Crude Oil Production Triggers Economic Increase In Texas
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Crude oil production in Texas has increased 16 percent during the first six months of 2013 over the same period in 2012, creating an economic tidal wave throughout Texas.
“Midway through 2013, the Texas oil and gas exploration and production economy is enjoying stability at a high level of activity, modest increases in aggregate activity levels, and impressive employment growth,” said Karr Ingham, petroleum economist and author of the Texas Petro Index (TPI). “The industry continues to provide fuel to statewide economic growth, and at this point all signs are pointing to a continuation of those trends through the balance of 2013.”
Crude oil production totaled an estimated 64.6 million barrels, about 8.97 million barrels more than in June 2012. Crude oil wellhead prices averaged $92.08/bbl, about 16.4 percent more than in June 2012. Production gains and higher wellhead prices combined to boost the value of Texas-produced crude oil by about 35.2 percent, to nearly $5.95 billion.
Additionally, crude oil production in first half 2013 totaled an estimated 372.2 million bbls, about 15 percent more than in first half 2012. The value of Texas-produced crude oil increased 10.4 percent to nearly $33.7 billion.
“Compared to the first six months of 2012, estimated crude oil production in Texas is up by about 15 percent midway through 2013, which in turn was up by about 35 percent compared to the same period in 2011,” he said.
Even though the Baker Hughes rig count is down 9.8 per cent in 2013 from last year with 841 active rigs, employment is up 7 percent. The number of Texans estimated to be on oil and gas industry payrolls reached a record 274,300, according to statistical methods based upon Texas Workforce Commission estimates revised in March. Industry employment in Texas dropped to a low of 179,200 in October 2009 after reaching a high of 223,200 in November 2008 during the previous growth cycle.
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