A fracking drill rig on the prairie
In November 2018, the US hit a major milestone that put the global oil industry’s spotlight squarely on it.
Historically, America has been a heavy importer of crude oil because of a ban on crude exports that has lasted for 40 years. In 2015, however, this stricture was rescinded by President Barack Obama.
Since then, the country has exported more oil than it imports for the first time in half a century. Today, the newly oil-flush nation is expected to produce about 12 million barrels per day (bpd), according to data from the Energy Information Agency (EIA).
Recent forays into shale frackinghave contributed greatly to this surge in national oil exports. Shale rock layers sometimes contain oil reserves between them, and fracturing these layers allows one to extract the so-called liquid gold.
And one of the top shale oil fields thats helping the US become a major crude oil player is located right here in Texas.
An Epic Turnaround
A report by the Texas Independent Producers and Royalty Owners Association (TIPRO) claims that 2018 represented an all-time high for oil production in the Lone Star State.
A large part of this is the Permian Basin, which straddles Texas and New Mexico. Estimates place crude oil production in the basin at about 4.5 to 5 million barrels per day.
Ironically, the Permian Basin was once considered a spent field. In 2008, production declined so steeply that oil companies began leaving in droves. But the advent of fracking has turned the basin from has-been to the second-most productive oil field in the world.
About the Permian Basin
The Permian Basin has quite a few things going for it. To begin with, its massive—about the same size as South Dakota.
It also has exceedingly fat layers measuring about 1,000 feet in some areas, which hold massive reserves of oil. Unlike other shale oil fields, the layers contain mostly crude oil rather than the less valuable natural gas. Its layers are also relatively even, which makes for easier drilling.
These factors have caused observers to view the Permian Basin as both an emerging star in the oil industry and a poster child for successful fracking operations.
As one might expect, the discovery of rich oil reserves is bound to increase the value of land for sale in Weatherford, TX and the surrounding communities. After all, oil is a finite resource and very few places on the planet have a stockpile of it.
The Permian Basin has also piqued the interest of oil industry players, and you can expect more of the hem to establish outposts in Texas soon.
The more companies that flock to Texas, the more people will move here for work. The influx of people is expected to stimulate the local real estate market, with developers creating new residential projects targeted at this growing segment.
And as real estate development picks up in Texas, overall land values and property prices will also appreciate.
Hence, real estate professionals predict a bullish future for the local market, helped in no small measure by the Permian Basins oil production.
Of course, now is the best time to invest in homes for sale in Weatherford, TX as we begin to see the trickle-down effect of the oil industry. If you wish to get ahead of the curve, call HBS Real Estate 817.550.6666 to learn more about available real estate in Texas.