Texas keeps shale revolution moving forward despite the low prices

State of Texas seal
Source: DollarPhotoClub

UPI have reported that oil and gas production in the shale-rich state of Texas will continue to grow due to operators being more efficient. Speaking at the 21st Annual Executive Oil Conference in Midland, Texas, Railroad Commission Chairman, David Porter, told those gathered that “Texas is stronger today because of oil and gas shale development”.

“We’ve maintained record production levels – in the face of major challenges – here in Texas because industry has become more innovative and more efficient, and that is an accomplishment to be very proud of.” Porter said.

According to UPI, Texas is the top producing state in the U.S. despite the current downturn. The total oil production of roughly 2.8 million barrels per day for August, the last full month for which data is currently available, was more than 10 percent lower than for January. The total gas production for August of 20.8 million cubic feet per day was about 13 percent less than January.

Oil services company Baker Hughes reported last week the number of rigs currently operating in Texas was 340, down 62 percent from the 906 active at this time last year. Also, according to the last Drilling Productivity Report from the Energy Information Administration (EIA), Texas oil and gas production from the Eagle Ford region will slightly decrease for the months of November and December.

The International Energy Agency (IEA), during yesterday’s World Energy Outlook conference in London, also presented a decline with estimates that U.S tight oil production would decrease by 3 million barrels per day if prices stayed around the $40 mark until 2020.

Production change - Eagle Ford - Dec Vs NovSource: EIA – http://www.eia.gov/petroleum/drilling/

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