Texas: The Oil Star State

A combination of inexhaustible reserves and innovative technologies have propelled Texas to the top of the list of energy-producing states. In the U.S., the Lone Star State leads in oil reserves. It produces the highest amount of oil, natural gas, and lignite coal. The state also yields more wind power than any other state.

Even globally, Texas is an energy powerhouse. According to the American Petroleum Institute, the state ranks second in the world for natural gas production and seventh in oil. In 2015, an average of 3.4 million barrels of oil per day was produced, which is almost the same output level of known middle eastern major oil exporters Iran and United Arab Emirates.

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Image source: kut.org

As oil and natural gas production from shale has flourished, incomes have been raised, and utility rates were reduced. These have allowed Americans to save an equivalent of $1,200 in real disposable household income.

The boost in energy production has also helped the establishment, reopening, and expansion of businesses in the chemical and manufacturing industries. These have led to an industry output of $37 billion and the creation of 81,000 permanent jobs back in 2013, according to then Governor Rick Perry.

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Image source: frontiers-of-solitude.org

With Texas continuing to fuel the nation’s hydrocarbon production, supplying 20 percent of the U.S. oil output, continuous economic progress, less reliance on foreign oil, and energy independence as a nation is on the horizon.

Primera Energy LLC, an oil and gas industry leader in Texas, is helmed by Brian Alfaro. He has hopes for the nation to be self-sufficient in energy and fuel supply. Learn more about energy by following this Twitter account.

A Better View of Horizontal Drilling

People often think of drilling as going straight down through the ground. However, in oil extraction, there is a method more efficient than vertical drilling. Horizontal drilling is the process in which the well changes direction horizontally at a depth. The drilling will start with a vertical process first then turn horizontally at a certain entry point. This technique can reach and collect more energy with fewer wells. It is known to be the best strategy for drilling shale rocks.

Image source: rigzone.com

Image source: rigzone.com

Although this type of drilling has a more intricate process, it has been proven by geological research that it yields more benefits than the conventional one. Targets and reservoirs that cannot otherwise be reached through vertical drilling can be tapped through the horizontal method. It can reach natural oil deposits trapped in tight shale formations located more than a mile below the ground.

Another benefit of horizontal drilling is its ability to reach large areas with just a single drilling pad. When this directional drilling is combined with hydraulic fracturing, it can convert unproductive shale rocks into reservoir rocks. There are more benefits such as: installing underground facilities, sealing out-of-control wells, and improving the productivity of wells.

Image source: test.wmprocess.com

Image source: test.wmprocess.com

Primera Energy LLC is a company that uses a horizontal drilling process along with other innovative techniques. Brian Alfaro is the President of this company. Visit this page to read more articles about the energy industry.

Beyond Doom and Gloom: The Need for Sustained Investments in Energy

Image source: thenewstribe.com

Image source: thenewstribe.com

Should current oil prices continue to hold sway long into the new year, a gradual reduction of investments in crude oil exploration could be seen, particularly in domestic markets from oil producing nations such as the United States. Although logical on the surface, held back investments are not intelligent moves in the long run, as low prices will rule only the foreseeable future, and not the long term.

Paradoxically, the glut of oil would eventually become a liability should a stable price floor remain elusive. A prolonged drop in price could render much of the domestic oil production unprofitable, undoing much of the progress of the past few years. In time, as the prices rise again, a spike in prices will again manifest as the country once again becomes dependent on petroleum imports for energy. And while investments would eventually return, their production would lag too far behind demand to stabilize prices.

The shrinking of oil investments can lead to long term problems in domestic and global energy security. The 2015 World Oil Outlook predicts that, to prevent massive shortages, the global economy would need around $10 trillion of new investments by 2040.

Image source: businessinsider.com

Image source: businessinsider.com

Thus, to safeguard the continued stability of energy prices, investments in the energy sector must be protected. In the meantime, investors in oil production continue to play the waiting game, rolling back expansion without a price turnaround in sight. These stalwart companies and individuals would find that their risk-taking places them in a unique position of ensuring future energy security as the glut comes to its eventual end.

And while the oil market’s long night continues, demand slowly but surely begins to pick up.

Brian Alfaro leads Primera Energy LLC, a leading petroleum production company with significant interests in the Eagle Ford and Barnett shales in Texas. Visit this website for more updates on the energy sector of the U.S.