Everyone even slightly familiar with the oil production landscape in the United States knows that Texas is the heart and soul of oil country in America. With not one, but three highly productive oil producing regions, the oil and gas industry has always been a vital part of the Texas economy. While Texas has always had a robust conventional oil drilling industry, the advent of horizontal drilling and hydraulic fracturing has caused production to explode over the last decade. Last year Texas oilfields pumped over 4.8 MMbbl/d, two and a half times as much as any other state. With new pipelines opening in 2019 and 2020 capable of moving almost 2MMbbl/d in additional crude oil to coastal refineries, Texas is poised to continue its major growth trajectory.
Texas Permian Basin
Even in oil-rich Texas, the Permian Basin is a prolific producer. As one of the only shale plays to continue to increase output throughout the 2015 oil market downturn, the Permian Basin pumps more barrels per day than the Bakken and Eagle Ford shale plays combined, currently around 3.5MM.
In November 2018, the United States Geological Survey (USGS) estimated that the Permian Basin held recoverable reserves of at least 46.3 billion barrels, more than 3 times the amount of the Bakken / Three Forks region 2013 assessment, and 19 times larger than the Eagle Ford shale estimate from 2012. This made the Permian shale play not only the largest known oilfield in the United States, but the second largest known oilfield in the world.
Eagle Ford Shale Play
Although it has been eclipsed over the past few years by the influx of investment in the Permian Basin, the Eagle Ford shale play in South Texas remains the most productive tight oil play ever discovered. Over the past few years the Eagle Ford has surged from lows hit during 2015, due to a falling breakeven price average of $34/bbl, and production of nearly 1.4 MMbbl/d.
Today, as global crude demand stabilizes and global growth results in increased demand, opportunities for growth in this vital oil and gas region are present. However, with traditional lending institutions still cautious about increasing lending concentrations in this industry, businesses in need of funding may have to look elsewhere to generate the cash flow they need to grow.
Anadarko Basin
Largely located on the western border of Oklahoma and the Texas panhandle, the Anadarko basin has grown quite rapidly in the last several years. In August 2017, the EIA finally began adding production numbers for the Anadarko Basin to their weekly shale production reporting, marking a rise to prominence for the growing oilfield.
The Anadarko Basin is not only a great crude oil formation but contains one of the largest natural gas deposits in the United States. This has caused natural gas production in Anadarko to spike over the last several years, bringing its production second only to the Marcellus Basin in the Eastern United States.
Texas oilfield service companies seeking funding as the oilfields begin to ramp back up find a strong partner in Oilfield Factoring. As an invoice factoring company who remained committed to our oil and gas clients even through the volatile downturn, Oilfield Factoring has the stability and expertise to partner with companies in any oilfield sector and allow them to grow and be successful.
Invoice factoring is a great solution for companies looking to fund growth without taking on additional debt. And, with our years of experience navigating the nuances of oilfield billing and payment systems, our clients can count on Oilfield Factoring to provide world-class service and quick, efficient payments.
Your Texas Oilfield Factoring Partner
Oilfield Factoring has partnered with great Texas oilfield service providers for many years, providing them with invoice factoring solutions that have helped them grow even through turbulent times. Our commitment to oil and gas companies all over Texas has allowed Oilfield Factoring to provide world class client care and timely cash flow solutions.
From wellhead service companies to water haulers, from pipe welders to pipeline inspectors, Oilfield Factoring has funded a wide swath of companies servicing the oil and gas industry. This breadth of knowledge and industry experience gives us the flexibility to work with oil and gas service companies in all types of business situations, from handshake deals to formal MSA’s. So, whether you are a crude hauler, vac truck, sandblaster, well cleaner, or any other O&G service company, you can have the confidence that our oilfield invoice factoring solution will improve your cash flow and help your business grow.
“Texas oilfield factoring has always been a crucial part of our business portfolio.
Especially in volatile economic times, we feel it is important to provide invoice factoring solutions to companies in the Permian Basin and elsewhere in Texas in order to support their growth. It is a responsibility we take seriously and we are humbled by the opportunity.”
– Jens Schkade, Owner Oilfield Factoring