Oklahoma energy companies taking part in the oil exploration of the Permian Basin in West Texas can take some of the credit that Texas is about to become the third-largest oil producing region in the world.
The state is ready to move past Iraq and Iran and trail only Russia and Saudi Arabia. While much of the credit goes to the Permian Basin explosion of oil production, the state also has its prolific Eagle Ford play and other areas.
CNN Money reports that HSBC Bank predicted in a recent report that the state’s explosive growth in oil production over the last two years could result in Texas passing the two Organization of the Petroleum Exporting Countries (OPEC) members as oil prices rise around the world.
“It’s remarkable. The [Permian Basin oil field] is nothing less than a blessing for the global economy,” Bob McNally, president of Rapidan Energy Group, told CNN.The surge in production comes just two years after the oil fields in Texas were seeing much lower production levels at the tail end of the Obama administration, according to CNN.
“In 2014, it was amazing. 2016 was down in the dumps. Two years later, it’s back to crazy,” Texas railroad commissioner Ryan Sitton told the news network.
Production cutbacks in Russia and OPEC nations have also led to a rise in U.S. oil prices, a boon for the economy as companies in Texas struggle to find qualified workers and the infrastructure required to support the surge.
“To say there’s a shortage of bodies is an understatement,” Jeff Bush, president of CSI Recruiting president, told CNN. He said lower production under the Obama administration had left companies struggling to adjust to the economic boom in time.
“These service companies took it on the chin the last few years. They’re trying to make hay while the sun shines, but you can’t do that if you don’t have people,” he said.
“Right now, everything’s an issue: Water, sand, buildings, transportation. You name it,” Sitton added.
President Trump tweeted last month that he had spoken to Saudi Arabia’s King Salman, urging him to increase oil production to counter rising prices.
“Just spoke to King Salman of Saudi Arabia and explained to him that, because of the turmoil & disfunction in Iran and Venezuela, I am asking that Saudi Arabia increase oil production, maybe up to 2,000,000 barrels, to make up the difference…Prices to high! He has agreed!” Trump said in June.