Texas Oil Production Sets Record -- February 12, 2019

Link here. Data points:

• production not seen since 1973, the same year of the Arab oil embargo
• 2018: 1.54 billion bbls last year
• 2017: 1.26 billion bbls
• 1973: 1.28 billion bbls
• Ranking:
• Russia
• Saudi Arabia
• Texas
• daily average in 2018: 4,219,178 bopd (4.2 million bopd)

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New Mexico Doing Well Also

From oilprice:

New Mexico received US$2.2 billion in revenues from oil production last year. This was a 26-percent increase on the year, or US$465 million. The total amount represented 32.3 percent of the New Mexico State General Fund recurring revenue.

According to a report of the news in the Albuquerque Journal, a substantial increase in investments and production in the state contributed to the revenue increase, as did higher oil prices, despite the fluctuations throughout the year.

New Mexico, together with Texas, is home to the Permian, the shale oil and gas play that has seen the strongest increase in interest, investment, and production over the last few years thanks to many low-cost production spots. That’s despite warnings from industry experts that the low-cost sweet spots are already taken and production costs will only rise.

Still, oil and gas companies, and private equity firms are flocking to the Permian and drillers are pumping, which most recently caused pipeline bottlenecks that pressured the prices of Permian crude. The bottlenecks are being addressed, however, and soon the play will have more oil-moving capacity.

The Permian is an outperformer: between 2017 and 2018, crude oil production shot up by as much as 860,000 bpd to 2.76 million bpd, energy investment expert Nawar Alsaadi noted in a recent analysis for Oilprice, but this may lead many to assume that this performance is the norm across shale plays.

Nawar Alssadi suggests that the Permian was an outlier, that the Eagle Ford and the Bakken did not contribute to the shale revolution and/or production from the Eagle Ford and the Bakken were inconsequential. Nawar must have missed this graphic:

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Such A Great Story 

Link over at oilprice:

The rise of U.S. tight oil production over the last several years has upended the oil market and challenged OPEC’s hold on oil prices. This seemingly relentless growth in U.S. tight oil production has created the impression that oil prices will remain forever capped as each price spike is met by a massive wave of US tight oil supply.