For the first time in more than thirty years, the Lone Star State has seen oil production rise above 3 million barrels per day. The highly productive Eagle Ford and Permian Basin zones have placed the state on track to hit 3.4 million barrels per day by the end of 2014, when only a year ago production topped out at approximately 2.4 million barrels per day.
The light, sweet crude oil produced by these regions has made Texas one of the world's preeminent oil producers. Currently, the state is responsible for greater than a third of total U.S. output, and itself ranks above Kuwait, Venezuela and Brazil in total production.
The oil boom has also brought new life into many parts of the state, with capital spending topping $44 billion in the Eagle Ford and Permian Basin areas this year alone, according to Nasdaq's Investors Business Daily.
The benefits of increased production spread far beyond the state's borders, as the crude produced is driving down benchmark oil prices and creating significant discounts. Tom Kloza, GasBuddy's chief petroleum analyst, recently told U.S. News that "the discounted WTI comes in the Permian Basin where the West Texas Intermediate crude near Midland sold numerous times for double-digit discounts."
The stellar growth in Texas is largely thanks to oil drilling companies investing in new areas, new pipelines and initiatives to increase efficiency. In the current market, the organizations that can adjust to changing regulations rapidly and identify new opportunities first become the dominant players. Oil and gas strategy consulting can help to ensure that efforts lead to maximum productivity, and the state maintains its current standing as a major player in the global energy market.