As of April 2014 there were 885 drilling rigs operating in Texas accounting for nearly 1/2 of all rigs in use in the United States.
Texas oil and gas production could last decades
Texas oil and gas production could last for decades. No one really knows for sure but many experts believe it could last for decades. According to a TIME Magazine article, “For all the attention paid to the Bakken in North Dakota and the rising Eagle Ford in South Texas, it’s the reliable Permian — which has already produced 29 billion barrels of oil — that has the most room to grow. “There’s more drilling activity going on in the Permian Basin today than ever before,” says Mitch Mamoulides, Midland-Delaware basin manager for Chevron North America.”
Texas oil and gas production more than all OPEC countries except Saudi Arabia
Texas Oil and Gas Production has increased three fold since 2011. During the spring of 2011 Texas was producing 1.35 million bpd. In April 2014 the state is close to 3 million bpd. Texas has not seen this level of production since 1977.
Texas is ahead of OPEC giants like Kuwait, Qatar and is close to passing Iran in monthly production volumes. According the the U.S. Energy Information Administration (EIA), Texas could surpass China’s oil production by the end of the year. That would be a cool 4.5 million bpd.
With no slowdown on the horizon, Texas keeps nearly 1/2 of all the drilling rigs in the U.S. busy. According the Baker Hughes Rig Count, in April 2014, the average number of rigs being used in Texas was 885. The total across the U.S. was 1,825. Clearly Texas oil and gas production is in full boom mode.
Texas oil and gas operators have best technology in world
According to Dale Nijoka, Ernst & Young’s global oil and gas leader, technology used in Texas oil and gas production has made more leaps than the cutting edge technology coming out of Silicon Valley. As recently as the early 1980s many wells drilled did not produce much oil and gas, if any. Today it is the exception to hit a dry hole. Technology has affected every aspect of energy exploration and production. It is safer, more environmentally friendly and much more efficient than every before.
Because the stakes are so high, technology and new methods of finding and extracting oil and gas are making dramatic improvements on a month by month basis.
Impact of small oilfield service companies on Texas oil and gas production
Technology is helping small and mid-size companies cash in on the Texas oil and gas production bonanza. Knowledgeable industry experts say as many as 30 subcontractors may be involved in working on a single well. These include land clearing companies, site preparation, security, water hauling, drilling crews, wireline crews, roustabout companies, crude oil haulers, caterers, and suppliers of the many materials it requires to take a well through the entire process.
Many of the small and mid-size companies require working capital to finance their accounts receivable as many giants in the industry take 50, 60, 0r even 90 days to pay.
Business Finance Solutions provides multi-asset financing for small and mid-size oil and gas service companies, not just in Texas but across the United States, Canada, and Mexico. If your company is a small or mid-size service company working for giants like Chesapeake Energy, Weatherford, EOG, or Exxon Mobile give us a call at 512-990-8756. We can help you grow profitably by providing working capital to keep your company well oiled for long-term growth.