Oil and gas drilling in Texas was down slightly in June 2014 from year-earlier levels, but drilling permits were up, according to data released July 29 by the Railroad Commission of Texas, the state’s regulatory authority on oil and gas.
There were 1,739 oil well completions in June 2014, compared with 1,826 gas well completions for the same month one year earlier, the RRC said. However, in the first six months of 2014, there have been 15,828 well completions, compared with 12,740 completions for the first half of 2013. That is an indication, analysts say, that growth in the Permian Basin and the Eagle Ford remains strong.
“Some analysts expect Permian production to more than double by 2018 to 2 million [barrels per day] – a level last reached during the 1970s,” wrote Robert Rapier, analyst for Investing Daily, late last year.
The Eagle Ford Shale formation “will be a top contributor to the U.S. oil output over the next 10 years,” said Standard and Poor analysts earlier this year.
New permits in June 2014 reached 2,185, compared with June 2013’s total of 1,876 permits. Of the June 2014 permits (according to the RRC):
Texas oil and gas wells in May 2014 produced a preliminary figure of 617,988,757 million cubic feet (MMcf), up from a May 2013 preliminary figure of 557,899,127 MMcf. Total preliminary natural gas produced in May 2014 was 19,935,121 MMcf per day.
May’s natural gas figures came from 165,220 oil wells, and 92,842 natural gas wells, the RRC said.
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