Forty-one percent of executives said their operations have been impacted by theft in the oil field in the past year, the Federal Reserve Bank of Dallas said in a third quarter Dallas Fed Energy Survey page posted on its website recently.
The remaining 59 percent said they have not been impacted, the Dallas Fed stated on its site. Survey participants were asked, “in the past year, have your operations been impacted by theft in the oil field”, the Dallas Fed highlighted, noting that executives from 80 exploration and production firms answered this question during the survey collection period. This spanned from September 10 to September 18, the site pointed out.
Exploration and production executives who said their operations have been impacted by theft in the oil field in the past year were then asked, “what items have been stolen over the past year”, the site highlighted. The most selected response was ‘crude oil’, with 61 percent of respondents, according to the site, which revealed that ‘piping valves and wiring’ was the second most selected response, with 58 percent of respondents, and ‘equipment’ was the third most selected response, with 39 percent of respondents. Executives from 33 exploration and production firms answered this question during the survey collection period, the Dallas Fed revealed.
E&P executives who said their operations have been impacted by theft in the oil field in the past year were also asked, “how would you rate the impact of this theft on your firm’s operations”, the site revealed. Well above 70 percent of respondents said “low”, with around 15 percent responding “medium”, and under 10 percent responding “high”, the site pointed out. No respondents checked the “no impact” response, according to the site. Executives from 33 exploration and production firms also answered this question during the survey collection period, the Dallas Fed revealed.
A statement posted on the Office of the Texas Governor’s website back in June announced that Texas Governor Greg Abbott signed oilfield theft protection and pro-growth legislation into law.
“Governor Greg Abbott … signed into law key legislation to protect Texas’ oil and gas industry and promote economic growth across West Texas, including Senate Bill 494, Senate Bill 529, Senate Bill 1806, House Bill 48, and the Beacon Budget Appropriation, during a bill signing ceremony at the Permian Basin Petroleum Museum,” the statement noted.
Senate Bill 494 “establishes a petroleum product theft task force”, Senate Bill 529 “alters the tax code for the City of Midland to divert certain collected tax revenue for economic development projects”, Senate Bill 1806 “provides the Texas Department of Public Safety with additional tools to combat oil and gas theft”, and House Bill 48 “creates an organized oilfield theft prevention unit within DPS to protect oilfield assets, support the energy industry, safeguard economic stability, and enhance public safety”, the statement highlighted.
Beacon Budget Appropriation “was appropriated by the Texas Legislature to the Texas Facilities Commission to support Beacon Healthcare in extending healthcare, research, residential, and retails spaces in the region”, the statement pointed out.
“Today is a defining moment for the Permian Basin, the future of this region, and the future of Texas,” Abbott said in the statement.
“We are bringing the full weight of the law to crack down on oil theft in the Permian Basin to protect the critical role energy development plays in fueling our economy,” he added.
“I’m also signing an item to fund an historic $123 million investment in The Beacon, a pivotal economic development project for Midland-Odessa,” he continued.
The Dallas Fed conducts the Dallas Fed Energy Survey quarterly to obtain a timely assessment of energy activity among oil and gas firms located or headquartered in the Eleventh District, the Dallas Fed stated in the third quarter Dallas Fed Energy Survey page on its site, adding that the Eleventh District encompasses Texas, northern Louisiana, and southern New Mexico.
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