A recent report from the Texas Oil & Gas Association (TXOGA) suggests that the US’s potential to achieve energy dominance is concentrated in the Permian Basin, where capital investment and production in West Texas and Southern New Mexico have reached unprecedented levels.
According to the report, entitled ‘US Energy Dominance Starts in Texas’, 41% of the total upstream deal value in the nation occurred in the Permian Basin (West Texas and Southern New Mexico) with merger and acquisition investments totalling US$25.6 billion in 2016. The report expects total CAPEX for the Permian is expected to increase by 400% over the next five years – from US$8 billion in 2016 to over US$40 billion in 2021.
“Our nation’s ability to achieve and sustain energy dominance rests here in the heart of Texas,” said TXOGA President Todd Staples. “Thanks to rich natural resources, advances in technology, and the know-how to capitalise on tremendous opportunity, Texas is helping to make the United States the global energy leader.”
Staples also noted that oil and natural gas activity in the Permian has spurred billions of dollars in capital investments in expanded pipeline infrastructure, petrochemical manufacturing facilities, additional refining capacity and LNG terminals.
Read the article online at: https://www.hydrocarbonengineering.com/petrochemicals/25082017/permian-basin-leading-the-way/