Texas leads the nation in both crude oil reserves and productioni. The oil and gas industry paid $13.9 billion in state and local taxes and royalties in fiscal year 2020ii. 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 supported over 2.5 million Texas jobs, provided more than $250 billion in wages and contributed more than $410 billion to the state’s economy in 2019, according to a study conducted by PricewaterhouseCoopers that compiles the latest available government dataiii. 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. Since 2015, we’ve made over $100 million in social investments in Texas. 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. Our Citizens Advisory Committee (CAC), comprised of community leaders from DeWitt, Karnes, Live Oak and Bee counties, meets quarterly to discuss industry-related issues. Read more about the CAC.
We are a major sponsor of the Escondido Creek Parkway, including the Children’s Play Area and the Horned Toad Habitat. Over the years, we have given over $100,000 to the nature park, which is dedicated to a balanced relationship with the surrounding ecosystem. Future recreational amenities will include hiking and biking trails, playground, pavilion, amphitheater, picnic tables, benches, and a pond. The city of Kenedy, where the park is located, was proclaimed by the Texas Legislature to be the Horned Lizard Capital of Texas and Texas Christian University conducts annual horned toad studies in the area.
We have been an active member in the Permian Road Safety Coalition (PRSC) since 2015. The goal of the coalition is to lead a collaborative cross-industry effort with oil and gas operators, service and transportation companies, nongovernmental organizations and governments to improve road safety and reduce the number of traffic-related injuries and deaths in the Permian Basin. We are also a member of the Permian Strategic Partnership (PSP), a coalition of energy companies and regional leaders that is working to address current and future challenges associated with oil and gas development.
As part of our ongoing community giving in the Permian, our sponsorship of the Bad Boy Blast sporting clays tournament has raised almost $3.2 million since 2004 for local fire departments and crime stopper organizations in West Texas. In the Permian region of southeast New Mexico, our golf tournament and silent auction has raised $1.55 million since 2014 for the Make-a-Wish Foundation and other charities serving Lea County.
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 one of the company’s most prolific unconventional resource developments.
Eagle Ford is the first organic, home-grown, horizontal shale play in ConocoPhillips history. In 2009, the company began exploring the development potential of this play and by year-end 2020 held approximately 200,000 net leasehold and mineral acres, primarily in DeWitt, Karnes and Live Oak counties.
ConocoPhillips has drilled more than 1,500 wells in the field through the years, representing 30% of its potential drilling inventory, and built infrastructure capacity with central facilities and pipelines, with an emphasis on liquids value optimization through the operation of three condensate processing facilities.
Net production in the second quarter of 2021 averaged 227 MBOED.
Located in West Texas and southeastern New Mexico, the Permian Basin is a growth area for ConocoPhillips.
We have a long history in the Permian Basin. Some of our fields started producing in the early 1900s. Our work in the Permian Basin is a prime example of leveraging one of the company’s large legacy positions, using new technology and new ideas to test liquids-rich conventional and unconventional plays.
On Jan. 15, 2021, ConocoPhillips completed the acquisition of Concho Resources Inc., greatly expanding the company’s position in the Permian Basin. The addition of complementary acreage in the Delaware and Midland Basins creates a sizeable Permian presence.
The company now holds more than a million net acres in the Permian Basin, which includes approximately 440,000 unconventional net acres in the Delaware Basin and about 260,000 unconventional net acres in the Midland Basin. Net production for Permian in the second quarter of 2021 was 435 MBOED.