The oil and gas industry set another activity record last month — the fourth in a row — as the Texas Petro Index reached an historic high of 293.7. Even though natural gas production declined slightly this year (2%), crude oil increased an incredible 20.8% and employment is up almost 60,000 jobs over the previous record set in 2008.
“Crude oil-related activity has driven expansion of the upstream oil and gas economy in Texas for nearly three years,” said Karr Ingham, an economist for the Texas Alliance of Energy Producers who created the TPI. “But higher wellhead prices for natural gas have boosted the value of Texas-produced gas this year through October by 36.5%, so the contribution of the gas sector is beginning to show up in the TPI.”
Gas completions are up 48.1% to 4,594, and oil completions have increased 88.5% to reach 16,276.
A composite index based upon a comprehensive group of upstream economic indicators, the Texas Petro Index in October 2013 increased to a record 293.7, up 6.2% compared to the same month in 2012. Before the current economic expansion, the TPI’s previous all-time high of 287.6 occurred in September and October 2008, after which the TPI declined to 188.5 in December 2009 before embarking upon the current growth cycle.
-Alex Mills, Texas Alliance of Energy Producers