Recently, the Texas Oil & Gas Association (TXOGA) and the South Texas Energy & Economic Roundtable (STEER) jointly hosted “South Texas Energy Impact: Laredo” at Texas A&M International University (TAMIU) to serve as a platform for academics, industry experts, and community leaders to analyze the opportunities and challenges that exist within the Texas energy sector.
Among many topics discussed, the event honed in on the Eagle Ford Shale’s importance to the region’s economy and its outsized influence in Texas’ energy production. Todd Staples, President of TXOGA, asserted both of these points when he told the panel that the “Eagle Ford is an economic engine for the South Texas region and plays an essential role in our state’s global energy dominance.”
Webb County, ranked number 1 in the Eagle Ford after receiving $33.3 million in oil and natural gas property taxes in the last year alone, is a reflection of the area’s economic growth thanks to the energy sector.
Staples also mentioned the importance of utilizing an “energy plus” approach, combining oil and gas with emerging technologies like hydrogen and biofuel energy. The need for a diversified energy portfolio would support energy security long into the future.
Another significant theme from the wide-ranging discussions was nearshoring and its impact on Texas’ energy sector. Also known as the strategic practice of outsourcing energy tasks to nearby countries such as Mexico, nearshoring has gained momentum in recent years.
Panelists in the roundtable highlighted how a recent nearshoring boom in Mexico is upping the demand for more natural gas resources, which presents opportunities that benefit Texas. Mike Howard, CEO of Howard Energy Partners, used this opportunity to talk about a symbiotic relationship between Texas and Mexico when dealing with these types of energy discussions. The demand for more energy by these activities in Mexico, he said, will encourage more oil and gas production in Texas.
When getting into the ripple effects that would result from nearshoring, Cliffe Killam, President and CEO of Killam Oil company, indicated there would need to be significant investments in infrastructure on the border of Texas and Mexico to support this new level of industrialization. Among many needs, Killam noted that a new and expanded power infrastructure would be needed in order to meet the new demands.
The roundtable discussions at “South Texas Energy Impact: Laredo” provided all sorts of insights into the dynamic and ever-changing Texas energy sector. With a focus on innovation, collaboration, and adaptability, all involved stand to learn from emerging energy trends and capitalize on new opportunities, ensuring consistent growth for Texas.
