American Oil and Gas Reporter - February 2022 - 49

them to account for about the same proportion
of domestic energy needs by 2050.
According to TIPRO member Enverus,
2022 will deliver an even stronger year of
growth relative to 2021, even as major
public operators continue exercise capital
discipline. Similar to 2021, private operators
are likely to continue increasing their activity
and investment, but the U.S.-focused
supermajors seem likely to play an even
more important part in the growth story
this year. TIPRO notes that Enverus forecasts
that these operators will focus on
growth out of their shorter-cycle North
American assets while they keep corporate-level
production flat, which they characterize
as their version of capital discipline,
as they avoid the riskier parts of their
portfolios to optimize cash flows and boost
shareholder returns.
According to TIPRO, Enverus remains
bullish for 2022, and expects U.S. supply
will grow by about 930,000 barrels a
day, exit-to-exit, from roughly 11.7 MMbbl/d
in December 2021, TIPRO notes.
Unlike 2021, the firm expects growth to
be more equally distributed between the
first and second halves and 360,000 bbl/d
should be added by mid-year at an average
of about 475 oil rigs. Nearly 95% of
forecasted 2022 growth comes from the
Permian; the Rockies will stay virtually
flat and Eagle Ford output will edge upward
at about 100,000 bbl/d. Meanwhile,
TIPRO observes, there are real risks to
supply outlooks, including well cost inflation
and supply chain snags.
" The state of Texas is an energy powerhouse,
and our producers are held to
strict environmental standards, " relates
TIPRO President Ed Longanecker. " It is
incumbent upon all of us to help maintain
a pro-energy environment by supporting
sensible, science-based policies at all
levels of government. When countries or
regions ignore the immense value of energy
security, they open the doors to
losing control of their economic wellbeing
and becoming more reliant on foreign
sources of energy to meet demand. "
Major Contributor
What does the oil and gas industry
mean for Texas? According to TIPRO's
report, the state:
· Led the nation in oil and gas jobs
with 309,396, and approximately 37%
of all U.S. oil and gas jobs nationwide
were located in Texas last year;
· Saw its oil and gas jobs paid an annual
average wage of $132,232, 107%
more than the state's average private
sector job;
· Had the highest oil and gas payroll
in the country in 2021 at $41 billion,
with California coming in at a distant
second ($10 billion), followed by
Louisiana ($6 billion);
· Had the highest number of oil and
gas businesses in the nation last year with
12,300, a quantity that totaled about three
times the number of oil and gas businesses
of second-ranked Oklahoma;
· Had the country's highest rig count
in 2021, with an average of 264 active
rigs, with active rigs climbing from 197
in January to 322 in December;
· Accounted for three of the country's
top five metropolitan areas ranked by oil
and gas employment;
· Saw its industry account for $200
billion of 2021 total direct GRP, which
totaled 12% of the Texas economy, a
number that more than doubles after the
typical GRP multiplier is applied; and
· Saw total 2007-2021 state taxes and
state royalty payments paid by its oil and
gas industry exceed $178 billion, including
$15.8 billion contributed last year.
The report, which includes a full list of
its data sources and methodological explanation,
can be viewed and downloaded at
https://bit.ly/TIPRO2022StateofEnergy. ❒
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American Oil and Gas Reporter - February 2022

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