RRC PRODUCTION STATISTICS AND ALLOWABLES FOR JULY 2011

06/29/2011

AUSTIN –– The Texas average rig count as of June 17 was 836, representing about 46 percent of all active land rigs in the United States. In the last 12 months, total Texas reported production was 365 million barrels of oil and 7.2 trillion cubic feet of natural gas.

The Commission’s estimated final production for April 2011 is 31,364,591 barrels of crude oil and 526,949,177 Mcf (thousand cubic feet) of gas well gas.

The Commission derives final production numbers by multiplying the preliminary April 2011 production totals of 28,748,479 barrels of crude oil and 476,316,711 Mcf of gas well gas by a production adjustment factor of 1.0910 for crude oil and 1.1063 for gas well gas. (These production totals do not include casinghead gas or condensate.)

Texas natural gas storage reported to the Commission for May 2011 was 395,952,262 Mcf compared to 375,524,728 Mcf in May 2010.  The June 2011 gas storage estimate is 393,588,197 Mcf.

The Texas Railroad Commission’s Oil and Gas Division set initial July 2011 natural gas production allowables for prorated fields in the state to meet market demand of 11,597,802 Mcf (thousand cubic feet). In setting the initial July 2011 allowables, the Commission used historical production figures from previous months, producers’ demand forecasts for the coming month, and adjusted the figures based on well capability. These initial allowables will be adjusted after actual production for July 2011 is reported.