Every time it seems that the domestic oil and gas boom is about to end, producers set new records. That's what is happening in Texas now, according to a new report by the Texas Alliance of Energy Producers.
Despite an initial slowdown that was predicted to occur last year, Texas is now on track to surpass its 1972 record for crude oil production within two years.
As reported by the Houston Chronicle, experts like Karr Ingham, an economist with the Texas Alliance of Energy Producers, thought production was sure to decrease as a result of lower energy prices. However, events around the world have managed to remove that threat from the industry. Political unrest in Ukraine, sanctions on Russia and sectarian turmoil in Iraq have significantly disrupted global oil supplies, keeping prices above $100 per barrel. As a result, Texas producers still have plenty of reasons to keep pumping.
"It looks to me you'd have to have a fairly dramatic set of circumstances to prevent that from happening," Ingham said.
indeed, the news source added that the number of oil and gas rigs in Texas is up 6 percent over the previous year, at a total of 891. This industry is now contributing significantly to the state's overall employment numbers, with nearly 300,000 Texans working for oil and gas companies. That still doesn't take into account the many more businesses that are benefiting from this growth.
Constant production will eventually put a strain on rigs and the infrastructure that transports crude oil to refineries, but that is no reason to stop. CNC machine services can create custom parts for the industry as needed.