Production Adjustment Factor: An Estimate of Monthly Oil and Gas Production
Updated: 09/21/09
Each month the Commission reports preliminary Texas production of crude oil and gas well gas based on producer filings of Form PR. Preliminary production totals are key indicators for many industry analysts, who use the data to forecast U. S. oil and natural gas supply and demand and to measure industry activity and performance.
The Commission recognizes, however, that this preliminary snapshot of Texas monthly production underestimates the final and complete total. In subsequent months of producer filings, the Commission receives many corrected or delinquent production reports.
The Commission may need to resolve problems in data collection, format, or processing that again result in subsequent upward revisions to monthly production totals. Company mergers and acquisitions may also delay timely producer filings. This ongoing process of reconciling operator data typically pushes the actual production totals higher.
In an effort to estimate actual monthly production more accurately, the Commission will calculate a supplemental production adjustment factor each month to be applied to the preliminary, reported statewide total of oil and gas well gas. The production adjustment factor, multiplied by the preliminary production total, is the Commission's estimate of the expected, final statewide production for a given month.
The factor will not be applied to either the reported condensate or casinghead gas production. Because the Commission reports production in various ways (for example, by county and RRC district), it would be impractical to apply any adjustment factor to individual districts, leases, or wells. The factor therefore applies only to statewide totals.
For the most recent month of preliminary, reported production, the production adjustment factor is:
| Month reported: 07/2009 | Preliminary Production | Production Adjustment Factor |
|---|---|---|
| Oil | 27,292,609 (Bbls.) | x 1.0764 |
| Gas Well Gas | 512,743,872 (Mcf) | x 1.1845 |