EAST TEXAS (KLTV) - The United States recently surpassed an impressive benchmark that had to do with exporting a homegrown product. The benchmark was 1-million per day as in 1 million barrels per day and the product was none other than oil.
That's right, barely a year after the 40-year ban on exporting crude was lifted, we are exporting 1 million barrels of oil per day. The irony is that we continue to import 8 million barrels per day.
The spark for the renewed ramp up in exporting is due to the production cuts by OPEC with much of the crude being sent to Asia. Also, the difference in what we are exporting is in the quality or type of oil being exported which is a premium product while our importation of the 8 million barrels is somewhat different.
But this is still a significant event in the petroleum industry as the energy sector is regaining its footing in the new lesser demand world. It is truly a new normal.
Prices have slowly moved up for Texas oil but jobs and exploration investments will follow but at a more cautious pace. Essentially this is good news to be exporting again and the fact that it should grow in quantity is encouraging.
Texas and east Texas has a very resilient economy but we remain dependent on the energy business for above average growth and the financial benefits for our state that come with that and that makes for a Better East Texas.