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The Permian Basin Boom: How West Texas Is Changing The Oil And Gas Landscape!

Posted by Apache Companies on Jan 21, 2019 12:13:07 PM

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The Permian boom is transforming America’s place in global energy markets almost overnight.

Until recently, the government had prohibited American producers from exporting crude oil at all, a policy created and upheld since the 1970s, when energy shortages racked the nation.

But in the first decade of the new millennium, West Texas fracking and horizontal drilling opened vast new reserves of previously untapped oil.Thus, America changed its public policy as well.

In December 2015,a bill, negotiated by congressional leaders, that lifted the four-decade ban on exporting crude oil was signed by the president.image-49563230-caterpillar-desktop-wallpaper

The resulting explosion in oil production has completely remodeled the U.S. economy and acted as something of a nationwide stimulus package.
 
By helping keep the price of oil and gas low, domestic energy production aided other industries as well, tamping down the cost of air travel, trucking and even agricultural goods, because of the reduced cost of the diesel fuel many farmers rely on.
 
Yet, despite all of the drilling and fracking excitement, there is a bigger dilemma afoot.
 
Determining the economic value of all this new oil and gas requires much more than trended history and simple math. Using oil production as a pillar of the economy sounds good when prices are low, but America must keep a close watch so that it doesn't hurt further down the road. apache+banner-1
 
The U.S. would be wise to consider energy security. Policy experts across the ideological spectrum have long insisted the best way to curb oil dependency is to develop diverse energy sources.
 
All in all, with the shadow cast over the oil and gas industry over the past few years, the south, especially, welcomes the Permian Boom with open arms.
 
George David Banks, a former Trump Administration energy adviser, says the Permian windfall has expanded U.S. soft power. “The whole transformation has put us back into a role to help define the policy of global energy production and not just as a consumer.”
 
America, especially Texas and Louisiana, await optimistically to see just how big of impact the Permian Basin can make on the economy for the remainder of 2019.
 
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