American Oil and Gas Reporter - August 2017 - 16

IndustryDigest
May Texas Petro Index
Continues Upward Trek

WICHITA FALLS, TX.-Oil and gas
activity in Texas increased for the sixth
consecutive month in May, increasing
5.7 percent over a year ago, according
to the latest Texas Petro Index (TPI).
The TPI, a service of the Texas
Alliance of Energy Producers, increased
from 159.8 in May 2016 to 168.9 in May
2017, and was up 4.1 points over April's
TPI of 164.8, even though crude oil
prices on the New York Mercantile
Exchange for 30-day delivery declined
from $48.26 on June 1 to $44.89 on June
30, indicating that activity may slow,
too.
"The industry clearly is in better
shape than it was a year ago," says Karr
Ingham, the economist who created the
TPI and updates it monthly. "However,
crude oil price sentiments have turned
from bullish to bearish as U.S.
production growth-particularly in
Texas-continues to frustrate efforts by
the Organization of Petroleum

Exporting Countries and others to . . .
better balance supply and demand.
"Upstream activity in Texas is going
to plateau at some point, absent a
meaningful increase in crude oil prices,
and that increase simply has not
materialized," Ingham adds.
Among the May TPI's highlights,
Ingham reports:
* Texas' estimated crude oil
production totaled 103.4 million barrels,
4.4 percent more than in May 2016.
With oil prices in May averaging
$45.06 a barrel, the value of Texas
crude oil was $4.7 billion, 8.5 percent
more than in May 2016.
* Texas' natural gas output was
675.7 billion cubic feet, a year-overyear decline of 3.7 percent. With natural
gas prices averaging $3.04 an Mcf in
May, the value of Texas-produced gas
increased 62.4 percent to more than
$2.0 billion.
* The Baker Hughes count of active
drilling rigs in Texas averaged 453
units, 148.9 percent higher than in May
2016 when an average of 182 rigs were

SPE Liquids-Rich Basins
Conference-North America
New Technology for Old Plays

working.
* The state of Texas issued 1,021
original drilling permits in May 2017,
68.5 percent more than the 606 permits
issued in May 2016.
* An estimated average of 207,850
Texans remained on upstream oil and
gas industry payrolls, 6.5 percent more
than in May 2016, but 32 percent fewer
than the estimated high of 306,020 in
December 2014. r

Citing Market Realities,
EPA Lowers Volumes
For Renewable Fuels

WASHINGTON-Renewable fuel
volumes released by the U.S.
Environmental Protection Agency for
calendar year 2018 propose essentially
maintaining 2017 standards for volume
requirements and associated percentage
standards. The requirement sets the
minimum amount of renewable fuels
that must be supplied to the market
annually.
"Increased fuel security is an

Register
Now!
www.spe.org/go/LRBCreg

The event will feature a mix of
presentations and formal papers and
focus on current operations practices
and development of tactics which
are driving today's exploitation of
liquids-rich reservoirs. We encourage
engineers of all disciplines, operations
and management personnel, and all
within the geological fields to attend.

13-14 September 2017
The Petroleum Club
Midland, Texas USA

16 THE AMERICAN OIL & GAS REPORTER
http://www.spe.org/go/LRBCreg
American Oil and Gas Reporter - August 2017

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