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Texas oil production slumps 5 percent

Production from November down more than 4 million barrels from the previous month.
By Daniel J. Graeber Follow @dan_graeber Contact the Author   |   Updated Jan. 22, 2016 at 9:54 AM
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AUSTIN, Texas, Jan. 22 (UPI) -- Crude oil production of 70.9 million barrels in November for Texas was nearly 4 million less than the previous month, a state energy regulator said.

The Railroad Commission of Texas, the state's energy regulator, reported crude oil production for November at 70.9 million barrels per day, about 4 million barrels, or 5 percent, lower than for the month of October.

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A decline in crude oil prices means less capital is available for exploration and production. While some inland shale basins in Texas are more resilient than others in the weakened market, the state regulator said it issued 727 original drilling permits in December, about 51 percent less than the total issued for the same month in 2014, as the appetite wanes.

The daily average level of crude oil production for November was nevertheless higher than last year by about 5 percent to 2.4 million barrels per day, the regulator said in an emailed report.

Tax revenues for the state from the energy sector are down by about 50 percent from 2014, a review from the U.S. Energy Information Administration found. Though it's the No. 1 oil producer in the nation, EIA said tax data show the Texas economy is more diversified than other oil producers.

State data from November, the last full month for which data are available, show the seasonally adjusted rate of employment increased 0.2 percent from October to 4.6 percent. The national rate is around 5 percent.

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