“The growth we’ve seen in shale production is one of the greatest achievements in the history of American oil and natural gas, and certainly one of the greatest economic success stories this nation has seen in decades,” said Lee M. Tillman, Marathon Oil Corp.’s president and CEO.
Tillman recently spoke at the 2014 DUG Eagle Ford Conference about how the shale revolution has kick-started America’s job growth and redefined its economy.
“Last year, the U.S. oil and natural gas industry supported more than 9.8 million jobs,” he noted. “We delivered more than $86 million in revenue every day to the federal government. And we represented 8 percent of the total U.S. economy.”
Tillman addressed how much the landscape has changed since 2008 when oil prices rose to a staggering level and people were just beginning to discover the potential of the Eagle Ford Shale.
“It’s hard to believe it was only six years ago the first well was drilled in the Eagle Ford Shale,” he stated. “That was in 2008 when oil prices spiked to over $147 a barrel amid lower domestic production and unrest in places like Venezuela and Nigeria. How times have changed. The conversation has turned to a North American energy supply revolution; a revolution that is led by the world-class Eagle Ford play.”
And the revolution extends to the U.S. job force, according to Tillman. He said since the formation of regions like the Eagle Ford, “job creation and energy production in America go hand in hand.” He singled out Texas as a national leader in job creation, with the oil and gas industry responsible for establishing more than 400,000 jobs in the state. Texas stands apt to experience a fourth consecutive year of employment growth in 2014.
Not only is Texas experiencing an impressive job growth, but it is also producing more than 3 million bpd of crude oil. This is the first time since the late 1970s that Texas has shown these types of production numbers, according to Tillman. Moreover, he stated the Lone Star State has doubled its production in the past three years.
“This growth was driven by the Eagle Ford combined with the thriving Permian Basin — two of the highest quality shale plays right here in Texas,” said Tillman. “North Dakota (also) topped 1 million barrels of crude per day for the first time in history.”
While Tillman noted both states’ contribution to the shale revolution, he also pointed out it would not be possible without “technological innovation.” He said this new technology has allowed for oil and gas resources to be unlocked across the country.
“The resource plays that are now accessible — like the Eagle Ford, Bakken, Oklahoma resource basins and others — represent a step-change for our industry and for our economy,” Tillman elaborated. “But our ability to continue to grow, our ability to continue to shape America’s and the world’s energy future, depends on two things: capitalizing on opportunities and navigating the challenges.”
Tillman believes the U.S. can capitalize on its opportunities by accessing its resources. Through this, America’s energy security and economic growth could have a significant effect on markets across the world.
“From Europe to Asia we’re seeing growing awareness of the need for supply diversity,” he said. “We can and should find a way to play a greater role contributing to that diversity by finding new ways to bring American crude oil to global markets. We’re a nation with a history built on free trade, and I’m of the very strong belief America is well positioned to compete in the global oil and natural gas market.”
Tillman feels one of the challenges America faces is the export ban from 1970, which enforces crude oil restrictions throughout the country.
“Lifting today’s crude oil export restrictions would help strengthen the U.S. economy, foster job creation and promote the efficient development of the domestic energy sector,” he commented.
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