According to a report this week, Texas is on pace soon to become the world’s third largest oil producer, edging out all other countries except Russia and Saudi Arabia. It’s a massive endorsement for free market principles. Especially given that it marks an historic turnaround from the oil glut and resultant plunge in prices just a few years ago. It’s also a reminder of what can be accomplished when the federal government gets out of the way of private industry.
Here’s more from Hot Air…
America is a powerhouse and I mean that literally as well as figuratively. CNN Money reported Wednesday that Texas is set to become the world’s number three oil producer thanks to a boom in production:
Plunging drilling costs have sparked an explosion of production out of the Permian Basin of West Texas. In fact, Texas is pumping so much oil that it will surpass OPEC members Iran and Iraq next year, HSBC predicted in a recent report.
If it were a country, Texas would be the world’s No. 3 oil producer, behind only Russia and Saudi Arabia, the investment bank said.
“It’s remarkable. The Permian is nothing less than a blessing for the global economy,” said Bob McNally, president of Rapidan Energy Group, a consulting firm…
“The industry cracked the code on fracking,” said McNally.
Texas is producing so much oil that it will soon be bumping up against pipeline capacity. Some producers are already selling at a discount because of the limitations. Another problem is a shortage of labor, though that will likely be good news for the state and for people moving to Texas to find work.
The boom in Texas is one reason the U.S. is set to become the world’s number one oil producer. Last week, U.S. production reached an all-time high of 11 million barrels per day.