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Texas oil and natural gas industry continues to break records

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Texas’ oil and natural gas industry broke new production records in May, continuing a trend in recent months and years.

Texas’ production of oil, natural gas, and natural gas liquids (NGLs), refinery activity and exports reached new record highs last month, according to a new analysis published by the Texas Oil & Gas Association (TXOGA).

The industry produced a record-high 5.7 million barrels per day (mb/d) of crude oil in Texas, a record 32.5 billion cubic feet per day (bcf/d) of natural gas marketed production and 3.5 mb/d of NGLs, according to estimates made by TXOGA’s Chief Economist Dean Foreman, Ph.D.

This is after the Texas oil and natural gas industry established new monthly records in March, according to U.S. Energy Information Administration (EIA) and U.S. International Trade Commission data. In March, Texas reported a record-high NGL field production of 3.7 million mb/d – the highest on record in history – more than doubling in-state consumption, according to the data.

Crude oil production topped 5.6 mb/d; natural gas marketed production topped 32.3 bcf/d. Texas refinery activities also reach a record-high net production of 5.5 mb/d.

Texas’ production of oil and natural gas is unparalleled. No other state is producing the volume that Texas is.

This is after Texas’ petroleum products exports exceeded 4 million barrels per day for the first time in history last December.

Since then, the Texas oil and natural gas industry has sustained five consecutive months of exporting petroleum products of more than 4 million barrels per day. In the first quarter of 2024, Texas exported nearly $57 billion worth of petroleum products.

The majority of LNG exports went to European and Asia Pacific countries; the majority of crude oil and hydrocarbon gas liquids were exported to Asia Pacific countries, according to the data.

Foreman said that Texas’ record-setting performance has continued “on the heels of remarkable productivity gains,” with rig productivity in May increasing by more than 20% year-over-year, according to EIA estimates. “As a result, Texas has continued to gain market share amid U.S. oil and natural gas production through the first half of 2024. U.S. energy security increasingly depends on Texas, and Texas has stepped up like none other.”

Projections for June show Texas’ production remains historically strong, holding at 5.7 mb/d of crude oil, 3.6 mb/d of NGLs, and 32.4 bcf/d of natural gas marketed production, according to Foreman’s estimates.

In the first half of 2024, Texas produced an estimated nearly 43% of all domestically produced crude oil and more than 28% of all domestic natural gas marketed production, according to TXOGA estimates.

Thermal and dispatchable sources of energy, primarily natural gas, are generating the majority of electricity Texans use through Texas’ grid managed by the Electric Reliability Council of Texas (ERCOT). During Winter Storm Heather, from Jan. 13-16, thermal and dispatchable sources generated as much as 95% of ERCOT’s electricity.

During another high demand period, from March 21-22, thermal and dispatchable sources, primarily natural gas, generated over 90% of ERCOT’s electricity for nine consecutive hours, averaging 91.8% of the region’s power, according to ERCOT and EIA data.

“These new records are a testament to Texas’ role as a national and global energy leader,” TXOGA President Todd Staples said. “Amidst growing global instability and energy demand that is expected to nearly double by 2050, oil and natural gas continue to serve as the bedrock of our energy mix, providing affordable reliable energy to meet our state, nation, and the world’s needs.”

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Biden Admin Energy Policies Putting Americans Further At Risk In Potential War With China, Analysis Finds

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From the Daily Caller News Foundation

By NICK POPE

 

The environmental, social and corporate governance (ESG) movement is undermining U.S. energy security by artificially sapping demand for new refining projects, even though demand for fossil fuels and petrochemicals remains strong and could grow stronger in the event of a prolonged military conflict.

America’s energy systems and infrastructure may be currently unprepared to sustain a wartime economy in the event of a hot war with China, thanks in part to the Biden administration’s green policies, according to a new report published by the Heritage Foundation.

The report, published Thursday and titled “Chinese Handcuffs: Don’t Allow the U.S. Military to Be Hooked on Green Energy from China,” examines the state of American energy security and resilience in a potential war with China, taking stock of markets at home and overseas. The paper emphasizes the need for American policymakers to get ahead of any possible conflict with China by ensuring that the U.S. military has a robust and secure supply of traditional energy available, rolling back certain environmental regulations and targets pushed by the Biden administration, building more strategic energy infrastructure and bolstering existing commercial relationships with friendly countries, all of which may heighten deterrence with an adversarial country considering escalation with the U.S.

“Due to a heavy reliance on foreign sources, poor policy choices, and constraints on the transport of fuels, the U.S. military could be vulnerable,” the report states. “The risk is for localized fuel shortages, global supply disruptions, and Chinese economic coercion during a conflict driving significantly increased energy demands.”

Brent Sadler, the report’s author and a 26-year U.S. Navy veteran who now works as a senior research fellow for naval warfare and advanced technology at the Heritage Foundation, further emphasized that while steps to heighten America’s energy security will be expensive and require political will, they are necessary measures to ensure that the U.S. can transition to and sustain a wartime footing against near-peer competitors like China. Numerous pundits and ex-military personnel have suggested that China is getting ready for a war to start in the coming years, whether in Taiwan or in the South China Sea.

“America’s energy network is brittle in some regions and unable to adjust easily to surges in demand,” the report states. “In wartime, the consequences of such weaknesses could be an inability to sustain military combat operations and the inability of wartime industry to keep America safe. On the other hand, readiness for this possibility could be a significant advantage, enabling the United States to deter China by confronting it with a foe that is able to wage a prolonged war backed by a resilient wartime economy.”

The insistence of some federal and state officials — particularly Democrats — on transitioning the American economy to reliance on green energy poses a major problem for American security, the report asserts. Additionally, the environmental, social and corporate governance (ESG) movement is undermining U.S. energy security by artificially sapping demand for new refining projects, even though demand for fossil fuels and petrochemicals remains strong and could grow stronger in the event of a prolonged military conflict.

The Biden administration has pledged to invest at least $1 trillion over the next decade to advance its massive climate agenda, and federal agencies have pushed stringent regulations and taken other bureaucratic actions targeting the broader American energy sector. The administration is also looking to make the military a more climate-friendly organization, including by seeking to have the Department of Defense (DOD) transition its non-tactical vehicle fleet to electric models by 2030.

Additionally, the supply chains for many of the green energy technologies favored by the Biden administration are dominated by China, the report points out. Numerous energy and national security experts have highlighted that retiring existing energy infrastructure in favor of products reliant on China-dominated supply chains is likely to make America more vulnerable, particularly in the event of an acute geopolitical crisis.

One specific element of the American energy system in need of change is the Strategic Petroleum Reserve (SPR), a de facto emergency supply of oil stored in underground caverns along the Gulf Coast established in the 1970s amid an energy crisis, according to the report. Sadler recommends that policymakers begin to treat the SPR as a key tool for the military to use in the event of war, given China’s rise, as well as improving energy transportation infrastructure to more easily get SPR supply to coastal regions where the military can use it expediently.

The Biden administration has used the SPR as a tool for manipulating markets, as officials decided to release approximately 180 million barrels from the stockpile to bring down spiking energy costs ahead of the 2022 midterm elections. Several million of those barrels were sold to Chinese entities, and the administration has subsequently floated the possibility of again tapping into the SPR ahead of the pivotal 2024 elections while the reserve remains at its lowest levels in about 40 years, according to the U.S. Energy Information Administration.

Stadler calculated that the SPR’s current inventory would need a boost of about 55 million more barrels in order to single-handedly supply the amount of oil that U.S. forces used in Operation Desert Storm in 1990.

Deliberate policy choices and infrastructure upgrades are needed to make sure that the U.S. is able to effectively fight China in a prolonged conflict, Stadler contends in the report. Making these adjustments would help to provide an advantage over potential adversaries like China that rely on energy imports, according to Stadler.

Beyond SPR-related adjustments, the report also identifies an urgent need to unleash refiners and build out more pipeline capacity in light of China’s possible ability to launch highly disruptive cyber attacks against key pipeline and shipping infrastructure.

Additionally, Stadler emphasizes the importance of strengthening relationships with energy-rich countries that could be key sources of energy for American forces around the world in the event of a hot war with China. While several memoranda of understanding are in place with such countries, Stadler suggests that U.S. officials should move to elevate these agreements to treaty status to enhance America’s standing with those countries and decrease China’s ability to pressure third-party countries against assisting American forces.

“This is especially true for scenarios in which a major war disrupts overseas energy markets and normal shipping methods. Under such conditions, the U.S. will need more diverse and reliable overseas suppliers for military operations,” the report states. “Given the global impact that a war with China would have, the U.S. urgently needs to ensure that it has enough fuel stocks and crude oil to allow it time to adjust to a wartime footing.”

Neither the White House nor DOD responded immediately to requests for comment.

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How climate activists harm Canadian energy security

Published on

From the Daily Caller News Foundation

By NICK POPE

 

Canadian Official Reveals Damage Eco-Activists Have Wreaked On Great White North’s Energy Security

Rebecca Schulz — the minister of environment and protected areas of Alberta, Canada — sat down with the Daily Caller News Foundation at the Canadian embassy in Washington, D.C. to discuss how climate activists, along with the country’s left-wing government, have hampered Canada’s energy security.

Alberta is a province in Western Canada that is known for its abundant natural resources, especially oil and natural gas. However, the federal government in Ottawa — led by liberal Prime Minister Justin Trudeau — has moved to restrict development in the province, harming the many blue-collar Canadians who rely on affected industries to make a living, Schulz explained to the DCNF.

“We have seen, over the last number of years, the activist, radical left starting to shape policy in a way that is, I think, very concerning, not only for just the basic needs of everyday people when it comes to safe, affordable, reliable energy, but I think, when it comes to to energy security,” Schulz told the DCNF.

“Certainly, we have a prime minister that is completely just bending to the activist base and ignoring, I think, the very real concerns of everyday commonsense as Canadians, and that’s a problem,” Schulz told the DCNF, referencing Trudeau. Later in the interview, Schulz predicted that Canadian voters will “vastly reject” Trudeau when they next head to the polls, in large part due to “the woke, ideological policies” that his government has pursued.

In Canada, one such official with deep ties to the climate activist movement shaping policy is Minister of Environment and Climate Change Steven Guilbeault. A former Greenpeace activist who once scaled Toronto’s iconic CN Tower and climbed on the roof of a government official’s private residence to install solar panels in acts of protest, Guilbeault has stated that he does not seek to implement a “secret agenda” of policies aligned with his activist past while in office, according to CBC, a Canadian news outlet.

Notably, the Biden administration counts numerous former activists among its ranks, including Bureau of Land Management (BLM) Director Tracey Stone-Manning, who was connected to radical eco-activists concocting a tree spiking plot in Idaho in the late 1980s. BLM manages federally-controlled lands for uses like energy production and livestock grazing.

“It’s really problematic because it is completely ideologically driven and devoid of common sense and the realities that people are facing every single day. And I think, you know, of course, people do care about the environment. I, of course, as minister of the environment, I care that we’re doing the right thing for the environment that we’re leaving,” Schulz continued. “You know, the places that we live, and where we develop our resources from, we’re maintaining that for future generations. But I also know that we could not survive a day without oil and gas, or products made from oil and gas and petrochemicals. And that fact isn’t changing. That, in fact, is growing so, I think it’s pretty concerning that they are also then trying to essentially stifle any opinions or statistics or facts that don’t support their narrative.”

Canada is one of America’s biggest energy suppliers, providing about 52% of all gross oil imports in 2023 and exporting nearly three trillion cubic feet of natural gas to the U.S. in 2022, according to the Canadian Energy Centre. Most of the fuel comes to America via cross-border pipelines, though some is also delivered by rail or by sea, according to a 2021 report commissioned by the American Petroleum Institute.

The Keystone XL pipeline, a major project that would have helped bring oil from Alberta to refineries along the coast of the Gulf of Mexico in the U.S., was set to be a new expansion to the systems that bring Canadian energy to America.

However, activists waged a major pressure campaign against the project, and its developers ultimately scuttled it in June 2021 after the Biden administration nixed a crucial permit and generally showed minimal enthusiasm for the project upon entering office, according to The Associated Press.

“Projects like that, of that size and scope, obviously take a significant amount of political will,” Schulz said of Keystone XL. “And I think that was a hugely disappointing decision, because we know that market access matters for energy security and meeting the needs of, I would say, Canadians and Americans, and people around the world.”

Notably, Brent Sadler — a 26-year veteran of the U.S. Navy who now works as a senior research fellow for naval warfare and advanced technology at the Heritage Foundation — agrees with Schulz’s assessment that Keystone XL would have been a positive development for North American energy security.

In a recently-published report assessing American energy security in light of the Chinese Communist Party’s (CCP) geopolitical ambitions, Sadler argued that policymakers impose “unnecessary restraints” on cross-border energy interconnection, and that security interests would be better served if they instead “get out of the way” and “permit cross-border energy infrastructure projects such as the Keystone XL pipeline.”

For now, Schulz will turn much of her focus to the Trudeau government’s proposed emissions cap for the oil and gas industry, which could see the government require energy producers to slash their emissions by about 37% relative to 2022 levels by 2030, according to Reuters. Its opponents — many of whom are located in Alberta — are characterizing the policy as a thinly-veiled production cap that will severely hurt the province’s workers and regional economy.

If finalized, the policy “would kill thousands of jobs, I would say tens of thousands of jobs, just directly in conventional oil and gas, not to mention what we’re seeing in oil sands and, of course, other related industries,” Schulz told the DCNF. “We just have a federal government that doesn’t look at any socioeconomic data on the impacts that their policy would have … No competent, responsible government would see those numbers and move ahead with that cap, but that is, in fact, what our federal Liberal government is doing in Canada.”

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