s easier than ever to lose track of what you should be doing at work, but you can still take steps to avoid distractions and improve flow,” concludes Birkinshaw. “Learning to better manage these ‘flow breakers’ is a valuable skill that can be practiced and sharpened over time. And when you can achieve flow more easily, you will not only become a better manager, but you’ll set a great example for your team as well.”
About the Authors:
James Manktelow and Julian Birkinshaw are coauthors of Mind Tools for Managers: 100 Ways to Be a Better Boss (Wiley, April 2018, ISBN: 978-1-119-37447-3, $28.00).
James Manktelow is founder and CEO of MindTools.com. He has written, edited, and contributed to more than 1,000 articles, more than 60 workbooks, and seven books and e-books on management and leadership, including Manage Your Time and Manage Stress.
Julian Birkinshaw is professor of strategy and entrepreneurship, deputy dean for programs, and academic director of the Institute of Innovation and Entrepreneurship at the London Business School. He is the author of fourteen books, including Fast/Forward, Becoming a Better Boss, and Reinventing Management.
About the Book:
Mind Tools for Managers: 100 Ways to Be a Better Boss (Wiley, April 2018, ISBN: 978-1-119-37447-3, $28.00) is available at bookstores nationwide, from major online booksellers, and direct from the publisher by calling 800-225-5945. In Canada, call 800-567-4797. For more information, please visit the book’s page on www.wiley.com.
TIPRO’s “State of Energy Report”
The Texas Independent Producers and Royalty Owners Association (TIPRO) recently released the third edition of their “State of Energy Report,” offering a detailed analysis of national and state trends in oil and natural gas employment, wages and other key economic factors for 2017. TIPRO’s “State of Energy Report” series was developed to further quantify and track the economic impact of domestic oil and natural gas production at the state and national level.
According to the association’s new report, the U.S. oil and gas industry employed 832,777 professionals in 2017, an increase of 3,060 jobs compared to 2016. This represents the first year showing employment growth in the sector since 2014. The industry paid a national annual wage averaging $109,498 in 2017, 103 percent more than the average private sector wage and higher than average wages for construction, manufacturing, wholesale trade, information, professional services, health care, financial services and education services. Payroll in the U.S. oil and gas industry totaled $91 billion in 2017, down by 3 percent compared to 2016.
In 2017, Texas led the country in oil and gas industry employment with a total of 325,439 jobs, a slight increase from 2016 numbers and the first year showing employment growth in the state since 2014. Texas oil and gas employment also represented 39 percent of all oil and gas jobs nationwide last year.
Texas Governor Greg Abbott said, “Texas is blessed with an abundance of resources, but it is because of the determination and innovation of the men and women in the industry that the Lone Star State leads the nation in oil and gas production—and may soon lead all nations in the world in oil production. Despite the volatility in pricing and markets just a few years back, the industry responded with true Texas grit, unleashing technology to improve efficiency and production. I look forward to continuing to work together to ensure that Texas remains the jobs, energy and economic engine of America.”
Texas was followed by the other oil and gas producing states in terms of industry employment, including: Oklahoma (61,562 jobs), Louisiana (51,507 jobs), California (35,956 jobs), and Pennsylvania (27,943 jobs), rounding out the top five states by oil and gas employment.
Continuing improvements and efficiencies gained in exploration and production methods during the industry downturn helped to increase the production of crude oil to historic levels, officially reaching 10.066 million barrels of oil per day in 2017, exceeding a previous record set in the 1970s. Independent oil and gas producers, who collectively drill up to 95 percent of the oil and natural gas wells in America, continue to lead the industry in this growth.
“Our state’s independent oil and gas producers have proven they are some of the most resilient in the world, driving Texas energy production to all-time highs and launching the United States to the forefront of global oil production,” Railroad Commission Chairman Christi Craddick said. “From a regulatory standpoint, I’m proud to say that we’ve developed an environment that allows our state’s energy industry to thrive, which translates to significant revenue for state coffers and high-quality jobs for Texans.”
Total production figures for Texas included 1.27 billion barrels of oil in 2017, an increase of 105 million barrels compared to 2016, and total natural gas production of 8 trillion cubic feet in 2017 for the state, compared to 8.2 trillion cubic feet in the previous year. The second largest producer of oil in 2017 was North Dakota with 384 million barrels, followed by Alaska with 180 million barrels of oil. The second largest producer of natural gas in the nation in 2017 was Pennsylvania with 5.5 trillion cubic feet, followed by Alaska with 3.3 trillion cubic feet of natural gas produced last year.
TIPRO Chairman Allen Gilmer commented, “In Texas, the Permian Basin alone holds between 70 to 700 billion barrels of oil equivalent (BOE), followed by the Eagle Ford Shale in South Texas with 15 to 25 billion BOE. At $50 oil, the value of these vast reserves ranges between $3.85 trillion to $36 trillion. This equates to approximately $400 billion in severance and ad valorum taxes alone that would be paid to the state of Texas using conservative estimates, bestowing wealth greater than any political entity on the planet.”
Despite challenging market conditions over the past several years, the Texas oil and gas industry has remained a cornerstone of the economy providing exceptional career opportunities, as well as significant taxes and royalty payments made to state, local, and federal government entities.
Collectively, Texas oil and gas companies paid $11 billion in state and local taxes and royalty payments in fiscal year 2017, an increase of $1.6 billion compared to 2016. These funds have continued to support all aspects of the state economy, including infrastructure investment, water conservation programs, schools and education, and first responders. Additionally, Texas is home to approximately 2.5 million mineral owners of the 12.5 million mineral owners in the U.S., with oil and gas royalties generating income for nearly 600,000 families in the state.
As market conditions improved in 2017, the U.S. oil and natural gas industry also welcomed a reprieve from overbearing policy measures targeting domestic producers advanced under the previous administration. The rollback of onerous or unnecessary government policies, a return to utilizing sound science at the Environmental Protection Agency (EPA) for developing regulations, meaningful federal tax reform and a renewed commitment by elected officials to achieving U.S. energy dominance together resulted in further investment, job growth and growing optimism from energy producers. Nonetheless, several challenges remain, including uncertainty surrounding tariffs on imported steel and aluminum, current negotiations on the North American Trade Agreement (NAFTA), overbearing federal methane regulations, and environmental activist groups that oppose reliable energy.
“As the leading state advocacy organization representing independent oil and gas producers and royalty owners in Texas, TIPRO remains focused on advancing a targeted federal policy agenda, while protecting and strengthening an already strong regulatory and business environment in Texas,” said Ed Longanecker, president of TIPRO. “With the anticipated growth in production and jobs in the coming months, key priorities for TIPRO for the interim and next legislative session include identifying programs to better allocate oil and gas tax revenue for county road repair and maintenance in energy producing areas, industry workforce development, water use, educating policymakers on the benefits of oil and gas development, and maintaining a balanced, science-based approach to developing regulations at the state level,” said Longanecker.
What does oil and gas mean for Texas?
* Texas led the nation in oil and gas jobs with 325,439 people employed in this industry in 2017, showing the first year of net positive job growth since 2014 and representing 39 percent of all oil and gas jobs nationwide in 2017. This also represented 3 percent of total private sector employment in the state of Texas itself. The positive employment trend in 2017 also continued in the first quarter of 2018 for Texas.
* Texas also led the nation last year in the number of related businesses (11,681), accounting for 29 percent of all oil and gas businesses nationwide.
* Oil and gas jobs in Texas paid on average 132 percent more than the average private sector job in Texas, $128,635 compared to $55,380 in 2017, followed by Alaska with industry wages at $127,827, then California at $121,253.
* Texas led the nation in oil and gas payroll at $41.9 billion in 2017, representing 46 percent of total oil and gas payroll nationwide.
* Texas was the top producing state in the nation with 1.27 billion barrels of oil produced by the Lone Star State in 2017, an increase of 105 million barrels compared to 2016, and total Texas natural gas production of 8 trillion cubic feet in 2017, a slight decrease compared to 2016.
The “State of Energy Report” series is published exclusively by the Texas Independent Producers & Royalty Owners Association. Data was collected from the U.S. Bureau of Labor Statistics (BLS), the U.S. Energy Information Administration (EIA), the Texas Railroad Commission (RRC), Texas Workforce Commission, and DrillingInfo Inc.
Visit http://bit.ly/TIPRO2018EnergyReport to download a copy of TIPRO’s 2018 “State of Energy” report. # # #
About TIPRO
The Texas Independent Producers & Royalty Owners Association (TIPRO) is a trade association representing the interests of nearly 3,000 independent oil and natural gas producers and royalty owners throughout Texas. As one of the nation’s largest statewide associations representing both independent producers and royalty owners, members include small businesses, the largest, publicly-traded independent producers, and mineral owners, estates, and trusts. Members of TIPRO are responsible for producing more than 85 percent of the natural gas and 70 percent of the oil within Texas, and own mineral interests in millions of acres across the state.