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Texas petroleum industry had unusual year

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Texas petroleum industry had unusual year


The petroleum industry in Texas had an unusual year in 2023: it produced more crude oil and natural gas in the state’s history, but declining exploration and production indicators could be sending a different message about the future.

The Texas Petro Index, a monthly measure of growth rates and cycles in the Texas upstream economy, fell for 11 consecutive months in 2023 from 178.3 in December 2022 to 154.4 in December 2023, which is a decline of 13.4%.

“Rising crude oil and natural gas production and still-growing industry employment were unable to offset lower prices, fewer rigs at work, and lower values of statewide production, pushing the TPI downward in 2023 after the January peak,” said Karr Ingham, Petroleum Economist for the Texas Alliance of Energy Producers, and the creator of the TPI analysis. “But Texas oil and gas producers, with extraordinary efficiency and productivity gains on full display, still managed to grow production significantly, setting new records for statewide output along the way.”

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Statewide crude oil production in Texas surpassed two billion barrels for the first time ever in 2023, and reached a record 5.62 million barrels per day in December 2023, Ingham said. Daily production, which peaked pre-COVID at 5.45 million barrels in March 2020, finally reached and exceeded that level fully three years later in March 2023. Texas annual crude oil production in 2023 outpaced the 2022 annual total by a stout 8.5%, and comprised 42.6% of U.S. annual production.

Texas natural gas production exceeded 12 trillion cubic feet (TCF) for the first time at an estimated 12.5 TCF in 2023, an increase of 7.4% over the 2022 annual total, Ingham said.  

“Surprisingly, however, these milestones were accomplished with a significant and sustained decline in the statewide rig count and fewer drilling permits issued over the course of the year,” Ingham said. “The Texas rig count climbed to its post-COVID high of 379 in January 2023, and then fell by 76 rigs to 303 in November, before adding four rigs in December. At year-end 2023 the rig count was down by nearly 18% compared to the December 2022 monthly average.”

At the same time the number of drilling permits declined by 16.5% in 2023.

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It is unusual that production would increase by such a substantial margin (8% for oil and 7% for natural gas) while the drilling permits and the rig count decline by 18% and 16%, respectively.

Additionally, all of this occurred with a workforce that is a third smaller than it was 10 years ago.

“Texas is increasingly leading the way in terms of supply growth domestically and globally, helping to meet the ever-growing demand for abundant, affordable, and reliable energy at home and around the world,” said Ingham. “For this, oil and gas operators in Texas of all shapes and sizes are worthy of thanks, not scorn, and their accomplishments in powering our economy, improving our everyday lives, and enhancing America’s energy security should be widely celebrated.”

Alex Mills is the former President of the Texas Alliance of Energy Producers



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Texas sues Netflix, alleges platform spied on kids and collected data

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Texas sues Netflix, alleges platform spied on kids and collected data


The state of Texas announced a lawsuit against streaming giant Netflix on Monday, accusing the company of spying on children and other consumers by collecting their data without consent and designing the platform to be addictive.

Texas claims that Netflix has falsely represented to consumers that it didn’t collect or share user data while it actually tracked and sold viewers’ habits and preferences to commercial data brokers and advertising technology companies.

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The lawsuit, filed by Texas Attorney General Ken Paxton, claims that “Netflix’s endgame is simple and lucrative: get children and families glued to the screen, harvest their data while they are stuck there, and then monetize the data for a handsome profit.”

The state of Texas announced a lawsuit against streaming giant Netflix on Monday. (Nikos Pekiaridis/NurPhoto via Getty Images)

“When you watch Netflix, Netflix watched you,” Texas added in the lawsuit.

NETFLIX CO-FOUNDER REED HASTINGS TO STEP DOWN, DEPARTURE IS ‘SPOOKING INVESTORS’

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The complaint quotes comments made by former CEO Reed Hastings who said in 2020, while he was still leading the streaming company, that “we don’t collect anything,” amid questions over Big Tech companies’ data collection practices.

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Netflix was also accused of quietly using “dark patterns” to keep users watching on its platform, such as an autoplay feature that starts a new show after a different show ends.

NETFLIX RAISES SUBSCRIPTION PRICES ACROSS ALL PLANS

Texas Attorney General Ken Paxton filed the lawsuit. (Cheney Orr/Reuters)

Paxton said in a press release that Netflix “has built a surveillance program designed to illegally collect and profit from Texans’ personal data without their consent, and my office will do everything in our power to stop it.”

The attorney general said he’s charging Netflix under the state’s Deceptive Trade Practices Act and seeks to require Netflix to stop the unlawful collection and disclosure of user data, require Netflix to disable autoplay by default on kid’s profiles, and to secure injunctive relief and civil penalties.

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FOX Business reached out to Netflix for comment.

Reuters contributed to this report.



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6 people found dead inside a boxcar in Texas, officials say | CNN

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6 people found dead inside a boxcar in Texas, officials say | CNN


Six people were found dead inside a cargo train boxcar in a Texas city along the southern border on Sunday, officials said.

The bodies were found in a Union Pacific train at a rail yard in Laredo, around 160 miles south of San Antonio, just after 3:30 p.m. local time, said Jose Espinoza, a public information officer with the Laredo Police Department.

The circumstances of their deaths are unknown, said Laredo police spokesperson Joe Baeza, according to CNN affiliate KGNS, and an investigation is underway.

Union Pacific operates across the border and is the only railroad that services all access points into Mexico, according to the freight company’s website.

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Temperatures on Sunday afternoon in Laredo were in the low-mid 90s, though it’s unclear whether heat was a factor.

Union Pacific said it was saddened by the incident and is working closely with law enforcement to investigate.

Laredo police said they received a call around 3 p.m. from an employee at the Union Pacific rail yard, KGNS reported. The bodies were discovered during a routine rail car inspection, police said. No survivors were found.

CNN has reached out to Laredo police for more information.

“It’s a very early phase of the investigation. There’s not a lot to reveal right now,” Baeza said, KGNS reported.

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The immigration status and ages of the deceased are not yet known, Espinoza said.

US Customs and Border Protection referred CNN to the Laredo Police Department, saying “The incident remains under investigation by Laredo Police Department and Homeland Security Investigation and Texas Rangers.”

CNN has reached out to the Department of Homeland Security, HSI and the Texas Department of Public Safety.

“It’s a very unfortunate event,” Espinoza told CNN. “It was too many lives that were lost.”

This story has been updated with additional information.

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Gov. Abbott activates state emergency resources ahead of severe storm threat

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Gov. Abbott activates state emergency resources ahead of severe storm threat


Gov. Greg Abbott on Sunday directed the Texas Division of Emergency Management to activate state emergency response resources as a massive storm system threatens much of the state with hurricane-force winds, giant hail, and the risk of tornadoes.

Severe weather in Texas

The severe weather, expected to last through Monday morning, covers a vast footprint including West, North, East, Central, and South-Central Texas. Forecasters warned the system could produce wind gusts exceeding 75 mph and hail larger than 2 inches in diameter.

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What they’re saying:

“Texas is prepared to confront the severe storms that pose a threat to communities all across our state,” Abbott said in a statement. He urged Texans to monitor local forecasts and warned motorists never to drive through flooded roadways, invoking the phrase, “Turn Around, Don’t Drown.”

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Heavy rainfall is expected to be widespread, with some areas potentially seeing isolated totals of 3 to 6 inches, which could lead to significant flash flooding. As the system progresses, the threat is expected to shift toward the South and Southeast Texas coasts.

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In preparation, the governor has deployed a wide array of state assets to assist local officials, including:

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  • Search and Rescue: Swiftwater and floodwater rescue boat squads and urban search and rescue teams from Texas A&M Task Forces 1, 2, and 3.
  • Aviation and Marine Support: Helicopters with hoist capabilities from the Department of Public Safety and Texas Parks and Wildlife, as well as Tactical Marine Units.
  • Infrastructure and Recovery: Texas Forest Service saw crews to clear debris from roads and Department of Transportation personnel to monitor highway conditions.
  • Medical and Utility Support: Emergency medical task forces with ambulances and all-terrain vehicles, along with monitors from the Public Utility Commission to coordinate power outage responses.

State agencies are also monitoring the state’s natural gas supply and water quality as the storms move through.

Officials encouraged residents to assemble emergency kits and check road conditions at DriveTexas.org before attempting to travel.

The Source: Information in this article is from the Governor Greg Abbott Press Office.

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