Texas Petro Index hit new high in December 2013

TEXAS – The Texas Petro Index hit a new record in December, rising for the fourth consecutive month, according to the Texas Alliance of Energy Producers.

The measurement, a composite index based on several upstream economic indicators, hit 295.0 last month, up 6.7 percent from a year ago and above the previous high of 287.6 set in October 2008. Nearly all of the growth in 2013 was driven by crude oil, but higher wellhead prices for natural gas was a contributing factor.

For all of 2013, Texas crude oil production totaled 856.8 million barrels, which accounted for 31 percent of all U.S. oil production and is the highest statewide total since 1985.

Among the highlights of the report:

• The statewide working rig count averaged 835, about 7.1 percent less than in 2012.
• The Texas Railroad Commission issued 21,471 drilling permits, compared to 22,479 permits issued in 2012.
• The estimated value of Texas-produced crude oil increased by 27 percent to about $81 billion, with wellhead prices increasing slightly (4.2 percent) and production up by nearly 150 million barrels.
• The estimated value of Texas-produced natural gas increased 29.6 percent to $28.56 billion, as wellhead prices increased 31.8 percent to reach $3.60/Mcf while production declined slightly (1.0 percent).
• About 276,092 Texans on average were employed in the oil and gas production, drilling and service sectors during 2013, up about 6.4 percent compared to 2012 (average of 259,575). Upstream industry employment reached a record 282,700 in August before declining during the remainder of the year.