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by michaelchisari
3307 days ago
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Yes, California is third on a list where Texas is 1st. I don't think that disproves my point. Texas produces 35% of the country's crude oil. In March of 2017, California produced 14,907,000 barrels of crude oil. Texas produced 102,443,000. That's 7x more. Play that against the fact that Texas' GDP is 2/3rd of California's. Oil has a massive impact in Texas that it simply doesn't have in California. |
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It is very easy to validate this. Look at the price of oil. It has taken a massive beating over the last years.
Oil Price History: https://fred.stlouisfed.org/series/DCOILWTICO/
If the state is truly a petrostate, it will clearly be reflected in its GDP.
California: https://fred.stlouisfed.org/series/CARGSP
Texas: https://fred.stlouisfed.org/series/TXNGSP
North Dakota: https://fred.stlouisfed.org/series/NDNGSP
Alaska: https://fred.stlouisfed.org/series/AKNGSP
Note the massive drop in oil prices after 2014. Alaska's GDP drops around roughly the same period.
Now let's compare this to ACTUAL petrostates.
Saudi Arabia: https://tradingeconomics.com/saudi-arabia/gdp
Columbia: https://tradingeconomics.com/colombia/gdp
Brazil: https://tradingeconomics.com/brazil/gdp
Norway: https://tradingeconomics.com/norway/gdp
Mexico: https://tradingeconomics.com/mexico/gdp
Kuwait: https://tradingeconomics.com/kuwait/gdp
Russia [1]: https://tradingeconomics.com/russia/gdp
Iran [1]: https://tradingeconomics.com/iran/gdp
[1] Sanctions
See the shortfall in GDP, that is a PETROSTATE.
In March of 2017, California produced 14,907,000 barrels of crude oil. Texas produced 102,443,000. That's 7x more. Play that against the fact that Texas' GDP is 2/3rd of California's. Oil has a massive impact in Texas that it simply doesn't have in California.
This is not a good measurement to determine the exposure of the industry to overall economy. It just shows the amount the barrels that can produce. The reason why there is a massive increase in production is due to shale (fracking). The cost of producing oil through fracking is a lot higher than pumping it out of the ground. Because they still have to sell it at market prices, the margin is a lot less for these producers. To compensate for this, these producers have to frack more out of the ground to stay afloat.
Shale Exposed
Texas Field Production of Crude Oil: https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=M...
North Dakota Field Production of Crude Oil: https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=M...
Non-Shale Exposed
Alaska Field Production of Crude Oil: https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=M...
California Field Production of Crude Oil: https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=M...