Texas leads the nation in both crude oil reserves and production.i This production stimulates economic activity and provides jobs across the state and throughout the country. From 2007 to 2015, natural gas and oil companies paid $98.9 billion in state and local taxes and state royalties. This revenue fueled the state economy, funding schools, roads, and other essential services such as hospitals.
In Texas, we operate in the Eagle Ford, Permian, and Anadarko regions. Thanks in part to Texas’ ongoing production, the U.S. is now the world’s largest producer of oil and natural gas. This steady supply helps keep gasoline, diesel, natural gas and electricity prices low, stimulates economic activity and contributes to the U.S. manufacturing renaissance.
The Texas natural gas and oil industry added $15.7 million to the state coffers, funding schools, roads, and essential services in 2014. And the industry directly employs 410,000 Texans, with another 1.4 million indirect jobs in related support industries and sectors in the Lone Star State.ii So it’s safe to say that the natural gas and oil industry has a significant impact in Texas.
Everywhere we operate, helping improve the quality of life in the communities where we live and work is a fundamental value. We do that by funding worthy causes, by lending a helping hand where it’s needed most, and by working diligently to build inclusive, authentic and respectful relationships with our stakeholders.
We contribute to the well-being of these communities through charitable giving, volunteerism and civic leadership. Where local communities have been hard hit by falling oil and gas prices, active engagement continues to be a priority. In each operating area, we engage our stakeholders to understand their values and interests, learn their expectations, and then incorporate what we learn into our business plans and actions. We seek early and frequent engagement with our stakeholders to build trust, garner respect, and develop mutually beneficial relationships.
In the Eagle Ford, ConocoPhillips hosts a variety of stakeholder forums to share information about our current operations and industry topics and more importantly, to receive community feedback. In response to concerns voiced through these forums, ConocoPhillips developed the Drive Safe: STOP for School Buses program in the Eagle Ford area to promote safe driving around school buses. From conducting safety presentations internally to relaying these reminders to fellow operators, ConocoPhillips is raising awareness in the Eagle Ford. As our first SPIRIT Value, safety is the cornerstone of ConocoPhillips operations and this campaign is one of several road safety initiatives from around the Lower 48.
In the Permian Basin, we support local public safety agencies through the annual Bad Boy Blast sporting clays tournament. The proceeds benefit the volunteer fire departments of Andrews, Ector, Howard, and Midland counties, as well as the Odessa, Texas Crime Stoppers. Over the past 13 years, this event organized by ConocoPhillips employees has raised more than $2.2 million to equip and train first responders.
We are proud to be an active and valued member of the communities in which we operate, building strong relationships with people and communities.
Located in south Texas along a 200-mile corridor, the Eagle Ford shale produces oil, natural gas and natural gas liquids (NGLs). The liquids-rich Eagle Ford tight oil trend, located in the Western Gulf Basin of South Texas, represents the company’s most prolific unconventional development. By the year 2023, the Eagle Ford Shale could produce close to $137 billion in output and up to $41 billion in gross regional products, according to projections in an Economic Impact Study conducted by the University of Texas at San Antonio (UTSA).
Eagle Ford is the first organic, home-grown, horizontal shale play in ConocoPhillips history. We hold approximately 214,000 net acres in the liquids-rich part of the play, primarily in DeWitt, Karnes and Live Oak counties. Our wells are typically drilled to depths ranging from 10,000 to 13,000 feet total vertical depth, with laterals commonly extending more than 5,000 feet.
In 2018, our net production from conventional and unconventional wells in the Eagle Ford averaged 186 MBOED. Our Global Onshore Well Management Principles apply throughout the lifecycle of a well, from discussions with local communities before drilling site selection to the permanent closure of a well and final restoration of the land.
Located in West Texas and southeastern New Mexico, the Permian Basin is a growth area for ConocoPhillips. Our large legacy leasehold position consists of approximately 1.0 million net acres, which contain more than 1 billion barrels of oil equivalent.
We have a long history in the Permian Basin. Some of our fields started producing in the early 1900s. While some of our growth is focused on developing our unconventional fields, we are utilizing new technologies to improve recovery and value from our conventional fields such as the Gandu, which began producing in the 1950s.
Net production for Permian in 2018 was 66 MBOED.
The company holds approximately 800,000 net acres in the Permian Basin, which includes 87,000 net acres in the Delaware Basin and 58,000 unconventional net acres in the Midland Basin. With the number of stacked plays in this basin, we expect drilling and production to continue for many years.
i U.S. Energy Information Administration, Crude Oil Proved Reserves, Reserve Changes, and Production, 2009-14.
ii 2015 data, https://www.depts.ttu.edu/politicalscience/mpa/cps/documents/finalreport1-23.pdf