Under Trump, Texas Will Pump More Oil Than Iran
Countries gain power from their economies, not their rhetoric. Trump understands that. Obama never did.
This is how you take on Iran, Iraq, the Saudis and Russia in a very direct sort of way.
All the speeches in the world won’t change the world. And a powerful nation needs a powerful economy. Not just the overvalued FANG stocks, some of whom are hollowing out the economy, but actual production. Islamic terror feeds off oil. For that matter so does Russian expansionism. Obama crippled our energy sector with sun worshiping environmentalist boondoggles.
But here’s what happens with an unleashed economy.
Plunging drilling costs have sparked an explosion of production out of the Permian Basin of West Texas. In fact, Texas is pumping so much oil that it will surpass OPEC members Iran and Iraq next year, HSBC predicted in a recent report.
If it were a country, Texas would be the world’s No. 3 oil producer, behind only Russia and Saudi Arabia, the investment bank said.
Much of the excitement in Texas centers around the Permian Basin. Some oil execs believe the amount of oil in the Permian rivals Saudi Arabia’s Ghawar Field, the world’s largest conventional oilfield.
Rapid technological advances have dramatically brought down the cost of pumping oil everywhere, especially out of the Permian. Wells there can be profitable below $40 a barrel.
“The industry cracked the code on fracking,” said McNally.
The combined output of the Permian and Eagle Ford is expected to rise from just 2.5 million barrels per day in 2014 to 5.6 million barrels per day in 2019, according to HSBC. That means Texas will account for more than half of America’s total oil production.
By comparison, Iraq’s daily production is seen at about 4.8 million barrels, while Iran is projected to pump 3 million. Oil supplies from Iran are likely to plunge due to tough sanctions from the United States.
And Trump is causing an even worse problem.
At the same time, oil executives are complaining that it’s difficult to find employees. The challenge is magnified by low unemployment in Texas and nationally.
If only President Hillary could be there to crack down on oil production and create more unemployment.