Texas accounts for 54% of all U.S. oil and gas employment
The Federal Reserve Bank of Dallas has released its September Energy Indicators, outlining the activity in oil and gas in Texas.
According to the Dallas Fed, oil and gas employment in Texas expanded in August by 1,700 jobs, reaching a total of about 218,500. This change has been due to additions in support activities, which added 2,200 jobs in Texas in August. Overall oil and gas employment in the country totals 403,600, meaning Texas accounts for 54% of the U.S. total.
These additions to employment have corresponded to increases in production, as the massive Permian basin continues to grow. The Dallas Fed reports that Permian production rose by 62,300 BOPD to 2.52 MMBOPD. Current numbers suggest the Eagle Ford also is growing, though the Fed reports that estimates may be revised downward on the effects of Harvey as more data becomes available.
Rig activity in Texas, like in the U.S. overall, has plateaued in recent months. There were 456 rigs operating in Texas as of the last week in August, down from the peak of 466 in mid-July. The largest increases in individual counties were seen in Ward and Martin Counties, which each added three or four rigs. The most productive counites in the Permian and Eagle Ford, Reeves and Karnes Counties respectively, also added rigs. Significant decreases were seen in Pecos, Winkler, Midland, Webb, Atascosa and Starr Counties, which each saw rig counts decrease by three or four.
Natural gas exports increasing, LNG facilities coming online
Natural gas exports from Texas are growing quickly, as the shale revolution continues to make itself felt across the world. Natural gas exports to Mexico via pipeline, the U.S.’s largest gas export market, rose to 4.5 Bcf/d in June, up from 4.2 Bcf/d in May.
LNG exports fell in August, as Hurricane Harvey impeded tanker access to Cheniere’s (ticker: LNG) Sabine Pass. Cheniere reported no substantial damage to its facility, though, and operations should be able to resume without difficulty. U.S. LNG exports are expected to continue to rise through the year, reaching 2.7 Bcf/d by year-end. This increase will be aided by the commissioning of Train 4 of Sabine pass and the activation of the second major LNG facility in the U.S., Dominion Energy’s (ticker: D) Cove Point Facility. Located in Maryland, Cove Point is currently an LNG import facility, but the rise of unconventional production from the Marcellus has pushed the facility to be retooled to export gas. When fully operational, Cove Point will have a total capacity of about 0.75 Bcf/d.
