Energy
Texas oil and natural gas production reached new record highs in July
From The Center Square
By
Texas’ oil and natural gas production reached new record highs in July, after breaking records in May.
Texas’ energy exports and production of natural gas liquids (NGLs) also broke records, according to new monthly energy economic analysis by Texas Oil & Gas Association.
TXOGA’s projections show that Texas set new records for crude oil production of 5.76 million barrels per day (mb/d); natural gas marketed production of 32.8 billion cubic feet per day (bcf/d); and natural gas liquids (NGLs) production of 3.85 mb/d – each setting record highs.
Texas’ petroleum value chain highlights for May 2024 also achieved records. Refiner and blender crude oil net inputs (5.69 mb/d) were the highest on record when evaluating EIA data that goes back to 1981.
Texas now accounts for 42.8% of all U.S. crude oil production and 28.3% of all U.S. natural gas marketed production year-to-date through July 2024, according to TXOGA estimates.
“The Lone Star State’s oil and natural gas industry is not only producing more, but doing so with unmatched efficiency,” TXOGA President Todd Staples said. “These latest numbers further reinforce the industry’s ongoing commitment to utilizing the latest technologies and innovations to produce abundant, affordable, and reliable energy.”
Texas exported $95.7 billion worth of energy products in the first five months of 2024, according to U.S. International Trade Commission data.
Texas exported $10 billion of crude oil primarily to Asia and Europe. Texas also exported nearly $6 billion worth of refined petroleum products, primarily to North America, Latin America and the Caribbean.
Natural gas exports accounted for $1.6 billion and hydrocarbon gas liquids, $2.2 billion.
Texas production records “underscore Texas’ dominant position in the U.S. energy market and ongoing contributions to national energy security,” TXOGA says.
While several news outlets have claimed oil and natural gas production records are a credit to Biden-Harris administration policies, those in the Texas industry point out that production records wouldn’t exist without Texas setting them.
Texas is leading in production because of a supportive state government and regulatory environment and facilities that primarily operate on private land, Texas industry experts have told The Center Square.
The Institute for Energy Research has identified over 200 actions the Biden-Harris administration has taken against the U.S. oil and natural gas industry, including halting federal onshore and offshore permits and leases, hamstringing production in other states.
As the Biden-Harris administration has advanced restrictions and threatened to tax and fine the industry, Texas Gov. Greg Abbott, the Texas legislature, state comptroller and the Texas Railroad Commission have implemented measures to facilitate production and safeguard the industry from federal actions.
While permits are held up by federal agencies, the RCC, which regulates the Texas oil and natural gas industry, continues to approve permits and implement conservation efforts, The Center Square has reported.
As the federal government advances investment policies targeting the fossil fuel industry, Texas law prohibits financial companies from implementing them and prohibits state government entities from investing in them.
Texas is also aggressively suing the Biden-Harris administration on several fronts. These include efforts to block EPA methane rules that would hamper the natural gas industry and blocking an attempt to classify lizards as endangered in the Permian Basin, one of the richest oil and natural gas fields in the world, among other policies.
Identifying threats posed by the current administration, those in the Texas industry have called on Congress to pass permitting reform, among other measures, The Center Square reported.
Staples also maintains that Texas’ production records “are not guaranteed. We cannot take for granted that this industry can continue to rewrite its record book in the face of federal policies blatantly designed to undermine progress. Delayed permits, canceled pipeline projects, closed and delayed federal leasing programs and incoherent regulations hurt American consumers and stifle our ability to deliver energy freedom and security around the world.”
Alberta Premier Danielle Smith issued the following statement, welcoming the U.S. tariff reprieve and calling for strategic action:
“Alberta is pleased to see that today President Donald Trump has decided to refrain from imposing tariffs on Canadian goods at this time as they study the issue further.
“We appreciate the implied acknowledgement that this is a complex and delicate issue with serious implications for American and Canadian workers, businesses and consumers given the integration of our markets, along with our critical energy and security partnership.
“Avoiding tariffs will save hundreds of thousands of Canadian and American jobs across every sector. As an example, declining to impose U.S. tariffs on Canadian energy preserves the viability of dozens of U.S. refineries and facilities that upgrade Alberta crude, and the jobs of tens of thousands of Americans employed at them.
“Despite the promising news today, the threat of U.S. tariffs is still very real. As a country, we need to immediately take the following steps to preserve and strengthen our economic and security partnership with the United States, and to avoid the future imposition of tariffs:
- Focus on diplomacy and refrain from further talk of retaliatory measures, including export tariffs or cutting off energy to the U.S. Having spoken with the President, as well as dozens of governors, senators, members of congress and allies of the incoming administration, I am convinced that the path to a positive resolution with our U.S. allies is strong and consistent diplomacy and working in good faith towards shared priorities. The worst possible response to today’s news would be the federal government or premiers declaring “victory” or escalating tensions with unnecessary threats against the United States.
- Negotiate ways to increase what Canadians and Americans buy from one another. As an example, the United States should look at purchasing more oil, timber and agricultural products from Canada, while Canada should look at purchasing more American gas turbines, military equipment and the computer hardware needed to build our growing AI data centre sector. Finding ways to increase trade in both directions is critical to achieving a win-win for both countries.
- Double down on border security. Within the next month, all border provinces should either by themselves, or in partnership with the federal government, deploy the necessary resources to secure our shared border from illegal drugs and migration.
- Announce a major acceleration of Canada’s 2 per cent of GDP NATO target. This is clearly a shared priority that benefits both of our nations. There is no excuse for further delay.
- Crack down on immigration streams and loopholes that are known to permit individuals hostile to Canada and the United States to enter our country, and restore immigration levels and rules to those under former Prime Minister Stephen Harper.
- Immediately repeal all federal anti-energy policies (production cap, Clean Electricity Regulations, Impact Assessment Act [Bill C-69]) and fast track Northern Gateway and Energy East projects pre-approvals.”
From the Canadian Taxpayers Federation
Carney stumbles out the gate on carbon taxes
Prime minister hopeful Mark Carney is supposed to be the economic messiah sent to save the Liberals from the depths of polling purgatory.
But right out the gate, Carney showed he doesn’t have an answer to the most important question:
Will he keep the carbon tax?
Carney should have seen that question coming. His campaign leaked to the media that he would scrap the carbon tax. But when reporters asked him that question at his campaign kickoff in Edmonton, he went wonky and wobbly.
It should have been a yes or no answer. Instead, Carney served up an unappetizing word salad.
“If you are going to take out the carbon tax, we should replace it with something that is at least, if not more, effective,” Carney said. “Perception may be that it takes out more than the rebate provides, but reality is different, and Canadians will miss that money.”
Carney’s stance on the carbon tax is clear as mud and it’s bad for two key reasons.
First: he’d replace the carbon tax with something more “effective.”
The carbon tax has been very effective at sucking a lot of money out of the wallets of Canadians. And the carbon tax has been ineffective at hitting the government’s own emissions targets.
The carbon tax is an expensive failure.
Second: Carney parrots the insulting Trudeau government narrative that the carbon tax is all a “perception” problem.
The message is Canadians are too stupid to appreciate the genius of the carbon tax, and if the government could change the perception of the masses, the carbon tax would be just fine.
Worse for Carney, his answer was an assault on his own brand.
Carney’s the guy who is supposed to have his homework done. Instead, he shrugged at the obvious question, saying he’d release a “comprehensive” plan later.
In other words: just trust him.
But here’s the thing: Carney should have had an answer yesterday and taxpayers have trust issues.
When the Liberals won the 2015 election, their platform was sparse on details about their future signature policy. The carbon tax was buried on page 39 of their platform as “a price on carbon.”
The Liberal government imposed a carbon tax in 2019 misleading Canadians, saying the tax would stop at 11 cents per litre of gasoline in 2022.
“The commitment was to go up to 2022,” then environment minister Catherine McKenna said, shortly before the 2019 federal election. “There was no intention to go up beyond that, there’s no secret agenda.”
After the election, the Trudeau government announced it would keep cranking up the carbon tax every year until it cost 37 cents per litre in 2030. Filling up a minivan at that rate would cost nearly $30 extra in just the carbon tax.
The current Liberal government still won’t rule out future carbon tax hikes.
The government also claims most families get more back in rebates than they pay in the carbon tax, despite the Parliamentary Budget Officer issuing three reports confirming the carbon tax costs Canadians.
The carbon tax will cost the average family up to $399 this year, even with the rebates factored in, according to the PBO.
Liberal leadership hopefuls who want to earn trust with taxpayers must push the Trudeau cabinet to scrap the carbon tax immediately.
The next Liberal leader faces a daunting timeline.
When Parliament comes back on March 24, there will be a throne speech, then likely a flurry of confidence motions. This could bring down the government and trigger an election.
On April 1, the government is set to hike the carbon tax.
Does Carney want to hike the carbon tax during the first week of his election campaign?
If Carney is as savvy as we’ve been told, then his answer should be a loud “no.”
To prove to Canadians he’s opposed to the carbon tax, Carney must call on the Trudeau cabinet to scrap it right now.
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