The Dallas Federal Reserve meeting featured a discussion of where growth in the global oil supply will come from, and the answer is Texas:
“We expect almost all the growth in 2019 to come from the United States, Canada and Brazil,” she said. “This strong growth in global supply is expected to help moderate pricing.”
The EIA forecasts that U.S. crude oil production will grow by 1 million barrels per day next year. Almost 70 percent of that growth is expected to come from the Permian Basin and Eagle Ford.
“Next year, one out of every three barrels of crude oil growth in the world is expected to come from Texas and New Mexico,” Capuano said.
(Hat tip: Former Texas Agriculture Commissioner Todd Staples.)
Remember all that talk of “peak oil” supply around 2010-2012? Now they’re talking about peak oil demand around 2023…
We recently returned from a driving trip to southern New Mexico. (We live in central Texas.) I can vouch for the vitality of the oil patch out that way. On isolated back roads, you’ll see almost constant traffic in heavy trucks, temporary barracks-like housing springing up, and workers all driving brand new, top-of-the-line pickups. Highways under construction to try to keep pace with the burgeoning industry.
Help wanted signs everywhere. (We saw ads for jobs in Monahans in Brady, 250 miles away.) Anyone with a commercial driver’s license can write his or her ticket. (I’ve read drivers are making $80,000-$100,000 a year.)
Hard, hot, lonely, dusty work–but the pay is hard to beat.
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