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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A majority of Americans say it is more important for the U.S. to establish energy independence than to fight climate change, according to new polling.
The poll from Napolitan News Service of 1,000 registered voters shows that 57% of voters say making America energy independent is more important than fighting climate change, while 39% feel the opposite and 4% are unsure.
Those surveyed also were asked: Which is more important, reducing greenhouse gas emissions to combat climate change, or keeping the price of cars low enough for families to afford them?
Half of voters (50%) said keeping the price of cars low was more important to them than reducing emissions, while 43% said emissions reductions were more important than the price of buying a car.
When asked, “Which is more important, reducing greenhouse gas emissions or reducing the cost and improving the reliability of electricity and gas for American families?”, 59% said reducing the cost and increasing the reliability was more important compared to 35% who said reducing emissions was more important.
The survey was conducted online by pollster Scott Rasmussen on March 18-19. Field work was conducted by RMG Research. The poll has a margin of error of +/- 3.1 percentage points
Dan McCaleb is the executive editor of The Center Square. He welcomes your comments. Contact Dan at [email protected].
Canada has set ambitious climate goals, aiming to cut its greenhouse-gas emissions by 40 to 45 per cent by 2030, and to hit net-zero emissions by 2050.
Now a senior fellow at Resource Works, Jerome Gessaroli, argues that Canada is over-focusing internally on reducing greenhouse-gas emissions, when we should “look at cooperating with developing countries to jointly reduce emissions.”
He continues: “And we do that in a way that helps ourselves. It helps meet our own goals. That’s through Article 6 of the Paris Accord, allowing countries to share emission reduction credits from jointly developed projects.”
Reduction on a global scale
Article 6, says Gessaroli, means this: “We can work towards meeting our own emission goals, and can help developing countries meet theirs. We can do it in a way that’s much more efficient. We get a lot more bang for our buck than if we are trying to just do it domestically on our own.”
The point is that, in the end, emissions are reduced on a global scale — as he stressed in a five-part series that he wrote for Resource Works last November.
And in a study for the Macdonald-Laurier Institute (where he is a senior fellow) he wrote: “The benefits could be large. Canada could reduce emissions by 50 per cent more if it carried out methane reduction projects both internationally and domestically, rather than solely in Canada.”
But is Ottawa interested?
Gessaroli says the federal government expressed interest in Article 6 in 2019 — but has not moved since then.
“They barely looked at it. Since this requires government-to-government coordination, it needs Ottawa’s initiative. But there doesn’t seem to be too much interest, too much appetite in that.”
All Ottawa has said so far is: “Going forward, Canada will explore these and other similar options to strengthen international co-operation and generate incentives for further emission reductions.”
Gessaroli on Resource Works
Gessaroli has been working with Resource Works since he first spoke with our Stewart Muir, following a letter that Muir wrote in The Vancouver Sun in 2022: ‘Gas has key role to play in meeting 1.5C climate targets.’
Gessaroli saw in Resource Works advocacy for responsible resource development “for the people, the citizens of BC, in an environmentally responsible manner and in a manner that’s efficient, driven by the private sector.”
And: “Resource Works supports responsible resource development, not uncritical expansion. We have these resources. We should develop them, but in a way that benefits society, respects nature, respects the local peoples, and so that wide elements of society can benefit from that resource development.”
Gessaroli on electric vehicles
Gessaroli hit a shared interest with Resource Works in a 2024 paper for its Energy Futures Institute, critiquing BC’s plan to require that all new vehicles sold in the province must be electric zero-emission vehicles (ZEVs) by 2035.
For one thing, he wrote, BC would need to spend $1.8 billion to provide electric charging points for the vehicles. And billions more would be required to provide expanded power generation and transmission systems.
“The Government of BC should adjust or rescind its mandated targets for new minimum zero-emission vehicle sales.”
And on ZEV subsidies
Stewart Muir and Barry Penner, chair of the Energy Futures Institute, wrote a guest column last October in Business in Vancouver. They cited Gessaroli’s paper above, and noted: “According to Gessaroli, meeting BC’s ZEV targets will require an additional 2,700 gigawatt hours of electricity by 2030, and 9,700 gigawatt hours by 2040—almost equal to the output of two Site C dams.”
Gessaroli has also looked at the subsidies BC offers (up to $4,000) to people who buy an electric vehicle.
“The subsidies do help. They do incentivize people to buy EVs. But it’s a very costly way to reduce carbon emissions, anywhere upwards of $600, $700, even $800 a tonne to eliminate one tonne of carbon.
“When you look at the social cost of carbon, the government uses a figure around $170 a tonne. That’s the damage done from every tonne of carbon emitted into the atmosphere. So we’re paying $800 to remove one tonne of carbon when that same tonne of carbon does damage of about $170. That doesn’t sound like a very cost-effective way of getting rid of carbon, does it?”
Gessaroli on Donald Trump’s policies
Gessaroli says tariffs on imports are not the only benefit that Donald Trump plans for U.S. industry that will hurt Canada.
“He also wants to reduce tax rates, 15% for US manufacturers, and allow full deductibility for equipment purchases. You reduce regulations and red tape on companies while lowering their tax rates. They’re already competitive to begin with. Well, they’re going to be even more competitive, more innovative.”
For Canada, he says: “Get rid of the government heavy hand of overtaxing and enforcing inefficient and ineffective regulations. Get rid of all of that. Encourage competition in the marketplace. And over time, we’d find Canadians can be quite innovative and quite competitive in our own right. And we can hold our own. We can be better off.
“And there’d be more tax revenues being generated by the government. With the tax revenue, you can build the roads, build the hospitals, improve the healthcare system, things like that.
“But without this type of vibrant economic type activity, you’re going to get the stagnation we’re seeing right now.”
About Jerome Gessaroli
Gessaroli leads the Sound Economic Policy Project at the B.C. Institute of Technology. He is the lead Canadian co-author of Financial Management: Theory and Practice, a widely used textbook. His writing has appeared in many Canadian newspapers.
Stewart Muir, CEO of Resource Works, highlights Gessaroli’s impact: “Jerome brings a level of economic and policy analysis that cuts through the noise. His research doesn’t just challenge assumptions—it provides a roadmap for smarter, more effective climate and energy policies.
“Canada needs more thinkers like him, who focus on pragmatic solutions that benefit both the environment and the economy.”
Gessaroli and Karen, his wife of 34 years, live in Vancouver and enjoy cruising to unwind. In his downtime, Gessaroli reads about market ethics and political economy — which he calls his idea of relaxation.
