Texas could surpass Iraq and Iran in oil production by next year, as suggested by a HSBC analysis.
The rapid explosion of oil output from the state could catapult Texas to the position of the 3rd highest oil producer (behind Russia and Saudi Arabia) if it were a country, according to HSBC.
The two major oilfields of the state, the Permian Basin and Eagle Ford are projected to pump a combined output of 5.6 million barrels per day in 2019 – compared to 2.5 million barrels per day in 2014, according to HSBC analysis. Iraq and Iran are estimated to produce 4.8 million and 3 million barrels per day respectively next year.
However, it remains to be seen if the Permian Basin can resolve its existing infrastructural/ logistical bottlenecks such as pipeline shortages, and how far it can channel its massive production potential into effective supply networks.