RRC PRODUCTION STATISTICS AND ALLOWABLES FOR DECEMBER 2010

AUSTIN –– The Texas average rig count as of Nov. 12, 2010, was 726, representing about 44 percent of all active land rigs in the United States. In the last 12 months, total Texas reported production was 351 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 September 2010 is 29,738,198 barrels of crude oil and 529,429,553 Mcf (thousand cubic feet) of gas well gas.

The Commission derives final production numbers by multiplying the preliminary September 2010 production totals of 28,153,714 barrels of crude oil and 488,629,029 Mcf of gas well gas by a production adjustment factor of 1.0563 for crude oil and 1.0835 for gas well gas. (These production totals do not include casinghead gas or condensate.)

Texas natural gas storage reported to the Commission for October 2010 was 455,184,728 Mcf compared to 458,359,717 Mcf in October 2009. The November 2010 gas storage estimate is 463,200,224 Mcf.

The Texas Railroad Commission’s Oil and Gas Division set initial December 2010 natural gas production allowables for prorated fields in the state to meet market demand of 13,887,404 Mcf (thousand cubic feet). In setting the initial December 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 December 2010 is reported.