CELEBRATING A CENTURY
Texas Oil & Gas Association president talks industry milestones, goals and why the future still is bright
Texas Oil & Gas Association looks forward to a bright future.
The Texas Oil & Gas Association, a statewide industry advocacy group headquartered in Austin, recently marked its 100th anniversary.
Today, the organization’s members represent more than 90 percent of the oil and natural gas production in Texas and more than 80 percent of the state’s refining capacity. Known as TXOGA, the organization’s past members include the late President George H.W. Bush.
TXOGA President Todd Staples recently spoke with Texas Inc. about the organization’s 100 years and the future of the industry.
Q: What have you done to celebrate your 100th anniversary?
A:
We have held events in San Antonio. We had one in Austin. We did one in Arlington earlier this year. We did one in the Rio Grande Valley. Everywhere we went, we talked about the 100year anniversary and the advancements that we’ve made as an industry and how we come together to develop real solutions to challenges.
Q: You mentioned challenges and solutions. Can you give some examples?
A:
If it’s water quality, we have standards that require multiple layers of cement and steel to protect that water quality. If it’s air issues we developed efforts
to reduce methane or reduce carbon dioxide. If it’s seismicity, we’ve developed recommended practices that industry partners should implement in their operations. We’re proud of the lifechanging impact this industry has had on our society.
Q: Looking back over the past 100 years, what has been the biggest impacts of the industry?
A:
The first thing that comes to my mind is how oil and gas development has led to the industrialization of America and how that changed lives forever. The manufacturing boom that resulted from affordable and reliable energy supply created a middle class that’s the envy of the world. It’s created millions of jobs and has had lifelong, lifechanging impacts of moving families from meaner means of existence to a robust part of our society. Families all across our nation have benefited and surely Texas has.
The technological advancement that is either been created or perfected in Texas has led to longer lives not only for our citizens, but for people around the globe. But this technological advancement is what has led us to better air quality both domestically and worldwide by the advancement of natural gas and exporting LNG across the globe. It’s displaced fuels with worse emissions.
Oil and gas will be an essential of our daily lives in the next 100 years. The industry is focused on climate progress and we recognize that we are in energy transition. Different forms of energy will play an increasingly larger role. But the reality is that heart valves, eyeglasses, and wind
turbines are all components made of oil and gas. And so, the industry is focused on a clear, strong energy future. Things that we’re doing include: improved fuel qualities, reducing methane emissions, and carbon capture and storage. All are part of our energy future and oil and gas will continue to play a big role.
Q: Crude oil prices were stuck in the $50-per-barrel range creating what we’ve been calling a “shale slump.” Will the industry be able to survive? A: Ups and downs or bumps in the road are not uncommon. We’ve had to weather these type of circumstances before. They’re not fun. They’re very challenging but the industry is resilient. These types of times should remind us all that we can’t take the good things for granted.
Fortunately, companies are investing in Texas because we have a strong business climate that welcomes investment and welcomes jobs. We have a regulatory system that’s based on science and that adopts best practices. It’s a mixture of these things that has made Texas the shining star that it is around the globe. Q: Will TXOGA and the industry be here in another 100
years?
A: Undoubtedly. The next 100 years are bright. The technological advancements that are being made are remarkable. Wind and solar are renewable, but wind turbines and solar panels are not. They’re made of components of oil and natural gas. As we think about our future, oil and gas is committed to a cleaner, stronger energy future. We know that the components that we use, 96 percent that we use in our homes and in our hospitals and in our schools, come from oil and gas. It’s simply irreplaceable. Q: What kind of activity was taking place in 1919 when TXOGA was founded? A:
What you saw in that era was the discovery of these resources and these assets in the Lone Star State. That industry recognized that coming together and working to solve challenges was beneficial to our state and our nation. That same spirit that drove the early pioneers to come together is alive and well today.
Q: What would you say are some of the biggest historic moments over the past 100 years?
A:There
were two big gamechanging dates in the last 100 years. The first was in 1975 when Congress implemented the domestic oil export ban. And the second was in 2015 when that ban was lifted.
After that export ban was lifted, the United States became the largest crude oil producer in the world in 2018 — passing Saudi Arabia and Russia because that artificial cap was lifted. As a result, we’ve seen commitments for manufacturing into the tunes of tens of billions along the Texas coast. We’ve seen port expansion that’s been unprecedented. We’ve seen hundreds of thousands of jobs associated with the midstream industry connecting growth of the Permian Basin and the Eagle Ford to the world. Q: Any surprises while doing the research for TXOGA’s
100th anniversary? A:
It’s well worth noting the roles that the industry has played in national security. At the World War II museum in New Orleans, they have an entire section on how oil and gas won the war effort. The city of Longview is celebrating its 150th anniversary right now. A part of that (history) is the pipeline that was built in support of World War II war efforts in East Texas all the way to the Northeast.
Because the Germans were sinking our oil tankers, our country really got into pipeline building industry. They were literally built to save America and to save the world from aggression.
Q: TXOGA is a big advocate of workplace safety. What improvements have been made in that area?
A:
My grandfather was killed on an oil rig in West Texas in the 1940s. The industry has changed fundamentally since then. Just look at the technology. Precision and efficiency has reduced the environmental footprint, drill-bit technology, perfected fracking methods, 3D seismic imaging, enhanced oil recovery, walking oil rigs that drill several wells on one pad side with minimal environmental impact. All of those are advancements that were probably not even envisioned a decade or two ago.
Q: What is the oil and gas industry doing to clean up its operations?
A:
The Environmental Partnership is a very good example of how companies are establishing best practices to reduce methane emissions and to use better equipment and better technology. That has grown to 60 companies now.
Our refining industry is working on improving (fuel formulas) every day. We know carbon capture, storage and sequestration technology is advancing rapidly. Q: Earthquakes remain a thorny issue for the industry. What is TXOGA doing to tackle that issue?
A:
We have a seismic working group made up of seismologists and geologists and reservoir engineers. We’re working with TexNet Seismic Monitoring Program. We’re partnering with the Center for Integrated Research, or CISR. We have been advocates for expanding the TexNet monitoring network. We have developed recommended practices that operators use in areas that have seismic activity.
Q: The Texas State Legislature does not meet again until 2021, but are there any issues already on your radar?
A: As you know, pipelines are important to the future of industry and the future of Texas. They are the absolute safest ways to move products and if you want gasoline at your convenience store, to fuel your car or your school buses. Or you want natural gas to make sure you have affordable power for your homes.
Our member companies work really hard to promote good and best standards for building and operating pipelines. Highways and electrical lines and pipelines, are all necessary components if we’re going to have a high quality of life. We strive hard to be good neighbors and want positive outcomes.