Over the past six months oil prices have fallen about 40 percent, but despite record lows Texas production has seen a resurgence over previous years.
According to the Energy Information Administration (EIA), this year Texas produced 3.18 million barrels a day for the first time since the late 1970s. That is a 22 percent increase from last year’s impressive production of 2.6 million bpd.
Economist for the Texas Petro Index, Karr Ingham states Texas issued a record 934 (drilling) permits in September before dropping to 885 in October.
Although more than a 5 percent reduction, it is still double the permits issued the same month in 2010 when the shale boom first started. Not exactly a reason to hit the panic button, but it does indicate a slight decline not seen over the past two years.
In an interview with CNBC this morning, Andy Lipow, President of Houston-based Lipow Oil Associates said, “even with lower prices, drilling will continue in Texas and the Gulf of Mexico.”
The shale oil boom has boosted the Texas economy producing 23 percent more oil from a year earlier, according to the Texas Petro Index.
The Texas Independent Producers & Royalty Owners Association (TIPRO) reported the oil and gas industry directly supports more than 400,000 jobs in Texas, a figure that has risen for five consecutive years.