It took two years for the Permian Basin to impact the US trade balances and exports. This West Texan shale belt - which extends to part of New Mexico - is a mainstream drilling region for oil and natural gas that’s ahead of entire countries famous for their oil reserves (Iraq and Iran being the most prominent). It now ranks third internationally, behind only Saudi Arabia and Russia. The upshot of this is that the US has firmly established itself as a net exporter of oil in 2018, projected to more than double current exports by 2020.We as a nation are still dependent on heavy crude imported from OPEC and other producers from afar. However, this is more than offset by extracting lighter grade oil surpluses from the Permian and other domestic exploration areas. In June of this year, the US showed net oil exports of 2 million bpd. This already strong net export surge is cited to hit 4 million bpd in the next 18 months or so.Any export item that eats into trade deficits is welcomed. Texas oil entities are a major contributor to making energy resources an export reality. Moreover, federal entities in Texas are benefiting from boosted tax inflows being constructively applied to the improvement of schools, roads, and other infrastructures. In parallel to this, exports ignite inflows of money into the US – a prolific multiplier effect on GDP - that in turn creates jobs and investments.While the Permian (including NM) is the forerunner of this oil industry resurgence, it goes even further afield. South Texas’ Eagle Ford Shale and North Dakota are also in the mix, energizing a fast move to the 4 million bpd export target that looks to be in the cards by 2020.The fact is that US oil refiners are holding back expansion right now. They are at full capacity having to also deal with refining the heavy crude imports, thus necessitating the use of refiners abroad. However, it’s also a fact that the pipeline flow-through from the Permian and other oilfields will soon be increased, alongside extended storage capacity to hold the energy reserves when they arrive at the refineries. Once consolidated, the export targets as expected will be manageable. Oil service companies are investing heavily to get this elevated capacity in place.More specifically, Houston is a forerunner in this expansion move; it is reported that 1 million barrels of storage capacity in Corpus Christi (i.e. Houston) will soon connect to pipelines from the Permian Basin with a carrying capacity of 2 million bpd.In short, the closing of all gaps in transporting the maximum volume of oil and gas to the right places for export is underway. Industry leaders have demonstrated that their organization and innovation in extracting oil more economically from the shale reserves will likewise carry through to refining it – with sustainable balance of payment surpluses as an end result.
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Chase Energy Services
Chase Energy Services is one of the largest privately held integrated oilfield services company in the US, providing end-to-end oilfield services through an experienced management team, innovative technologies and an unrelenting focus on safety. With more than 500 employees, the company serves customers across Southwest New Mexico and West Texas in frac and acidizing, well construction and completion, cementing solutions and well servicing. learn more
Chase Energy Services, Inc.11344 Lovington HWYArtesia, NM 88210(575) 748-1288
