Texas Economy IV April 21, 2016

Texas Oil Production

Why is the rig count falling?

Price of Oil per Barrel WTI stands for West Texas Intermediate. Current price: $38.20

What is this producing region called? Permian Basin

New production took place because of new technology and high prices that make the development of shale oil and gas cost effective.

Which is the largest producer? Eagle Ford

Tight oil = shale oil

This chart is for Corpus Christi only.

Oil companies drill deep underground and then drill horizontally into the shale formation. Fracking penetrates the shale by using a high-pressure mix of water, sand, and chemicals to blast through rocks to release the oil inside. The oil industry estimates that shale production will create more than 2 million new jobs, either directly or indirectly, and pump tens of billions of dollars into the economy.

Fracking is Controversial Environmentalists worry about the impact of pumping thousands of gallons of water and chemicals underground. Some residents report the contamination of surface and subsurface water supplies from fracking fluids. Moreover, the volume of water needed places enormous strains on water resources.

The current price of a barrel of oil is closest to which of the following figures? A) $100 B) $200 C) $2.69 D) $40 D is the answer

What You Have Learned Why is the Texas oil and gas industry booming? What is shale oil? Where is it located in Texas? What is fracking and why is it controversial?