From February to March of 2019, Texas oil refineries produced between 13,6605 and 15,1054 monthly thousand barrels according to U.S. Energy Information Administration.
The price of crude oil was pretty predictable. In today’s world market, the price of oil is volatile. Read on to learn about the predictions for Texas and world oil production and prices.
Global oil is set by oil produced by two companies. The first, West Texas Intermediate (WTI) that sets the benchmark for U.S. oil prices. The second is Brent North Sea oil. It sets the price for global oil prices out of Northwest Europe.
Read on to learn 8 of the top predictions in 2019, given the unpredictability of today’s oil prices, these are only predictions.
The oil industry has historically been stable with predictable seasonal swings. Increases in prices in the spring, to gain the bump in profits from summer travelers. Prices fell in the fall and winter. The price of crude oil is no longer predictable due to significant changes in the industry.
Although there have been many changes in the oil industry these are the top 4.
West Texas is setting U.S. oil prices and influencing the global oil market but that influence is coming at a cost.
“I wanted you to see this mess. I wanted you to see the miles of traffic that back up. It’s miserable. But if you have a pulse you can make $100,000. So, naturally, we’re here,” Jesse tells me. Read more about the risks associated with the expanding oil fields, here.
All you have to do is look at the boom in the area from Pecos to Orla, Texas. The Permian Basin is ripe with oil but not necessarily the supporting infrastructure necessary to harvest it from the ground. The current push to extract and produce oil from this area is putting a heavy burden on the region.
Oil requires heavy equipment to move the raw materials (sand and water) to the oil field and move the crude oil to refineries. This damages road not intended to support the traffic.
Increases in the human population without increases in housing has resulted in the use of portable housing for workers. Workers typically work 21 days on and 7 days off and 100 hour weeks. The risk of injuries and death is high.
Finally, electricity demands. Pulling oil from the ground takes a lot of energy. This area of Texas puts a huge drain on the local power grid resulting in rolling blackouts in 100-degree heat.
The U.S. Oil Industry is not regulated by the government or by itself. As a result, the oil industry tends to be a version of the Wild, Wild West. High demand and a race to the market pushes dangerous working conditions with long hours with high risks. The rewards for the employees can be high (see above) but so is the risk of injury and death.
The lack of oversight allows some in the industry to act unethically and breach contracts with employees and sub-contractors. While the big oil companies may see a momentary increase in their bottom line there are some that are looking to stop those injustices.
For example, just the end of last month, $11.2 Million was awarded to the two men to created and patented The Wiper.
When an offshore pipe becomes stuck it shuts down the rig at a cost of $1.5 million a day. The Wiper reduces the time that pipe remains out of order from 10 days to 32 hours.
Warrior Energy Services Corp withheld payment to the men of their share of the profits of the Wiper promised under their employment agreement.
The reality in the oil business is that often the employees are hurt in the pursuit of profit. If you are hurt or your employer does not honor your employment contract. Contact an Oil Rig Injury Lawyer. They have the experience to make sure you are adequately compensated.
While no one can predict the future, Texas Oil will continue to dictate world crude oil prices globally. Increases in production from West Texas will continue to influence the oil industry well into the future.
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