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Texas crude oil production up 3 percent before Harvey slowdown

Preliminary data show about 75.2 million barrels of oil produced in June, though early figures tend to be on the low side.

By Daniel J. Graeber
Texas crude oil production up 3 percent before Harvey slowdown
Preliminary data from Texas show crude oil production was higher than last year by about 3 percent in June, the last full month for which official data were published. File Photo by ekina/Shutterstock

Aug. 30 (UPI) -- The energy regulator in Texas said data from the industry show the average daily volume of crude oil production was up about 3 percent from last year.

Production reported to the Railroad Commission of Texas, the state energy regulator, for June, the last full month for which data are available, was 2.51 million barrels of oil per day, compared with the June 2016 average of 2.43 million bpd.

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The preliminary volume for the full month was 75.2 million barrels of crude oil. That's compared with the preliminary 72.8 million barrels for June 2016, which was later revised upward to 81.5 million barrels.

A 2015 review of state data from the U.S. Energy Information Administration found Texas estimates tended to be on the low side because of incomplete data. EIA found revisions to state data usually show an average increase of around 30 percent and data issues are usually resolved in about two years.

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The Permian shale basin in Texas is considered one that's more resilient to the type of depressed market that sidelined investments last year and considerable gains are expected this year by the EIA. The Eagle Ford shale, meanwhile, could show small production declines because of the impact from Tropical Storm Harvey. Several inland operations were shut in early this week because of heavy flooding and the Eagle Ford shale this week was in the direct path of the storm.

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A snapshot of the market impact from Harvey by commodity pricing group S&P Global Platts said the disruption to the regional energy sector was "massive" as Harvey strengthened as it moved toward Louisiana and regional refining hubs there. The Houston office for the Railroad Commission was closed Wednesday because of Harvey's impact.

An early August report from global consulting firm McKinsey & Co. found that, under a scenario where the price of oil moves above $60 from 2019, output from the Permian shale in particular could drive about 20 percent of the growth in exploration through 2021, in part because efficiency has improved.

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