RRC PRODUCTION STATISTICS AND ALLOWABLES FOR JULY 2010

AUSTIN ––The Texas average rig count as of June 18, 2010, was 659, representing about 44 percent of all active land rigs in the United States. In the last 12 months, total Texas reported production was 346 million barrels of oil and 7.4 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 April 2010 is 29,517,190 barrels of crude oil and 552,754,655 Mcf (thousand cubic feet) of gas well gas.

The Commission derives final production numbers by multiplying the preliminary April 2010 production totals of 27,988,991 barrels of crude oil and 500,774,284 Mcf of gas well gas by a production adjustment factor of 1.0546 for crude oil and 1.1038 for gas well gas. (These production totals do not include casinghead gas or condensate.)

Texas natural gas storage reported to the Commission for May 2010 was 382,769,748 Mcf compared to 378,241,784 Mcf in May 2009. The June 2010 gas storage estimate is 394,235,442 Mcf.

The Texas Railroad Commission’s Oil and Gas Division set initial July 2010 natural gas production allowables for prorated fields in the state to meet market demand of 14,493,555 Mcf (thousand cubic feet). In setting the initial July 2010 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 July 2010 is reported.