RRC PRODUCTION STATISTICS AND ALLOWABLES FOR NOVEMBER 2010

AUSTIN ––The Texas average rig count as of Oct. 15 was 712, representing about 44 percent of all active land rigs in the United States. In the last 12 months, total Texas reported production was 350 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 August 2010 is 30,492,116 barrels of crude oil and 544,335,308 Mcf (thousand cubic feet) of gas well gas.

The Commission derives final production numbers by multiplying the preliminary August 2010 production totals of 28,590,826 barrels of crude oil and 504,949,265 Mcf of gas well gas by a production adjustment factor of 1.0665 for crude oil and 1.0780 for gas well gas. (These production totals do not include casinghead gas or condensate.)

Texas natural gas storage reported to the Commission for September 2010 was 393,036,566 Mcf compared to 444,800,943 Mcf in September 2009. The October 2010 gas storage estimate is 429,965,418 Mcf.

The Texas Railroad Commission’s Oil and Gas Division set initial November 2010 natural gas production allowables for prorated fields in the state to meet market demand of 13,297,938 Mcf (thousand cubic feet). In setting the initial November 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 November 2010 is reported.