We believe these economic bright lights have created significant opportunities for natural resources investors.
-Frank Holmes, U.S. Global Investors
Texas has seen incredible changes in oil production because of advancements in shale technology. From one 200-mile view at night, you can easily spot the urban areas of Dallas, Houston, San Antonio and Austin, but the strip just south of the Alamo City and U.S. Global Investors’ headquarters illuminates something else entirely: the bright lights of big oil generated by the Eagle Ford shale formation.
In its new report pictured here, the University of Texas at San Antonio provides more than just a satellite view of oil production in the area.
First, take a look at Texas’ overall crude oil production during the past few decades. Since hitting about 2.6 million barrels of oil per day in 1981, production began slowly declining, bottoming to just over 1 million barrels per day during the early part of this century, according to the U.S. Energy Information Administration (EIA).
Over the past few years, though, daily production has gone vertical, with the state pumping out more than 2.2 million barrels each day. Production has grown so rapidly, that if Texas were a country, it would be the 13th largest oil-producing nation in the world, based on international crude oil output from November, says Mark Perry in his Carpe Diem blog.