.The Texas Energy Report

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.The Texas Energy Report

The Texas Oil and Natural Gas Industry is Fueling The Future Through Investments in Education: TXOGA

August 29, 2019
All across Texas, students, their parents, teachers and school administrators are getting back into the swing of things as this new school year has started. While curriculum, classroom materials and technology have changed over the decades, one thing has remained constant – the meaningful impact the Texas oil and natural gas industry has had in the success of our state’s education system.

Billions of dollars from Texas oil and natural gas activity is paid each year into our state’s Permanent School Fund and Permanent University Fund. The Permanent School Fund recently became the largest educational endowment in America and is valued at over $44 billion – money that will be available for our state’s public schools in perpetuity. And because of the money generated by West Texas oil and natural gas, UT Austin is using millions from the Permanent University Fund to offer free tuition to students with family income less than $65,000 starting next year.

The Texas oil and natural gas industry also pays property taxes to independent school districts, accounting for millions of dollars each year for public schools in the state. In some communities, the oil and gas share of the school district’s tax base tops 70, 80 and even 90 percent – money that is used to enhance learning, upgrade technology and safety equipment, and hire and retain the best teachers.

Beyond tax dollars and royalty payments, the Texas oil and natural gas industry is investing untold time, talent and treasure in Texas schools and their students and teachers through innovative education programs and productive partnerships aimed at providing a state-of-the-art education for the next generation of Texans.

In 2015, Midland ISD, Midland College and West Texas oil and natural gas operators such as Pioneer Natural Resources joined together to launch the Petroleum Academy, a program that allows local high schoolers interested in a career in oil and natural gas to receive hands-on, real-world experience in the industry by learning directly from energy employees in their classrooms. The program also includes field trips to training facilities and site tours and internships for seniors looking to join the workforce straight out of high school.

The Texas A&M-Chevron Engineering Academies, available at four two-year colleges in Texas, allow students to remain close to home for the first two years of their studies while putting them on a path toward a four-year engineering degree from Texas A&M University. The program, which was seeded by a $5 million gift from Chevron, has been lauded not only for its potential impact on underserved communities and the number of STEM degrees awarded in our state, but also for the affordability it offers many first-generation college students. The program has also expanded to include several more two-year colleges and brought on additional industry partners such as Concho Resources.

The Texas City ISD Industrial Trades Center is the result of a forward-looking collaborative effort to prepare local high school students in Galveston County with the education needed to learn skilled trades and pursue careers with local companies. The program has a strong partner in the area’s oil and natural gas operators including Marathon Petroleum and Valero. Both companies were prominent in driving the development and funding of the Center, creating curriculum that prepares students for the industry’s needs, and donating equipment and supplies. Marathon Petroleum also established a STEM LAB at Texas City High School.

The CITGO Innovation Academy for Engineering, Environmental & Marine Science at Moody High School in Corpus Christi creates a rigorous four-year college preparatory program that includes upper-level engineering, mathematics and science courses, with the goal of graduating students who are college or career ready.

Exxon has been a consistent advocate of STEM education. Worldwide, the company has contributed $1.25 billion to education programs since 2000. Here in Texas, Exxon champions numerous programs that aim to inspire and prepare students for a career in the energy industry, including STEM camps, professional development camps for STEM teachers and “Introduce a Girl to Engineering” events featuring company employees demonstrating their experiences within the energy industry.

The Energy Institute in Houston was the first high school in the U.S. created for the sole purpose of preparing students for careers in the energy sector and is backed by strong partnerships from multiple Texas oil and natural gas companies including BP, Phillips 66, Noble Energy and Schlumberger. These partners host field trips, provide guest speakers, and fund student activities.

Shell has been a long-time sponsor of the National Science Teachers Association, and, for the past 23 years, has sponsored the Shell Science Teaching Award, which recognizes outstanding science teachers and provides makeovers for science laboratories.

The Oilfield Energy Center in Houston offers schools across Texas the opportunity to experience their Mobile Oilfield Learning Unit – otherwise known as a MOLU. This traveling exhibit features curriculum-based, hands-on activities about energy and technologies and sciences involved with the oil and natural gas industry.

From the Panhandle to the Gulf Coast, in communities rural, suburban and urban, Texas oil and natural gas companies are steadfast partners in efforts to expand and improve STEM programs. These efforts are critical because data shows that not enough students are pursuing STEM careers to meet the oil and natural gas industry’s workforce needs. The industry will need to hire nearly 1.9 million oil and natural gas workers between 2015 and 2035 so expanding STEM education opportunities is will be critical to keep Texas competitive in an ever-changing world.

Luckily for Texas students, jobs in the oil and natural gas industry are among the highest paying in the state. And while we know there is a projected shortage of STEM-educated workers, the industry isn’t just made up of the engineers and scientists. Job opportunities vary widely and require diverse backgrounds, including attorneys, architects, accountants, truck drivers, carpenters, welders, human relations, business and public relations.

As the Texas oil and natural gas industry grows to meet the energy demands of our state and nation, so does the need for future generations of Texans to fill the various roles required to see this growth continue. Through high-quality, innovative, hands-on educational opportunities, Texas oil and natural gas companies are ensuring that even more Texans will have the opportunity to work in an industry that is growing our economy, securing our future, and making life better for people here in Texas and across the world.


 

TIPRO Mid-year Energy Report Highlights Record Oil and Gas Production, Continued Industry Employment Growth: News Release

August 29, 2019

Austin, Texas – A new report released today by the Texas Independent Producers & Royalty Owners Association (TIPRO) shares insight into oil and gas production and employment trends over the first half of 2019. TIPRO’s 2019 Midyear Texas Energy Report, part of the association’s “State of Energy” report series, projects the oil and gas industry supported 365,511 direct jobs in the state of Texas during the first half of the year, representing an increase of nearly 10,000 jobs over the previous year. On average, oil and gas jobs in Texas paid 134 percent higher wages than the private sector, with annual industry wages averaging $130,000 and a total state payroll of $47 billion, cites new findings from the TIPRO report.

“The Texas oil and gas industry remains a powerful employer in the Lone Star State, as evidenced by findings of the new mid-year TIPRO report,” said Eugene Garcia, chairman of TIPRO. “In the first half of the year, the Texas oil and gas industry accounted for 40 percent of all oil and gas jobs nationwide.”

Overall job growth in the industry has aligned with historic levels of oil and natural gas production in the Lone Star State, although TIPRO forewarns of a potential slowdown in hiring in the second half of 2019. As the nation’s top producing state, in the first half of 2019, oil production increased by 131 million barrels compared to the first half of 2018, for a total of 882 million barrels produced in Texas. Natural gas production in Texas also rose by 580 million cubic feet of gas in the first six months of the year compared to the first half of 2018, notes TIPRO, for a total of 4.9 trillion cubic feet of gas. Oil and natural gas production in Texas is on track to break all previous production records in the state for the full year of 2019, with estimated production expected to surpass 1.7 billion barrels of oil and natural gas production potentially exceeding 10 trillion cubic feet.

Strong production gains in Texas this year have primarily been driven by soaring production from the Permian Basin, the nation’s most prolific oil producing area located in West Texas and eastern New Mexico. Crude oil production from the formation today accounts for nearly two-thirds of Texas oil production, says TIPRO.

As of mid-August, the Texas rig count hovered near 450, representing approximately half of all active rigs in the United States. According to Enverus (formerly DrillingInfo), over the last year, the Anadarko Basin has accounted for 33 percent of the decline, or 55 rigs. The Permian Basin experienced the second-largest rig count decline among U.S. basins during this period, dropping 42 rigs, which accounts for 25 percent of the total U.S. rig count decline. The Gulf Coast has seen the third-largest decline, dropping 37 rigs over the last year. Together, these three basins make up 79 percent of the decline in active rigs over the last year.

Although oil and gas production keeps climbing in Texas, the number of drilling permits issued from the Railroad Commission of Texas through the first half of 2019 has also gone down, TIPRO observes. State data shows that in July the commission issued a total of 912 well permits, down from 1,001 issued in June, and from 1,153 approved last July. The number of oil, gas and injection well completions also dipped in July to 699, compared to 940 over the same time last year. Total well completions processed for 2019 year to date are 5,749, according to the Railroad Commission, a drop from 6,514 recorded during the same time period in 2018….
 

Federal energy report indicates more secure supplies

By Alex Mills

 

August 29, 2019

The Energy Information Administration at the US Department of Energy announced last week that petroleum and natural gas production in the US set a record in 2018. This week EIA released energy consumption figures revealing it set a record last year, too.

“Energy consumption in the United States reached a record high of more than 101 quadrillion British thermal units (quads) in 2018, barely surpassing the previous high recorded in 2007 by less than 0.3 percent,” EIA stated.

Energy consumption data is divided into two sectors: transportation and electricity, with petroleum products yielding the largest source followed by natural gas.

Fossil fuels (coal in addition to oil and gas) generated 80 percent of energy consumed in 2018 in the U.S. Renewables (hydroelectric, wind, solar, wood and biomass) generated 12 percent, and nuclear provided 8 percent, according to EIA…..
 

There Will Be Major O&G Consolidation, Bottlenecks In Corpus Christi Exports: Report

August 28, 2019

Major oil operators will produce more than half of Permian Basin oil over the next five years, representing a shift in power that squeezes independents — and with Corpus Christi an increasing destination for oil and gas, permitting and execution delays will cause bottlenecks, a new white paper from Hastings Equity Partners and the University of Houston Energy Research predicts.

Texas ports need new accommodations for VLCCs, but the long-term outlook for O&G services companies can be good if they present cost savings or “incremental production.”

The report, Opportunities and Challenges in the Permian, says that with major O&G producers owning their own refineries they no longer need to purchase crude from independent producers, so locating new and foreign customers has become the job of independents…….
 

NRC Continues Consideration of West Texas High-Level Radioactive Waste Site, Rejecting Public Citizen Arguments

August 26, 2019

Despite granting Public Citizen‘s wish to take part in testimony in the licensing of a high-level radioactive waste dump in West Texas, the US Nuclear Regulatory Commission (NRC) has rejected all but one of the public advocacy organization’s arguments against the licensing…..
 

RRC Commissioners Assess More Than $1.2 Million in Penalties

August 26, 2019
 
The Railroad Commission of Texas assessed $1,264,033 in fines involving 439 enforcement dockets against operators and businesses at the Commissioners’ conference last week.

The Commission has primary oversight and enforcement of the state’s oil and gas industry and intrastate pipeline safety.

Eighty-seven dockets involved $424,539 in penalties after operators failed to appear at Commission enforcement proceedings.

Details on these Master Default Orders can be found on the RRC website here.
 

Attracting Energy Cash May Be Difficult for Trump Now, But GOP Rivals Are Doing Worse: Research

August 22, 2019

President Donald Trump has been having trouble attracting energy company campaign contributions that will likely flow eventually, but such problems pale when compared to his possible GOP rivals, according to new reports from a Washington research organization.

Center for Responsive Politics (CRP) research indicates wide skepticism of Mr. Trump’s trade tariff efforts, despite his pro-energy agenda.

And while there are indications that the Trump 2020 campaign will be receiving unexpected support from a number of political sectors, and while research into expected donations is already underway, the fact that the vote remains well more than a year away renders much of the research speculative.

Still, oil, gas, coal and other energy money will likely be crucial to the entire election cycle again over the next 14 months, and the landscape will be even more complicated than the most recent election….
 

Battery issues confront development of electric vehicles

By Alex Mills

August 21, 2019

The automobile industry has searched for several decades for the solutions to the many problems it faces in developing vehicles powered by batteries solely.

General Motors (GM) has a long history in trying to develop its EV1 electric car but discontinued that effort in 2003, but continued to offer hybrid vehicles, which operate on battery power with gasoline powered engines as backup.

However, The Wall Street Journal reported this week that GM and Volkswagen say they see no future for hybrids and they will concentrate fully on electric vehicles.

GM will develop some 20 styles of electric vehicles (plug-in) during the next four year under the Chevrolet and Cadillac brands….