Preliminary data from the Railroad Commission of Texas (RRC) show that both crude oil and natural gas production in the Lone Star State climbed during June.
June crude oil production averaged 2.16 million b/d, up from 1.68 million b/d in June 2013, according to the RRC. The preliminary June crude production total is 64.71 million bbl, up from 50.34 million bbl a year ago. In June Texas oil and gas wells produced 602.89 Bcf of gas based upon preliminary figures, up from 554.51 Bcf a year ago. Preliminary June production averaged 20.10 Bcf/d.
Estimated final production for June is 76.95 million bbl of crude oil and 523.91 Bcf of gas well gas. The RRC derived final production by multiplying preliminary June totals of 64.71 million bbl of crude oil and 457.56 Bcf of gas well gas by an adjustment factor of 1.1892 for crude and 1.1450 for gas well gas. Totals do not include casinghead gas or condensate.
But the final official Texas crude oil production figure will likely be considerably less than that 76.95 million bbl calculated figure, according to Patrick Rau, NGI director of strategy and research. “Crude oil production for March, April, and May 2014 came in at between 69.0 and 70.4 million bbl. The high end of that range, which occurred in March, is the only time total production has topped 70 million bbl in Texas in any month since January 2008,” he said. “Moreover, monthly crude oil production measured on a year-over-year percentage basis has been falling steadily since posting a 48.5% y/y gain in February 2012. By comparison, May 2014 production was up just 10.4% y/y. The June 2014 estimated 76.95 production figure would represent a 23.3% y/y gain, which would be a sudden and vast departure from the recent downward trend.”
Karnes County in the Eagle Ford Shale region was once again the top oil producer during the month, with 6.1 million bbl in June. It was followed by La Salle (4.7 million bbl) and De Witt (4.2 million bbl) counties, which are also in the Eagle Ford. On the gas side, Tarrant County in the Barnett Shale again earned the top spot with 54.6 Bcf of production, followed by Webb (34.5 Bcf from the Eagle Ford) and Johnson (27.6 Bcf from the Barnett) counties.
In the last 12 months, total reported production was 802 million bbl of oil and 7.9 Tcf of natural gas.
The RRC issued 2,419 original drilling permits in July (761 for oil, 134 for gas, 1,422 for oil and gas, 78 for injection wells, one service and 23 other) compared to 1,843 in July 2013.
In July operators reported 1,958 oil, 234 gas, 73 injection and eight other well completions compared to 1,860 oil, 470 gas, 49 injection and five other well completions in the year-ago period.
The top five RRC districts for oil well completions in July were Midland, San Angelo, Lubbock, San Antonio and North Texas. The top five districts for gas well completions were San Antonio, North Texas, East Texas, Panhandle and Refugio. Total well completions for 2014 through July are 18,101, up from 15,124 during the year-ago period.