So far in 2016, oil production and regulation tax revenues in Texas, the largest oil-producing state, are down 44% to $1.2 billion.
The continued retreat from low prices by oil and gas producers has helped ravage revenues in the sector. Among large-cap E&Ps, market losses reached $555 billion between third-quarter 2014 and fourth-quarter 2015.
But members of OPEC, which have left production open almost at full throttle, are seeing huge losses themselves.
OPEC oil export revenues, unadjusted for inflation, fell to about $404 billion in 2015, a 46% decline from the $753 billion earned in 2014, according to a report by the U.S. Energy Information Administration (EIA). The 2015 revenue total was the lowest amount earned by OPEC since 2004 export revenue totaled $295.1 billion (or $370.3 billion in 2015 dollars).
OPEC’s de facto leader and largest producer, Saudi Arabia, earned the largest share of export revenues with $130 billion in 2015. The kingdom’s share was one-third of total OPEC oil revenues.
However, Saudi Arabia’s revenue also lost the most in terms of value. The kingdom’s export revenues cratered by $116 billion, or 47%, from 2014.
Even less revenue could be in store for OPEC. The EIA estimates the cartel’s net oil export revenues could fall to $341 billion in 2016—another 16% drop—based on projections of global oil prices and OPEC production levels.
EIA’s June Short-Term Energy Outlook estimates production will rise 800,000 barrels per day (Mbbl/d) to 32.4 MMbbl/d in 2016.
Including Iran, the median export revenue loss for OPEC nations was $24.3 billion last year. On a per capita basis, OPEC countries’ net oil export earnings are expected to deteriorate by about 17% in 2016.
Darren Barbee can be reached at dbarbee@hartenergy.com.
Recommended Reading
Dallas Fed Energy Survey: Permian Basin Breakeven Costs Moving Up
2024-03-28 - Breakeven costs in America’s hottest oil play continue to rise, but crude producers are still making money, according to the first-quarter Dallas Fed Energy Survey. The situation is more dire for natural gas producers.
Exxon Shale Exec Details Plans for Pioneer’s Acreage, 4-mile Laterals
2024-05-03 - Exxon Mobil plans to drill longer, more capital efficient wells in the Midland Basin after a major boost from the $60 billion Pioneer Natural Resources acquisition. Data shows that Exxon is a leading operator drilling 4-mile laterals in the Permian’s Delaware Basin.
ONEOK CEO: ‘Huge Competitive Advantage’ to Upping Permian NGL Capacity
2024-03-27 - ONEOK is getting deeper into refined products and adding new crude pipelines through an $18.8 billion acquisition of Magellan Midstream. But the Tulsa company aims to capitalize on NGL output growth with expansion projects in the Permian and Rockies.
Exxon Closes $60B Pioneer Deal, Reshaping Permian Basin
2024-05-03 - After facing regulatory scrutiny, Exxon Mobil closed a roughly $60 billion acquisition of Pioneer Natural Resources. The largest shale oil transaction ever signed will reshape the order of power in the vast Permian Basin oil field.
Diamondback, Verde Plan Converting Permian Natgas to Gasoline
2024-02-13 - Diamondback Energy subsidiary Cottonmouth Venture LLC has entered into a joint development agreement with Verde Clean Fuels to build a natural gas-to-gasoline facility in the Permian Basin.