RRC PRODUCTION STATISTICS AND ALLOWABLES FOR JANUARY 2012

AUSTIN ––The Texas average rig count as of Dec. 16 was 916, representing about 47 percent of all active land rigs in the United States. In the last 12 months, total Texas reported production was 381 million barrels of oil and 7.1 trillion cubic feet of natural gas.

The Commission’s estimated final production for October 2011 is 33,773,405 barrels of crude oil and 509,884,053 Mcf (thousand cubic feet) of gas well gas.

The Commission derives final production numbers by multiplying the preliminary October 2011 production totals of 30,894,077 barrels of crude oil and 457,911,139 Mcf of gas well gas by a production adjustment factor of 1.0932 for crude oil and 1.1135 for gas well gas. (These production totals do not include casinghead gas or condensate.)

Texas natural gas storage reported to the Commission for November 2011 was 443,491,626 Mcf compared to 474,188,896 Mcf in November 2010. The December 2011 gas storage estimate is 422,268,502 Mcf.

The Texas Railroad Commission’s Oil and Gas Division set initial January 2012 natural gas production allowables for prorated fields in the state to meet market demand of 10,543,082 Mcf (thousand cubic feet). In setting the initial January 2012 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 2012 is reported.

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