.The Texas Energy Report

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.The Texas Energy Report

Military conflict erupts between U.S. and Iran

By Alex Mills

 

January 9, 2019

The recent events in Iraq – the attacks on the U.S. embassy, the death of an Iranian general by U.S., and Iran’s missile attack on an U.S. air base in Iraq – have renewed tensions in the Middle East that have been brewing for 50 years with crude oil at the center of attention.

Countries in the Persian Gulf – Iran, Iraq, Saudi Arabia, Kuwait, United Arab Emirates, and others – have been large exporters of crude oil worldwide with the U.S. being the largest customer.

In 1973, some of these countries decided to reduce their exports to the U.S. because of its support of Israel in its conflict with Egypt. It was the first time that the “oil weapon” was used against the U.S., and it had a dramatic impact: shortage of petroleum products, lines at gasoline stations, rapidly rising prices, inflation, declining economy, and fear of future use of the “oil weapon.”

The U.S. and other countries that imported large amounts of crude oil decided to begin putting large amounts of oil in storage for use in case of another embargo. The U.S. spent billions of dollars to store 625 million barrels of oil in salt domes in Louisiana that became known as the Strategic Petroleum Reserve.

There was another embargo in 1979 as Iran stormed the U.S. embassy and took 52 Americans hostages. Again shortages occurred, prices rose, and the U.S. economy declined.

Politicians screamed at the oil industry, alleging it was the cause of the shortages and rising prices. Congress passed the Crude Oil Windfall Profits Act, which punished domestic oil producers not oil imported into the U.S. The law was later repealed because it collected little revenue as oil prices dropped to as low as $10 per barrel in 1986…….
 

Dinner and Concert Tickets Benefit Victims of Permian Tragedy

January 8, 2019

Tragedy struck the Permian Basin on August 31, 2019 when a senseless shooting took place in the West Texas communities of Odessa and Midland, leaving seven dead and twenty-five injured.

The Permian Basin Community is coming together to provide Texas-sized support for those impacted at the Basin Strong Hope & Healing Benefit Dinner and Concert next Thursday, January 16, 2020. The evening will begin with a Boots & Black Tie Benefit Dinner, followed by a Hope & Healing community concert featuring Rick Trevino and Clay Walker!

For event details, sponsorship levels, to purchase dinner and concert tickets, and for other information, visit www.BasinStrong.com.

—TXOGA

 

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….
 

WTI Up 4% — More Than One Military Base Housing US Soldiers In Iraq Said To Be Under Attack: Officials

NYMEX crude surged $2/b Tuesday after Iran reportedly launched strikes on US military bases in Iraq….WTI jumped more than 4% in the hours after the first attack reports.

 

January 7, 2019

In the most significant escalation of tensions between the US and Iran, at least two bases in Iraq where US and coalition soldiers are stationed have been under missile attack, according to officials…….
 

Bee County Judge Stephanie Moreno Named Executive Director of the South Texas Energy and Economic Roundtable: News Release

January 4, 2020

SAN ANTONIO—South Texas native and Bee County Judge Stephanie Moreno has been named Executive Director of the South Texas Energy and Economic Roundtable (STEER). Moreno will continue to fulfill her duties as Bee County Judge upon her resignation until a new judge can be appointed.

“South Texas has seen tremendous growth and increased opportunity thanks to the oil and natural gas industry, which is a trusted partner to our communities when it comes to economic development, community strength and environmental progress,” Moreno said. “It is an honor to have been selected for this position and I look forward to furthering my work with communities, leaders and residents in the Eagle Ford and the Rio Grande Valley as STEER continues to serve as a strong voice for the oil and natural gas industry in South Texas.”

“Judge Moreno has represented South Texas well as an effective and highly regarded leader. As executive director, her experience and leadership will serve the STEER members well during this pivotal time in our state’s energy industry,” said Teddy Carter, chairman of STEER’s Governing Council.

“Texas is fortunate to have robust oil and natural gas operations that contribute so much to community development, provide hundreds of thousands of jobs and support our schools and roads through billions of dollars paid in taxes and royalties every year. Judge Moreno brings a hands-on approach to meeting the needs of the communities in production areas, understands that economic development is an ongoing process and that collaboration is needed at every level. I look forward to her continued leadership,” added Todd Staples, President of the Texas Oil & Gas Association (TXOGA).

Moreno was appointed Bee County Judge on May 11, 2015 by a unanimous vote of the Bee County Commissioners’ Court. Prior to her appointment to County Judge, she was an Assistant Attorney General in the Office of General Counsel in the Child Support Division under Greg Abbott. During her tenure as Bee County Judge, Moreno served as the President of the South Texas Judges and Commissioners Association. Moreno is a 2001 graduate of A.C. Jones High School in Beeville. She attended Coastal Bend College and received a Bachelor of Arts in Mass Communication from Texas State University. She completed her doctorate of Juris Prudence in 2011 at Western New England University School of Law in Springfield, Massachusetts, and is a licensed attorney in the State of Texas.

 

About STEER (South Texas Energy and Economic Roundtable)

STEER is the leading Eagle Ford Shale resource in the region and is the primary coordinator for communication and public advocacy surrounding the oil and natural gas industry in South Texas. STEER serves as the bridge connecting the industry and communities throughout South Texas to ensure positive collaboration and communication surrounding the activities associated with energy production in the Eagle Ford Shale and Rio Grande Valley. In 2018, the boards of STEER and TXOGA approved the merger of STEER into TXOGA. The merger was finalized on January 1, 2020.