The Texas Petro Index, a composite index based on a comprehensive group of upstream economic indicators, showed that crude oil production in the Lone Star State increased 21% in 2013 compared with 2012, reaching volumes not seen since 1985.
The TPI, released by the Texas Alliance of Energy Producers (TAEP), concluded that Texas oil and gas producers facilitated one of the upstream industry's most successful years in 2013. Put into a national perspective, the state accounted for about 31% of all US oil production.
Texas crude oil production in 2013 reached 856.8 million bbl, marking the sixth consecutive year in which statewide production rose. Compared with 2007 when 389.9 million bbl were produced, it was a 120% jump.
The year ended strongly with yet another new high in December, reaching 295. It was the fourth consecutive month that new highs have been achieved.
“The statewide upstream oil and gas economy in July finally recovered fully from the nadir of December 2009 and surpassed the previous peak TPI (287.6) achieved in the late fall 2008,” said Karr Ingham, creator of the TPI.
Almost all the growth in 2013 was driven by crude oil, but wellhead prices helped natural gas.
The estimated value of Texas-produced crude oil increased 27% to about $81 billion, with wellhead prices increasing slightly at 4.2% and production up about 150 million bbl, the TPI said.
The estimated value of Texas-produced gas increased 29.6% to $28.56 billion, as wellhead prices increased 31.8% to $3.60/Mcf while production declined slightly at 1%.
The TPI reported 276,092 Texans on average were employed in the oil and gas production, drilling, and service sectors in 2013, a 6.4% rise compared with 2012, when the average was 259,575. Upstream industry employment hit a record 282,700 in August before declining during the remainder of the year.
There was an average of 280,300 Texans on oil and gas payrolls in December, 4.8% more than December 2012, according to statistical methods based upon Texas Workforce Commission estimates.
Industry employment in Texas reached a record 282,700 in August 2013, compared with a low of 179,200 in October 2009. During the previous growth cycle, industry employment peaked at 223,200 in November 2008, the TPI said.