More Evidence of Boom Time for US (as in "Texas") Oil & Gas

"I wonder whether it’s sunk in to most Americans just how historic the changes going on right now in oil production in the United States really are (see Figure 1),"  economist/blogger Blake Clayton in his recent blog for the nonpartisan Council of Foreign Relations. What's he talking about? 2011's radical trend in the US Oil & Gas business: we're exporting more than we're importing. USA Today calls it a "mini oil boom." 

Figure 1. U.S. Net Imports of Petroleum Products (1993–2011)

 

I have extended family in East Texas. One of the friendliest neighbors there, a 65 year old man, came out of retirement eight months ago to take a full time job to driving 2 hours each way to work five 12 hour shifts a week. What causes a 65 year old man to work 14 hours a day? In this case it ain't desperation, he says the money is too good. (Think strong six figures.) He's a an oil refinery safety manger in Beaumont, TX. The Texas oil & gas refinery industry is going bonkers, scaling up for a big future -- which the media is apparently not covering. Mr. Neighbor says the O & G refineries in this area are expanding so aggressively they've got guys working around the clock, 12 on 12 hour shifts. He says there's nowhere to stay, rent, or live in the Texas refinery zone of Beaumont/Port Arthur, and he says one hour of his commute each day is spent trying to get "from one end of the parking lot to the other" at the plant in Beaumont. 

  

Here's What Refineries Look Like

 

 

Here's a Map of Texas/Louisiana O&G Refineries 2011 (by me)

Map data, via EIA, shows total production per town and rank of refineries 

in each town out of America's top 100 O&G refineries. 

Click to enlarge.

 


 

See an account of oil company profits, 2001-2011 here.
See an account of oil company wealth, relative to the rest of the world's wealthiest industries here.
See an account of Obama's recent call for ending oil subsidies here.

 

 

 

 

 

chris_searles's picture
Submitted by chris_searles on Sun, 02/12/2012 - 9:06am

Comments

Texas has a lot of promise.

Texas has a lot of promise. They need to take advantage of this promise to have some sort of leverage. - Paul Savramis

Keystone XL update

What's perhaps most amazing about all of this today is how little the Oil & Gas industry spends in Washington, given its wealth and profit margins.

On Jan. 30 the Keystone XL Pipeline vote was (re-)introduced as a Congressional vote. This time, however, the vote was co-sponsored by 44 US Senators. Check 350.org for more information on that.

PriceofOil.org http://priceofoil.org/2012/01/30/the-best-bill-oil-money-can-buy/ tells us these US Senators have been given $22.3 million in campaign contributions from Oil & Gas companies since 1989.

That averages out, over the last 22 years, to just $23,037.19 per Senator, per year.

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