U.S. oil production under the Trump administration continues to grow, expanding the economy and enhancing national security by making America less dependent on energy from volatile sources and countries.
Texas is doing particularly well in terms of production, reaching new output records, OilPrice.com reports.
Citing figures fromÂ theÂ Texas Independent Producers Royalty Owners Association, the website reported that oil wells in the Lone Star state produced more thanÂ 1.54 billion barrels of crude in 2018,Â topping the previous record of 1.28 billion barrels set in 1973.
That means if Texas were its own country it will become the third-biggest oil producer in the world behind Saudi Arabia and Russia sometime this year.
In addition to oil production,Â TIPRO reported in its annual “State of Energy Report.â€ Natural gas production also grew, reaching 8.8 trillion cubic feet, OilPrice.com reported.
The most lucrative fields in Texas are located in the Permian basin that spreads across West Texas and into New Mexico. It’s one of the most lucrative, prolific oil and gas fields in the United States.
“Record-breaking U.S. oil production is expected to continue for decades, driven largely by the Permian Basin, the U.S. Energy Information Administration (EIA)Â said in its Annual Energy OutlookÂ two weeks ago,” OilPrice.com reported.
“In the outlook’s reference case, the EIA forecasts U.S. oil output, which averaged 10.93 million b/d in 2018, to climb to nearly 15 million b/d by 2027 before flattening out and falling below 12 million b/d by 2050,” the site noted further.
“Shale production in the Lower 48 states will account for nearly 70 percent of domestic production over the next three decades, according to the report. The majority of the growth will take place in the Permian, according to Meg Coleman, leader of EIA’s exploration and production team.”
Price-wise, however, oil rose 1.3 percent Tuesday to $53.10 a barrel on news that the Saudis and OPEC plan to cut production in the coming months.
“Production cuts implemented Jan. 1 by OPEC and allies led by Russia have tightened markets in the face of rising output in non-member countries, including the United States,” CNBC reported.
OPEC plans to cut production by about 800,000 bpd, while the Saudis will reduce production to around 9.8 million bpd, to bolster prices.
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