As oil producers clear their long term investments in oil drilling, the price of oil continues to slide, hovering around $50 per barrel. With many experts forecasting this level for...
Texas crude oil production has a remarkable history and variance. In 1985, the production level of 2,500,000 barrels per day even created a television show. This was the high watermark for the region. As the production slowed, no one predicted at that time the bottom would end with 900,000 barrels per day in 2001, a 64% reduction. Since this time, the oil output has increased almost vertically to a new production level of 3,200,000 barrels per day, or a 256% increase. This represents 40 consecutive months of increases. Texas now represents 37% of all US oil production. With this continued strength, it would not surprise many industry experts that Texas will surpass Iraq, Iran, and Canada to become the world’s fifth biggest oil producer. To understand the price reduction in oil, we have to consider the rise of Texas oil production.
Gary Kapanowski – Lean Six Sigma Master Black Belt – Excelsior
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