Texas remains one of the biggest oil and gas producing areas in the United States, with most of the major oil and gas companies operating. Texas provides almost 25% of all the USA’s oil supply and over 30% of its natural gas reserves.
Texas’s oil reserves can be found throughout the state, with the largest reserves concentrated in the Permian Basin of West Texas, which is believed to contain more than 20 of the nation’s top 100 oil fields, and the exciting new Eagle Ford Shale play, located in south Texas. The Eagle Ford Shale formation is found directly beneath the Austin Chalk Shale at depths between 4,000 and 10,000 feet.
According to the US Energy Information Administration, West Texas Intermediate (WTI), the State’s signature crude oil, is used as a benchmark of in oil pricing and is the underlying commodity of New York Mercantile Exchange's oil futures contracts.
Texas has seen a steady increase in its production of gas in the past decade, housing more than 100,000 gas producing wells in 2009, compared with 59,000 in 1999. A total of 7,573 billion cubic feet of natural gas was produced in 2009, with 77,546 billion cubic feet of proven reserves
Ref. EIA, Official Energy Statistics from the U.S. Govt.