TIPRO Releases Permian Basin Report Highlighting Record Oil and Gas Production: News Release

January 8, 2020 The Texas Independent Producers & Royalty Owners Association (TIPRO) today released the next edition of its “State of Energy Report” series entitled A Decade of the Permian Basin. The new TIPRO report explores trends in the Permian Basin over the past 10 years with an emphasis on employment, demographics, businesses and oil and natural gas production. TIPRO’s “State of Energy Report” series was developed to further quantify and track the economic impact of domestic oil and natural gas production at the state and national level. As outlined in the report, the Permian Basin is comprised of 63 counties in Texas and New Mexico. The region’s oil and natural gas industry continued to provide unmatched economic support in 2019, directly employing an estimated 87,603 individuals, an increase of approximately 3,200 net new jobs over the previous year. Since 2009, direct oil and natural gas employment in the region increased by 42,833 jobs. These jobs also pay extremely well, with an average annual wage of $98,000, which is 101 percent higher than average private sector wages in the region. Since 2009, oil production in the region has increased from less than 1 million barrels per day (b/d) to more than 4 million b/d in 2019, with some forecasting oil production to nearly double by 2023. In 2019, the United States also officially became the largest producer of oil and natural gas in the world, with the Permian Basin surpassing Saudi Arabia's Ghawar field to become the top producing oilfield. Permian Basin oil production in 2019 increased by 255 million barrels compared to 2018, for a record 1.5 billion barrels produced. Natural gas production also increased by 1.1 trillion cubic feet of gas (Tcf) in 2019 compared to the previous year, for a record 5.3 Tcf of gas, subject to revisions. “Despite substantial gains in oil and gas output, several issues impacted domestic energy production levels in 2019, including takeaway capacity limitations in West Texas, an escalating trade war with China, and capital constraints, which forced more operators to adopt a cash flow yield model and scale back spending on drilling projects,” said Eugene Garcia, chairman of TIPRO and president of Hurd Enterprises, LLC....  
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