RRC PRODUCTION STATISTICS AND ALLOWABLES FOR SEPTEMBER 2010

AUSTIN ––The Texas average rig count as of Aug. 13 was 717, representing about 45 percent of all active land rigs in the United States. In the last 12 months, total Texas reported production was 347 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 June 2010 is 29,309,835 barrels of crude oil and 539,100,214 Mcf (thousand cubic feet) of gas well gas.

The Commission derives final production numbers by multiplying the preliminary June 2010 production totals of 27,407,738 barrels of crude oil and 498,428,452 Mcf of gas well gas by a production adjustment factor of 1.0694 for crude oil and 1.0816 for gas well gas. (These production totals do not include casinghead gas or condensate.)

Texas natural gas storage reported to the Commission for July 2010 was 375,677,968 Mcf compared to 419,455,991 Mcf in July 2009. The September 2010 gas storage estimate is 345,763,583 Mcf.

The Texas Railroad Commission’s Oil and Gas Division set initial September 2010 natural gas production allowables for prorated fields in the state to meet market demand of 15,843,647 Mcf (thousand cubic feet). In setting the initial September 2010 allowables, the Commission used historical production figures from previous months, producers’ demand forecasts for the coming month, and adjusted the figures based on we