A study conducted by the Federal Reserve Bank of Dallas came up with some pretty surprising figures.
Consider this. From 2010 to 2015, the U.S. boom in horizontal drilling and hydraulic fracturing upped the country’s gross domestic product (GDP) by 1 percent. That works out to 10 percent of total GDP growth. This while fracing only accounts for 1.5 percent of the economy.
The federal Energy Information Administration (EIA) has reported U.S. crude production jumped to 9.4 million barrels per day (B/D) from 5.5 million B/D in those five years.
According to the Dallas Fed, U.S. shale oil production rose by more than 7 million barrels per day (mb/d) from 2010 to 2019. Moreover, all U.S. oil production, which had fell to 4.4 mb/d in mid-2005, has since nearly tripled to 12.2 mb/d.
The bulk of U.S. shale oil production is in Texas and North Dakota. Since the beginning of 2010, North Dakota’s output rose from 235,000 barrels per day to 1.4 mb/d in 2018. Texas’ crude oil output soared from 1.1 to 5.0 mb/d. Texas produces more than half of U.S. shale oil.
In the beginning of the shale boom from 2011 to 2014, oil prices averaged $95 per barrel. Texas and North Dakota benefited with strong employment and GDP growth. North Dakota’s GDP expansion was 4.5 times that of the U.S., while Texas’ was 1.5 times. Similarly, North Dakota’s employment grew 5.3 percent and Texas’ 3.0 percent. During the same period, U.S. employment went up only 1.7 percent.