Texas Oil Being Relied on More Since Russian Sanctions Have Been Applied
Texas is doing its part to take the place of Russian oil since sanctions from the U.S. and the rest of the world have been put in place.
According to NewsWest 9, Texas produces the most oil of anyplace else in the U.S.
"Texas is the energy capital of the world, our state alone is responsible for 43% of the oil production in America, 26% of natural gas, if Texas were its own country we'd be the third-largest natural gas producing country in the world," said Todd Staples, President of The of Texas Oil and Gas Association.
That works great since other countries on Earth are looking for oil to replace what they were getting from Russia.
"Russia was providing about 7% of the world's oil and natural gas and with the European Union continuing to ween themselves off of that because of the actions that they've taken against Ukraine, that production has to come from somewhere," Staples said.
That is where Permian Basin oil comes in.
"The Permian Basin is really being looked at as where we're going to meet not only domestic needs but the world's energy supply, play a big big role," Staples said.
With Russian sanctions in place, the Biden administration has called on oil from the U.S. which means a lot of it is coming from Texas and a lot of Texas oil from the Permian Basin.
"We've certainly had good signs lately, record-high number of permits in the Permian basin has been encouraging, in the last few weeks we've had about 30 rigs nationally over two-thirds of those have been in the Lone Star State so that's a big plus factor in going the way we need to go," Staples said.
That increase in oil production means more jobs are available in the oil industry.
"The good news for Texans is that we've had positive job growth," Staples said. "16 out of the last 18 months we've seen positive job growth in the upstream sector, which was hit pretty hard in the pandemic."
So it is a win-win situation for the Permian Basin.