POSTED: Thursday, July 11, 2013 - 7:04pm
UPDATED: Saturday, July 13, 2013 - 10:54am
Texas old timers know, the oil business can be feast or famine.
Right now though, Texas is feasting on an oil boom that is the best in almost three decades.
The first written account of oil in Texas was 1534 when a Spanish explorer saw it floating in Galveston Bay.
300 years later in 1894, a water drilling company accidently struck oil near Corsicana and 5 years later, Magnolia Oil opened a refinery there.
Then in 1902 came the Spindletop strike near Beaumont. It was the beginning of the Texas oil industry and companies that are now household names like Texaco and Exxon. And for the state it has been boom or bust, but right now, it’s boom.
Just a few years ago, many were predicting that oil production had peaked, and we were on the downside of the production bell curve. But new techniques have doubled Texas oil output in less than 3 years.
If Texas were a member of OPEC, we would rank in the top 15 countries with Kuwait, Venezuela or Nigeria.
Texas production in the Spring reached a level not seen since 1984. More than a third of the 221 million barrels of crude produced in the US in April came from the Lone Star State.
The state is reaping huge profits from the industry, and as the BP spill proved, facing some huge risks.
But for the state of Texas, nearly 2 million jobs and billions of dollars in royalties make the risk worthwhile.