Drilling boosts West Texas economy
The oil and gas industry generated an economic impact of $14.5 billion across 10 West Texas counties in 2012, according to a new report by the University of Texas at San Antonio's Institute for Economic Development.
Researchers found that the oil and gas industry supported nearly 21,450 full-time jobs, paid $1 billion in wages and salaries, generated almost $472 million in state revenues, and added approximately $6.2 billion in gross regional product.
The report estimated growth in full-time jobs supported by the oil and gas industry in the 10-county region could increase 42% during 2012-22.
The region, which has a long history of oil and gas activity and has seen renewed vertical drilling in recent years as well as a growing number of wells that utilize a combination of horizontal drilling and hydraulic fracture stimulation.
An estimated 854 vertical wells and 57 horizontal wells were completed in the 10-county study area in 2012.
The study area encompassed Fisher, Glasscock, Howard, Irion, Martin, Mitchell, Nolan, Reagan, Scurry, and Sterling counties.
True Oil raises funds for Permian venture
Midland, Tex.-based True Oil Co. has secured $500 million in equity capital commitments that will be used to acquire and develop oil and gas assets in the Permian basin.
Funds for the new company were secured by an investor group, led by Los Angeles-based Ares Management, which includes True Oil management and other institutional investors.
The True Oil management team consists of industry veterans Ronnie Scott, Keith Maberry, Michael Rhoads, Will Kiker, and Jamie Rhoads. The group has experience identifying, purchasing, developing, operating, and selling oil and gas assets in the Permian basin, where they have drilled approximately 1,000 wells over the last decade.
Prior to forming True Oil, Scott was president and COO of several Midland-based oil and gas companies, including Henry Petroleum, Henry Resources, and HPC Energy.
Working as a team, the True Oil managers have been responsible for close to $3 billion of development, acquisition, and divestiture activity within the Permian basin in the last few years.
"The combination of our experienced oil and gas team along with dedicated capital and the Ares Private Equity team's success in building and growing companies is a powerful pairing," Scott said.
"We are excited about the opportunity to continue our development activity in the Permian basin as demand for domestically produced energy grows in the US."