RRC Holiday Closure

In observance of the Memorial Day holiday, the Railroad Commission of Texas will be closed on Monday, May 29. The agency will reopen for business on Tuesday, May 30.

RRC PRODUCTION STATISTICS AND ALLOWABLES FOR OCTOBER 2010

09/29/2010

AUSTIN –– The Texas average rig count as of Sept. 17 was 729, representing about 45 percent of all active land rigs in the United States. In the last 12 months, total Texas reported production was 349 million barrels of oil and 7.3 trillion cubic feet of natural gas. Texas natural gas production represents approximately 29 percent of total U.S. natural gas demand.

The Commission’s estimated final production for July 2010 is 30,634,258 barrels of crude oil and 547,892,903 Mcf (thousand cubic feet) of gas well gas.

The Commission derives final production numbers by multiplying the preliminary July 2010 production totals of 28,689,135 barrels of crude oil and 510,047,387 Mcf of gas well gas by a production adjustment factor of 1.0678 for crude oil and 1.0742 for gas well gas. (These production totals do not include casinghead gas or condensate.)

Texas natural gas storage reported to the Commission for August 2010 was 336,492,207 Mcf compared to 423,074,268 Mcf in August 2009. The September 2010 gas storage estimate is 363,126,647 Mcf.

The Texas Railroad Commission’s Oil and Gas Division set initial October 2010 natural gas production allowables for prorated fields in the state to meet market demand of 14,966,679 Mcf (thousand cubic feet). In setting the initial October 2010 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 October 2010 is reported.