Energy companies completed more than 680 natural gas wells in Texas during the month of February, the highest number in 30 years, according to the Railroad Commission of Texas.

The state remains the largest natural gas producer in the country, averaging 5.7 Tcf/year, which represents almost 30% of total U.S. production. In addition, Texas is the largest gas exporter and also is the largest gas consumer, averaging 3.9 Tcf/d, according to the commission. Texas regularly exports about 1.8 Tcf per year, mostly to the Northeast and Midwestern states, and more recently to Mexico.

“As demand increases for clean burning natural gas in generating electricity and heating throughout our country the Texas oil and gas industry has had to increase drilling in order to maintain reasonable prices for consumers,” said Charles Matthews, one of the state’s commissioners. “The numbers reported today show that the industry has worked hard to increase production of natural gas.”

Since 1999, the number of new gas-fired merchant power plants built in Texas has increased by more than 25,000 MW of new generating capacity, the equivalent of about 50 new power plants. Another 5,000 MW is under construction and will be online over the next year and a half. These plants continue to put demand pressure on the natural gas market.

“Although we have yet to see an increase in the production figures, I am hopeful that these completion numbers are an indicator of increased supply and moderate prices,” said Matthews.

©Copyright 2004 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.