Posted on October 15, 2019
By Mella McEwen, MRT.com/Midland Reporter-Telegram
During a visit to Midland last week, she listed supply disruptions such as the attacks on a Saudi Arabian processing facility last month that briefly knocked 6 million barrels of crude offline, the economic woes that have knocked much of Venezuela’s production offline and sanctions that have taken much of Iran’s production off the market.
But oil prices did not surge because the rise in domestic production has not only improved national security but changed the global energy conversation and given the country more control over its fate, she said.
“Think how many generations we sent into battle to protect our resources,” she said. “This has contributed to national security, and that’s huge.”
It shows that the oil and gas industry is important not just to the Permian Basin, not just to Texas, not just to the U.S. but around the world, she said.
“People don’t recognize that what we do is important. We know it’s important to the Texas economy, but what we do in Texas and in the U.S. affects the world.”
About 2.5 million barrels a day of U.S. crude are being shipped across the world, she said. And the country has reached record highs several times this year in the amount of refined products it exports, now about 5.1 million barrels a day, much of it coming from the Permian Basin, she said. At the same time, the country is importing about 700,000 fewer barrels a day from countries she said are less than friendly to the U.S.
It wasn’t that long ago, that Russia shut off natural gas supplies to Europe in order to obtain higher prices, Craddick said. Today, liquefied natural gas export facilities are springing up around the nation’s coast ready to ship U.S. natural gas to markets in Europe and Asia.
“We’re having conversations with India,” said Craddick. “We welcome them doing business with us.”
And the president of Poland visited Texas this summer to tour LNG facilities, she said.
Craddick said the surge in exports is also having an economic impact on the state’s ports such as Corpus Christi and Houston. Significant dollars are being invested in expanding export facilities — from storage for the additional crude coming from the Permian Basin and Eagle Ford via new pipelines, to plans to deepen the channels to accommodate the Very Large Crude Carriers that can carry 2 million barrels of crude. There have been permit applications to construct loading facilities, even mooring buoy systems, she said.