Texas Railroad Commission Issued 2,201 Original Drilling Permits In March
The Texas Railroad Commission issued 2,201 original drilling permits in March, compared to 1,995 the same time the year before. The March total included 1,974 permits to drill new oil and gas wells, 84 to re-enter existing well bores, and 143 for re-completions. Permits included 739 oil, 163 gas, 1,209 oil and gas, 64 injection, one service and 25 other permits.
Texas preliminary February crude oil production averaged 1,137,122 barrels daily, up from the 882,550 barrels daily average of February 2011.
The preliminary Texas crude oil production figure for February was 32,976,545 barrels, up from 24,771,386 barrels reported during the same time a year ago.
In March, operators reported 943 oil, 421 gas, 99 injection and five other completions, compared to 518 oil, 334 gas, 37 injection and one other completion in March 2011.
Total well completions for 2012 year to date are 3,797 up from 2,148 recorded during the same period in 2011.
Operators reported 659 holes plugged and one dry hole in March, compared to 560 holes plugged and zero dry holes in March 2011.
Texas oil and gas wells produced 496,725,786 Mcf of gas based upon preliminary production figures for February, up from the February 2011 preliminary gas production total of 472,883,565 Mcf.
Texas production in February came from 140,822 oil wells and 90,385 gas wells.
The Texas Railroad Commission also reported the state's average rig count as of April 20 was 924, representing about 48 percent of all active land rigs in the United States.
In the last 12 months, total reported production in the state was 417 million barrels of oil and 7.2 trillion cubic feet of natural gas.
The commission's estimated final production for February was 37,326,151 barrels of crude oil and 478,457,488 Mcf (thousand cubic feet) of gas well gas. The commission derives final production numbers by multiplying the preliminary February production totals of 32,976,545 barrels of crude oil and 423,413,706 Mcf of gas well gas by a production adjustment factor of 1.1319 for crude oil and 1.1300 for gas well gas. (These production totals do not include casinghead gas or condensate.)
Texas natural gas storage reported for March was 383,705,623 Mcf, compared to 313,583,188 Mcf in March 2011. The April gas storage estimate is 379,204,711 Mcf.
The Texas Railroad Commission's Oil and Gas Division set initial May natural gas production allowables for prorated fields in the state to meet market demand of 9,907,788 Mcf (thousand cubic feet). In setting the initial May allowables, the commission used historical production figures from previous months, producers' demand forecasts for the coming month, and adjusted the figures based on well capability. These initial allowables will be adjusted after actual production for May is reported.