Saudi Texas

Big Red Car here.  Well the rain has stopped but it’s going to be a cool and humid day in the ATX.  Hey, we like cool in July and who doesn’t?

So The Boss is out early this morning but no work for a Big Red Car.  The Boss won’t take a Big Red Car along unless there is sunshine in the forecast.

Speaking of sunshine, let me blow a bit of sunshine up your skirt this morning.  Welcome to Saudi Texas!

Oil production in Texas is on a roll.  Look at this graph, ya’ll.

This has several very positive implications.

1.  Texas oil production is increasing to levels not seen since the mid-1980s creating wealth, jobs, tax revenue and economic vigor.

2.  The jobs related to the energy industry are great jobs.  High paying jobs.  Bureau of Labor Statistics reports that average Texas Oil Patch jobs earn $112,000 annually v $47,000 statewide for all of Texas.  These are damn good jobs and these are 2011 numbers.

3.  Texas Oil Patch jobs have a FOUR times multiplier increasing the demand for all other support services.  This is a huge shot in the arm for local economies.

4.  Texas produced THREE times as much oil as the number two producing state — North Dakota.

5.  The Texas Rainy Day Fund is a huge beneficiary of severance taxes which have blossomed the Fund to annual inflows of $1,900,000,000 in FY 2013.  Texas has more than $8,000,000,000 in its Rainy Day Fund.

Of course, you know that Texas has a balanced budget and actually saves a bit of money in the short term annually.  Wow, how can Texas do that and the United States can’t?  It’s called governing philosophy, Old Sport.  Texas has a conservative view of thangs and well, those jack offs in Washington, the District of Columbia, are profligate drunken spenders.  Crack head spenders.

Well, I guess that governing philosophy mojo really means something, Big Red Car.  Yes, it does, Grasshopper.

But, hey, what the Hell do I know anyway?  I’m just a Big Red Car but I live in Texas where we’re creating wealth and jobs.  Damn good high paying jobs!  On Earth as it is in Saudi Texas!






7 thoughts on “Saudi Texas

  1. Amazing data, I feel a lot of envy. However, oil is not something that you can find anywhere, so Texas success in this field is not directly transferable to other places.

    Maybe the lesson is to do well what you have at hand, be it energy, tourism, technology… Embrace it, manage money with care and things will work out. Many countries with plenty of oil –or any other commodity, really– are really poorly managed and only a few people collect the profits and don’t create wealth (Saudi Arabia, Venezuela, Iran.. even Rusia or Kuwait can’t compare to Texas).

    • .
      I think you have hit the nail on the head. “…do well what you have at hand…”

      The miracle of Texas is that there is NO miracle. Texas has an enviable source of wealth but it also has a fiscally responsible and conservative governing philosophy. No personal income tax and very, very low corporate taxes.

      Comparing California and Texas is a fair comparison. California is arguably blessed more than Texas because of its Pacific Rim location but Texas has husbanded and stewarded the resources of its land and the work of its people in a way that drives prosperity.

      Prosperity — strong economy and good jobs — is not a 4-letter word. It is the “pursuit of happiness” promised by the Founders.

      Government is punishing people when they steal their labor. The benefits of labor belong to the people and government should not take one farthing more than necessary to provide the services that people cannot provide for themselves.


  2. With all that cash, would Texas like to acquire Massachusetts? If the possibility exists, I would like to work on the acquisition integration project.

    • .
      I have heard a bit of buzz about perhaps buying Nantucket and working our way inland from there. We will have to deal with the stigma of being “off islanders”, I suppose.

      Half of the summer is gone. Hope you are having a great one.


      • Unfortunately a chunk of Nantucket is now owned by NYC and Washington DC. It would have to be joint venture.

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