TX soaring way above CA in energy production

May 6, 2013

By John Seiler

The California fantasy is that energy magically will flow in abundance from windmills and solar panels, even when there’s no wind and at night.

The reality is that it’s old-fashioned “fossil” fuels that will continue to generate almost all our power for the next century. New discoveries in America and around the world are bringing online an abundance of new oil and natural gas supplies.

When they can, other American states are taking advantage of that, enjoying massive growth in jobs and tax receipts. North Dakota has been in the news because of its lucrative Bakken Formation.

But the Wall Street Journal notes today that Texas quietly has doubled energy production since 2005, maintaining its position as the top state oil producer. Meanwhile, California has stagnated, dropping to third place behind Texas, North Dakota and Alaska. Here’s a great chart:

Texas and California oil production

Wall Street writes:

More than 400,000 Texans are employed by the oil and gas industry (almost 10 times more than in California) and Mr. Smitherman says the average salary is $100,000 a year. The industry generates about $80 billion a year in economic activity, which exceeds the annual output of all goods and services in 13 individual states.”

And remember that living is a lot cheaper in Texas, and there’s no state income tax. Does California have better weather? Only along the coastal areas. But the new job growth, assuming our state ever gets its act together and starts drilling, would be in the inland areas that have crummy weather — and currently unemployment rates in some areas above 30 percent.

“More than 400,000 Texans are employed by the oil and gas industry (almost 10 times more than in California) and Mr. Smitherman says the average salary is $100,000 a year. The industry generates about $80 billion a year in economic activity, which exceeds the annual output of all goods and services in 13 individual states….

“A large part of the explanation for the Texas boom and the California bust is the political culture. Despite their cars, California voters have elected politicians who consider fossil fuels to be “dirty energy.'”

Right now, California state revenues unexpectedly are surging. But that won’t last once the Legislature gets to splurging.

Eventually, the California Teachers Association and other public-worker unions will give the marching orders: “We don’t care about the environment. We need the tax money for our pensions. Drill! Drill! Drill!”



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