The State of Texas in the United States looks set to profit from the shale oil boom which has led to the drop of oil prices on the World Market, CNN can authoritatively report.

Texas which is home to not one but two massive oilfields, is also benefiting from a fall in the price of drilling costs.

The combined effect of bumper production and more cost effective drilling has sparked an explosion of production out of the Permian Basin of West Texas.

In fact, Texas is pumping so much oil that it will surpass OPEC members Iran and Iraq next year, HSBC predicted in a recent report.

If it were a country, Texas would be the world's No. 3 oil producer, behind only Russia and Saudi Arabia, the investment bank said.

"It's remarkable. The production coming from the Permian Basin in West Texas is nothing less than a blessing for the global economy," said Bob McNally, president of Rapidan Energy Group, a consulting firm.

The hyper growth out of Texas is needed because oil prices have risen sharply and major players like Saudi Arabia are quickly maxing out their production.

Much of the excitement in Texas centers around the Permian Basin. Some oil execs believe the amount of oil in the Permian rivals Saudi Arabia's Ghawar Field, the world's largest conventional oilfield.

Rapid technological advances have dramatically brought down the cost of pumping oil everywhere, especially out of the Permian. Wells there can be profitable below $40 a barrel.

"The industry cracked the code on fracking," said McNally.

The rise of Texas, which is also home to the Eagle Ford oilfield in the state's south, shows how the shale oil revolution has reshaped the global energy landscape. The United States is pumping more oil than ever before, making it less reliant on the turbulent Middle East for imports.

If the present trends are sustained, then the United States is poised to become the biggest producer of crude oil on the global market.






https://money.cnn.com/2018/07/17/investing/texas-oil-iran-iraq-permian-basin/index.html

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