Case 6:12-cv-00799-JRG Document 26-9 Filed 02/11/13 Page 1 of 4 PageID #: 1208
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`Bubbling crude: America's top 6
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`U.S. produces about 5.48 million barrels per day, much less than it consumes
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`The sun sets behind an drilling rig in Prudhoe Bay, Alaska. The state is the second-largest oil producer of crude oil, with a daily production of about 670,000 barrels. Oil production has been in a steep
`decline since the late 1980s.
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`LUCAS
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`By
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`Eric Fox
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`updated 6/8/2011 8:23:29 AM ET
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`Crude oil production from the United States averaged approximately 5.48 million barrels per day
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`in January 2011, much less than the country consumes. The bulk of this domestic production
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`comes from just a handful of states where the oil and gas industry has been operating for
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`generations. Here are the six states that produce the greatest amount of crude oil.
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`1. Texas
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`It's no surprise that Texas is the largest domestic producer of oil as this state has had a culture
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`associated with the oil business for more than century. Many historians trace the beginning of
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`the modern oil era to the famous Spindletop well drilled near Beaumont, Texas in 1901. The well
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`blew out and reportedly produced 100,000 barrels of oil per day until it was brought under
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`control nine days later.
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`In January 2011, crude oil production in Texas averaged 962,338 barrels a day. Like other areas
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`of the United States, this production peaked a generation ago and then entered a long-term
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`decline. Since 2004, however, production leveled out and has been stable since that time. The oil
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`industry is currently focused on increasing Texas oil development from the Eagle Ford Shale, the
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`northern part of the Barnett Shale, and the Permian Basin.
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`2. Alaska
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`Alaska is the second-largest oil producer of crude oil with average daily production of 670,553
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`barrels in February 2011 (includes natural gas liquids). The state was a relatively minor source of
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`domestic production of crude oil until the discovery of oil in the North Slope in the 1970s.
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`Production from the Prudhoe Bay field and other fields began in 1977 and at one point
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`comprised 25% of all U.S. oil production.
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`Unfortunately for the United States, Alaskan oil production has been in a steep decline since the
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`late 1980s when production peaked at over two million barrels per day. This will probably
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`continue declining as the industry is focused on other areas that are easier to develop.
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`3. California
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`Some might find it odd that California is the third largest producer of crude oil in the United
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`States, as this state has a reputation as ground zero for the environmental movement.
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`http://www.nbcnews.com/id/43085246/ns/business-oil_and_energy/t/bubbling-crude-americ...
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`2/7/2013
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`The top six oil-producing states - Business - Oil & energy | NBC News
`Page 2 of 3
`Case 6:12-cv-00799-JRG Document 26-9 Filed 02/11/13 Page 3 of 4 PageID #: 1210
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`Things were much different in the middle of the 19th century, as the oil industry in California
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`began with operators building tunnels or pits to get at the oil, much of which seeped to the
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`surface. The first successful oil wells were drilled in the 1860s and the industry hasn't stopped
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`since.
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`In December 2010, California reported average daily production of 536,800 barrels of oil from
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`both onshore and offshore areas. This doesn't include offshore production from the Outer
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`Continental Shelf that is regulated by the federal government, which typically averages about
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`35,000 barrels per day.
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`The state's largest oil field is the Midway Sunset field which averaged production of 85,100
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`barrels per day in December 2010.
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`4. North Dakota
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`North Dakota has the honor of being the fastest-growing state oil producer over the last few
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`years, as it has seen oil production increase from less than 100,000 barrels per day in 2005 to
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`the 348,367 barrels per day reported in February 2011.
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`This amazing growth has been powered by the development of the Bakken formation in the
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`Williston Basin and other areas of the state. There are currently 172 rigs drilling in North Dakota
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`with 95% of these rigs targeting the Bakken and Three Forks formation.
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`Although there is considerable debate on where oil production from the Bakken will peak, one
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`might want to look at the capital plans of the pipeline companies. These operators are planning
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`on increasing takeaway capacity in the area to one million barrels per day by 2015.
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`5. New Mexico
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`New Mexico is the fifth-largest domestic oil producer with average daily production of 177,815
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`barrels per day in 2010. The state is a relative newcomer to the business compared to other top
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`producers, with the first successful commercial oil well drilled in 1924.
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`6. Oklahoma
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`Oklahoma comes in sixth in oil production, with average daily production of 147,341 barrels per
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`day in 2010 (through November). The oil industry in Oklahoma also has a long and storied
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`history with the Nellie Johnstone No. 1 well near Bartlesville kicking off the beginning of a boom
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`in 1897. Oklahoma was also where Jean Paul Getty got his start in the oil business in the early
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`1900s. Getty later went on to run the Getty Oil Company and became one of the first billionaires
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`in the United States.
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`The bottom line
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`A handful of states are responsible for much of the domestic oil production in the United States,
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`and these states have a long association with the oil industry, dating back more than a century.
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`For as long as the world continues to heavily rely on oil (and for as long as oil lies beneath U.S.
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`soil) these six states can count on big profits from the oil fields for years to come.
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`More from Investopedia:
`
`• 6 surprising ways oil prices affect you
`
`• Media mashup: Who owns whom?
`
`• Learn all you need to know about inflation
`
`• The factors that will cause $6-per-gallon gas
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`• 6 industries hoping that oil prices go higher
`
`© Investopedia ULC
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`Case 6:12-cv-00799-JRG Document 26-9 Filed 02/11/13 Page 4 of 4 PageID #: 1211
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`http://www.nbcnews.com/id/43085246/ns/business-oil_and_energy/t/bubbling-crude-americ...
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`2/7/2013