Oil Production in Texas

oil production in texas

The United States produces more barrels of oil than any other country in the world. Within the US border, no state produces more oil than Texas, and this is by a landslide. In fact, according to the U.S. Energy Information Administration, oil production in Texas produces over 3 times as many barrels as North Dakota, the second leading state.

Where is Oil Found in Texas?

So where is all of this oil found? In this article, we are going to explore some of the densest spots for oil production in Texas.

Major Oil Producing Regions

Within the Lone Star State, there are seven large basins which produce the majority of oil production in Texas. They are as follows:

  • The Permian Basin
  • The Gulf Coast Basin
  • The Anadarko Basin
  • The Fort Worth Basin
  • The Maverick Basin
  • The Val Verde Basin
  • The East Texas Basin

Among them, the Permian Basin is the most widely known and highest-producing region. In fact, the massive 250 by 300 mile landmass extends into Southern New Mexico and is divided into several different regions in itself. Within the Permian Basin, oil is found in:

  • The Delaware Basin
  • The Midland Basin
  • The Central Basin Platform
  • The Eastern and Northwest Shelves
  • The San Simon Channel
  • The Sheffield Channel
  • The Hovey Channel
  • The Horseshoe Atoll

After the Permian Basin, perhaps the second most famous region for oil production in Texas is called the Eagle Ford Group. The Eagle Ford Group, also known as the Eagle Ford Shale is found in southern Texas and extends between the Maverik and East Coast basins. The area ceased producing oil after a strike, caused by rapidly declining oil prices in 2015.

The Largest Oil Towns in Texas

Of course, in order for oil to be found, individuals and companies need to raise capital to explore and drill. After production has begun, oil royalties are only earned by mineral rights holders if the barrels are sold. In terms of related jobs and local economies, the largest “oil towns” in Texas are:

  • Houston
  • Dallas
  • Austin
  • San Antonio
  • Midland
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