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Texas Crude 2019 Production: Rigs Down, Production Up05/07/2020
As you know the US Oil Rig Count has dropped by over 20% from January to December 2019. In Texas we saw oil rigs count dropping over 30% in that same time frame. However, the numbers show that the rig count has not affected oil production in a negative way.
We at Rextag have gathered some key facts about crude oil production in the US.
US crude oil production has reached a record level of 12.23 million barrels per day (b/d) in 2019. That is a 11% growth compared to the previous year. Crude oil production in 2018 was 10.9 million barrels per day.
The all time high in monthly oil production was reached in November 2019, when an average of 12.86 million b/d were produced in the United States.
In the past ten years, crude oil production in the US has registered a growth of over 220%. This is mostly due to production from tight rock formations developed using horizontal drilling and hydraulic fracturing.
Despite oil rig count dropping over 30% from January to December 2019, Texas crude oil production has hit an all time high in December 2019, with a production of 5.35 million b/d. Compared to the previous year, we have seen an increase of almost 660,000 b/d.
Since 2010, Texas crude oil production has registered a growth of over 330%, namely an increase in production by 3.9 million b/d.
In 2019, Texas accounted for 41% of US crude oil production. The Permian region is, as expected, what drives these numbers so high and will most likely keep Texas as the top oil producing state in the US.
Texas Field Production of Crude Oil
The Permian region has also boosted crude oil production in New Mexico, setting a new record for oil production in the state. Compared to 2010, there was a growth of 749,000 b/d.
Taking a look at the Offshore Federal Gulf of Mexico (the U.S. controlled waters in the Gulf of Mexico) we can also notice a production growth of 126,000 b/d in 2019. This has led to the Offshore Federal Gulf of Mexico’s highest annual average production of 1.88 million b/d.
Other states such as Colorado, North Dakota and Oklahoma have also reported a growth in production.
This increase in oil production was not however reported in all states. The oil production in Alaska has dropped for the second year in a row and also in California we can see a decline in production for the fifth year in a row.
The future of shale is looking bright: economic recovery and a spike in travel lifted oil prices to multi-year highs, helping Continental Resources to a fourth-quarter profit that exceeded Wall Street expectations. Coming off such a high note, the company plans to increase its dividend rates by 15% to 23 cents per share!
A total capacity for the area is as high as 8,576,325 Bcd according to Rextag count
Oil output in the Permian Basin in Texas and New Mexico is supposed to go up 88,000 bbl/d to a record 5.219 million bbl/d in June, as the U.S. Energy Information Administration (EIA) announced in its report on May 16. Additionally, gas productivity in the Permian Basin and the Haynesville in Texas, Louisiana and Arkansas will rise to record highs of 20 Bcf/d and 15.1 Bcf/d in June, respectively. Given that this growth has been expected, recent global market changes make forecasting the output even more challenging. Learning how production will change is easier with early activity tracking, a new service recently launched by Rextag – Pad Activity Monitor. With the help of PAM, you are able to monitor well pad clearing, drilling operations, fracking crew deployment and completions with new data collected approximately every 2 days. Additionally, it cuts down activity reporting lag times by at least 98%, from 120-180 days down to just 5-8 days. In order to access reports, charts, tables, and mapping visualizations via Rextag’s Energy DataLink use a web-based application allowing users to filter, download and identify activity on a map or data table. Moreover, customers will be able to set up daily, weekly, and monthly email report notifications.
The EIA forecasts that total output in the main U.S. shale oil basins will increase 142,000 bbl/d to 8.761 million bbl/d in June, the most since March 2020. Oil productivity in the Permian Basin in Texas and New Mexico is supposed to go up 88,000 bbl/d to a record 5.219 million bbl/d in June, as the U.S. Energy Information Administration (EIA) announced in its report on May 16. In the largest shale gas basin, the productivity in Appalachia in Pennsylvania, Ohio and West Virginia will grow up to 35.7 Bcf/d in June, its highest since beating a record 36 Bcf/d in December 2021. Gas output in the Permian Basin and the Haynesville in Texas, Louisiana and Arkansas will rise to record highs of 20 Bcf/d and 15.1 Bcf/d in June, respectively. Speaking of the Permian future output, putting hands on upcoming changes in production has recently been made easier with the new Rextag's service - Pad Activity Monitor. Thanks to satellite imagery and artificial intelligence, customers are able to monitor the oil and gas wells and are provided with near real-time activity reports related to drilling operations. However, it is noticed that productivity in the largest oil and gas basins has decreased every month since setting records of new oil well production per rig of 1,544 bbl/d in December 2020 in the Permian Basin, and new gas well production per rig of 33.3 MMcf/d in March 2021 in Appalachia.
No sooner had the crude prices soared above $100/bbl than the industry professionals believed in an incredible growth of drilling activity in North America’s largest shale patch. Analysts speculate that additional output of 500,000 barrels of oil daily would become a significant part (4%) of overall U.S. daily production. That is going to flatter oil and gasoline prices. Drilling permits in the Permian Basin are persistently growing, averaging approximately 210 at the beginning of April. Moreover, the permits trend is noticed as an all-time high as a total of 904 horizontal drilling permits were awarded last month. Nowadays, learning and analysing the current situation and predicting the future development become easier with early activity tracking, a new service recently launched by Rextag. Rextag's Pad Activity monitor (PAM) allows you to see well pad clearing, drilling operations, fracking crew deployment and completions with new data collected approximately every 2 days with the help of satellite imagery and artificial intelligence. While the increase in drilling will result in higher production, U.S. shale producers will have to overcome several hurdles including labor shortages and supply constraints.