The Lone Star State’s oil and natural gas output in June retreated from a year ago and month/month, with production at the lowest level in 16 months, according to preliminary data by Texas regulators.
The Railroad Commission of Texas (RRC) production report for June, issued late Thursday, said combined crude oil and condensate output fell to 98.8 million bbl from 101.32 million bbl in June 2017 and from May 2018’s total of 106.48 million bbl.
Combined, natural gas well and casinghead gas also fell from a year ago to 615.21 MMcf from 661.54 MMcf, and output declined from 663.88 MMcf reported in May.
Crude oil/condensate production in June was the lowest reported since February 2017, when output totaled almost 92.01 million bbl. Gas well/casinghead gas also hit a low not seen since February 2017, when production was 603.97 MMcf.
State officials did not speculate on why output fell. However, the Permian Basin for the last few months has seen increasing signs of tightening pipeline capacity for gas and for oil, and prices have been squeezed.
The RRC said production in June flowed from 181,669 oil wells and 91,665 gas wells. In addition, the RRC reported that the percent of produced gas exported from Texas increased 34% from June 2017, likely the result of increasing pipeline exports to Mexico.
Regulatory officials cautioned that the June production data was preliminary, and said “significant changes” could occur because of late filings or corrected reports.
According to the initial data, crude oil production alone declined in June year/year (y/y) to 88.86 million bbl from 90.09 million bbl and from 95.57 million bbl in May. Condensate production was down from a year ago to 10.06 million bbl from 11.22 million bbl and off from 10.91 million bbl in May.
Gas well production in June was off y/y at 391.15 MMcf from 442.03 MMcf and from almost 423.20 MMcf in May. Casinghead gas, aka oil well gas, was the only category that climbed y/y to 224.06 MMcf from 219.51 MMcf, but it was down from 240.69 MMcf reported in May.
Between July 2017 and June, total crude oil production in Texas was estimated at 1.146 billion bbl. Crude oil production reported by the RRC is limited to oil produced from oil leases and does not include condensate, which is reported separately.
Total natural gas output between July 2017 and June was estimated at 8 Tcf, according to the data.
Crude oil production in June was higher on a daily basis y/y, averaging 2.96 million b/d from 2.51 b/d. Gas output also was higher on a daily basis from a year ago, averaging 20.51 MMcf/d from 19.71 MMcf/d.