When Joe Biden took office, he vowed to crush the fossil fuel industry and have one of the most aggressive administrations of all time in terms of moving toward renewable energy.
As oil supplies were dwindling, Texas Governor Greg Abbott vowed to make Texas self-sufficient on this front, and it would appear that he has kept his promise.
Talking Points…
- Abbott vows to protect Texas oil and gas production
- Texas all-time highs in production
- Analysis
We have to go back to the very early days of the Biden administration after Joe Biden made it clear that he wanted to crush the fossil fuel industry. Biden signed a flurry of executive orders after being sworn in as the 46th President of the United States, many of which attacked domestic oil and natural gas production. When this happened, Texas Governor Greg Abbott vowed to protect the interests of Texas. Texas' economy relies heavily on oil production, so there is no way Abbott would allow Biden to destroy the state's economy. At the time, he stated:
"When it comes to threats to your jobs, you have a governor who has your back.
"Texas will protect the oil and gas industry from any type of hostile attack from Washington."
At the time that Abbott signed his executive order to block Biden's order, Texas was producing 41% of the nation's oil and 25% of its natural gas.
Now, we fast-forward to 2023, when oil and gas companies are terrified of reinvesting money into their businesses because they fear they are on the clock. Biden has more or less vowed to put them out of business in a few decades. Texas, however, keeps plugging along. In 2023, Texas reached production levels of 5.5 million barrels per day (mb/d), 3.3 mb/d of natural gas liquids, and 29 billion cubic feet per day (bcf/d) of natural gas production. Texas Oil & Gas Association President Todd Staples was thrilled by the news, stating:
"Texas' new production and export milestones continue to highlight the Lone Star State's role as a global energy leader, showcasing that energy leadership starts – and should stay – in Texas.
"In the face of global instability and ever-increasing demand for energy and the products that make modern life possible, Texas remains committed to delivering the affordable, reliable oil and natural gas that our state, nation, and world need."
Texas also reached record highs for exporting energy, sending more than $221 billion in oil, natural gas, and derived products last year. Most of the exports went to Europe and the Asian Pacific. Those levels have not backed off since last year, as recent reports show that 2024 production levels are on par with what the state produced in 2023.
TXOGA's Chief Economist, Dean Foreman, explained:
"Texas' strong performance across the energy value chain has meant that U.S. energy increasingly depends on our state.
"Ample production has replenished oil and natural gas inventories and kept downward pressure on consumer prices despite solid domestic consumption and record-highs for oil and natural gas exports. It's a remarkable productivity narrative."
Texas, Governor Abbott, and Attorney General Ken Paxton have been a thorn in Biden's side since he took office, and Abbott clearly has no intention of backing off now. This has made him and Paxton quite popular with state voters, and there is good reason for that: Texas regularly has among the lowest energy prices in the country, boasting the second lowest prices for diesel fuel ($3.640) and a top ten price for premium gasoline ($3.958).
Compare that to California, which has an average price of $5.416 for diesel, the second highest in the nation, only bested by Hawaii, and $5.623 for premium gasoline, the highest in the country. And that is clearly one of the reasons why Californians are moving to Texas in droves.
