Texas Oil & Gas Association

It's not too late to register for the Sixth Annual Energy Market Drivers and Current Legal Issues Seminar! We're offering three sessions taking place from 8:30 am - 12:00 pm on Tue., April 8 in Tulsa, Thur., April 10 in OKC, and Thur., April 17 in Houston. Jeff Starling, Oklahoma's Secretary for Energy and Environment, will provide opening remarks in Oklahoma. Dr. Dean Foreman, Ph.D., Chief Economist of the Texas Oil & Gas Association, and Irene Kosturakis, Area VP-Chief Intellectual Property Counsel at BMC Software, Inc. and Past Chair of the TEXAS BUSINESS LAW FOUNDATION, will be guest speakers in Houston. Panel topics will include: ? Legal and Regulatory Developments Shaping the Energy Sector ? Contracts in the Patch (Oklahoma sessions only) / Texas Courts: Progress, Impact, and the Road Ahead (Texas only) ? Environmental Shifts in Energy: 2024 Review and What Lies Ahead for 2025 ? Navigating Midstream Energy Projects This complimentary program is pending 3 hours of AAPL, CLE,?CDOA, CPLTA, and CPE credit. For more info and to register, visit: https://lnkd.in/g56mpxA3

?? TXOGA Chartbook Update - Week of March 17, 2025 ??U.S. economic data softened as consumer price inflation eased to 2.8% year-over-year (y/y) in February, following four consecutive months of increases, per the Bureau of Labor Statistics—reinforcing concerns about broader economic slowing amid persistent consumer pressures and weak sentiment. In response, the corporate risk premium for low-credit-quality bonds widened, with CCC-rated yields rising 0.6 percentage points week-over-week (w/w) to 12.4% and 1.2 percentage points over the past two weeks. By comparison, 30-day Federal Funds futures edged up to 4.3%, while the risk premium for lower-credit-quality bonds climbed to 8.2%—its highest since September 2024. ??Oil market fundamentals and prices weakened. As highlighted in the Chart of the Week, U.S. petroleum demand has risen by 3.2% y/y in early 2025, driven primarily by distillates and propane as seasonal heating demand returned to historical norms. The latest U.S. weekly market data show strong production (13.6 million barrels per day, highest since December 20) and lower petroleum net exports having been partially offset by increased domestic demand. On balance, this resulted in crude oil inventories rising by 1.5 million barrels, according to the Energy Information Administration’s (EIA) data for the week ended March 7. Consequently, West Texas Intermediate (WTI) crude oil prices slipped by 0.7% w/w to under $67 per barrel on March 14. ??U.S. natural gas fundamentals remained steady. Dry natural gas production slipped by 0.7 billion cubic feet per day (bcf/d) w/w to 105.5 bcf/d, versus total demand (consumption and exports) of 110.7 bcf/d as of March 12 per EIA. Consequently, working gas storage levels fell by 3.5% w/w and prices at Henry Hub for April delivery remained over $4.00 per million Btu. For detailed insights and analysis, please visit the TXOGA Chartbook at: https://lnkd.in/g8tSBmUm #TexasOilAndGas #EconomicOutlook #OilMarket #NaturalGas #EnergyTrends #MarketInsights #Business #Economics #Productivity #QuantitativeAnalysis #Strategy #Innovation #Inflation #Prices #Markets #Data

Research by John Diamond of Rice University's Baker Institute shows that a strong R&D tax credit program could create 113,000+ jobs. The Texas Legislature should support SB 2206 by Senator Paul Bettencourt and HB 4393 by Representative Charlie Geren to compete for R&D investment and jobs. For more information visit texansforinnovation.com #txlege

New data from the Texas Workforce Commission indicate that upstream oil and natural gas employment grew by 2,500 in January 2025 compared to December 2024. This is growth on top of TWC’s just-released upward revisions for 2024. For example, December 2024 employment is now estimated at 200,900 whereas the original estimate was 195,500. TXOGA President Todd Staples issued the following statement: “As geopolitical circumstances continue to evolve and domestic policy is being examined, the Texas oil and natural gas industry started the year off with positive job growth, which is a reminder of the important role played by this critical industry in providing energy security across the globe.” Read more: https://lnkd.in/gxNKCSCc

A new study by John Diamond of Rice University's Baker Institute finds Texas needs an enhanced R&D tax structure to compete. Competitive R&D tax credits in SB 2206 by Senator Paul Bettencourt and HB 4393 by Representative Charlie Geren can cement Texas' position as a global tech leader. For more information and to download the report, visit https://lnkd.in/gPFUMNJX #txlege

This afternoon in the Senate Committee for Natural Resources, Chairman Brian Birdwell introduced SB 1146, which would allow operators in good standing who are the owners of an interest in either a lease or mineral estate where an orphaned well is located to contract with a Railroad Commission of Texas approved well plugger to plug the orphan well or donate funding to the agency to plug other orphaned wells. This legislation would also allow a private person to voluntarily provide funding to the agency to plug a well not on a lease they operate. TXOGA President Todd Staples testified in support of this legislation, saying, “We believe that this is common sense bill that is a win for the landowners. It's a win for the state, and it facilitates companies in advancing the development of oil and gas in this state.” Thank you Chairman Birdwell for introducing this critical legislation to help plug orphaned wells and protect our state’s natural resources. Watch the full testimony here (starts at 5:52): https://lnkd.in/gdTuVAmT #txlege #txenergy

TXOGA President Todd Staples testified in the Senate Committee for Natural Resources this morning, where he spoke in support of Senate Bill 1150, which will reduce the potential for wells to become orphaned by providing a time frame for inactive wells still held by operators to be plugged once their economic potential for the mineral owner and operator is exhausted. "[This bill] was designed to address all [these] different circumstances. It allows for the Railroad Commission to provide exceptions if you're in the business of putting wells back into production. It allows for the consideration of financial hardship faced during pandemic. …We have over 5,200 active operators in Texas, and so you need to have legislation that's flexible enough to be able to address these [issues]. [We] believe that the changes in the committee substitute would certainly do that." Texas oil and natural gas operators directly plugged 88.4% of all wells plugged in fiscal year 2024 and approximately $55 million of industry fees are appropriated annually to state-managed programs responsible for plugging orphaned wells, in addition to the $27.3 billion paid in state and local taxes and state royalties just last year. We thank Senator Mayes Middleton for his leadership in introducing this critical legislation and Chairman Brian Birdwell for hearing this legislation in his committee. Watch the full testimony here (starts at 34:13): https://lnkd.in/gF-4r_5S #txlege #txenergy

?? TXOGA’s Quarterly Energy Economics Outlook Q1 2025: Energy Resilience in a Shifting Global Economy The first quarter of 2025 has underscored the strength and adaptability of the Texas oil & natural gas industry, even as global economic risks intensify. ?? Strong U.S. economy, but watch trade & debt risks ·??????Global GDP growth revised down to 2.6% for 2025-2026. ·??????The strongest U.S. dollar on record is reshaping trade and energy markets. ·??????Tariffs and retaliatory measures could trim 1.5 percentage points from global GDP and more than 2 percentage points from U.S. GDP (BIS). ?? Energy Markets: Growth meets uncertainty ·??????Global oil demand is set to reach a record 104.1 million barrels per day (mb/d) in 2025 and 105.2 mb/d in 2026. ·??????The U.S. leads supply growth, adding 0.5 mb/d this year, while non-OPEC producers contribute 1.0+ mb/d. ·??????Natural gas demand has continued to grow, with U.S. LNG exports critical to meeting global needs. ?? Texas: The Powerhouse ·??????Despite market shifts, rig productivity remains high, led by the Permian and Eagle Ford. ·??????Texas’ energy exports continue driving economic strength, reinforcing the state’s global leadership. Will tariff-driven inflation and trade disruptions challenge this momentum, or will energy innovation and market resilience prove stronger? Read the full Q1 TXOGA Economic Perspective for a deeper dive! https://lnkd.in/gPf4kdWD #EnergyEconomics #OilAndGas #EconomicOutlook #Productivity

Check out the latest Energy Economics Perspective for Q1 2025 by TXOGA Chief Economist Dean Foreman, Ph.D. which delves into the latest insights from weekly, monthly, and quarterly monitoring and analyses of economic and energy markets. Read more: https://lnkd.in/gg6yan78

?? Texas Energy Powers into 2025: Key Insights from TXOGA’s Monthly Energy Economics Review (MEER) – March 2025 TXOGA’s Monthly Energy Economics Review (MEER) delivers timely insights and data-driven analysis on Texas’ oil and natural gas industry, bridging gaps in public data to provide a comprehensive view of production, trade, and consumption. ?? Texas continues to lead U.S. energy production. In December 2024, crude oil output held steady at 5.7 million barrels per day (mb/d), while natural gas withdrawals hit a record 36.6 billion cubic feet per day (bcf/d)—underscoring the state’s role as the backbone of American energy supply. ?? Strong momentum in early 2025. TXOGA estimates that February’s production remained near record levels, reinforcing Texas’ leadership in global energy markets. In December, natural gas demand within the state reached 14.0 bcf/d, with most used for industrial processes and power generation. Meanwhile, exports remained vital: 8.5 bcf/d shipped as LNG and 4.6 bcf/d delivered via pipelines to Mexico. ?? ERCOT’s electricity mix highlights reliability. In February, dispatchable and thermal generation provided as much as 92.2% of peak supply, averaging 62.2% of total generation throughout the month. ?? Texas remains a global energy powerhouse. In 2024, the state exported $230.3 billion in energy products, underscoring its critical role in U.S. economic strength and global supply security. For deeper insights, explore the full report: https://lnkd.in/g8tSBmUm #TexasOilAndGas #EnergyEconomics #TexasEnergy #NaturalGas #CrudeOil #EnergyLeadership #Markets #Innovation #Data #Strategy