RRC Production Statistics and Allowables for January 2013

12/27/2012

AUSTIN -- The Texas average rig count as of December 2012 was 847, representing about 49 percent of all active land rigs in the United States. In the last 12 months, total Texas reported production was 510 million barrels of oil and 7.2 trillion cubic feet of natural gas.

The Commission’s estimated final production for October 2012 is 48,820,645 barrels of crude oil and 500,062,457 Mcf (thousand cubic feet) of gas well gas.

The Commission derives final production numbers by multiplying the preliminary October 2012 production totals of 41,178,007 barrels of crude oil and 430,828,342 Mcf of gas well gas by a production adjustment factor of 1.1856 for crude oil and 1.1607 for gas well gas. (These production totals do not include casinghead gas or condensate.)

Texas natural gas storage reported to the Commission for November 2012 was 463,512,227 Mcf compared to 443,491,626 Mcf in November 2011. The December 2012 gas storage estimate is 456,816,111 Mcf.

The Texas Railroad Commission’s Oil and Gas Division set initial January 2013 natural gas production allowables for prorated fields in the state to meet market demand of 9,635,103 Mcf (thousand cubic feet). In setting the initial January 2013 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 January 2013 is reported.