The continuing expansion in the energy sector propelled Texas oil production to new levels in the second quarter of 2014, as evidenced by Karr Ingham’s Texas Petro Index (TPI), which hit a record-high of 308.4 in June. Ingham, an economist for the Texas Alliance of Energy Producers, covered the second-quarter TPI in a presentation at Houston’s Petroleum Club Thursday.
The TPI is a composite index that is derived from a comprehensive set of upstream indicators, including the price per barrel of oil, rig count, drilling permits and completions, oil and gas production volume and other indicators. It provides a picture of the overall energy health of the state. The June 2014 TPI is 7.4 percent than it was in June 2013. Compared with the January 1995 base of 100 percent, the June 2014 TPI is up 213.7 percent.
Texas oil production has been increasing for last 54 months, sending production in the state up 180 percent during that period. Texas is now in a position to eclipse its all-time 1972 production record within two years, Ingham said.
The continued strength in energy so far in 2014, driven in part by geopolitics in other regions, is stronger than expected after the robust year the industry had in 2013, Ingham said in a July 25 press release. Oil prices have been pushed above the $100-barrel mark, and have kept the oil and gas industry’s upward momentum going.
The price of crude oil would probably be even higher were it not for restrictions on exporting crude oil and liquefied natural gas, Ingham said. Higher prices, he added, would encourage producers to continue their exploration and production.
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