Texas oil and gas producers had one of the most successful years in the history of the state’s upstream sector in 2013, according to the Texas Alliance of Energy Producers. The Texas Petro Index — which is based on a comprehensive set of upstream economic indicators — reached an all-time high of 295 in December. The previous peak of 287.6 was achieved in September-October 2008. The growth was driven primarily by crude oil, but higher wellhead prices for natural gas contributed as well.
The new record is the apex of a growth cycle that began when the U.S. economy was still in the throes of the Great Recession.
“The statewide upstream oil and gas economy in July finally recovered fully from the nadir of December 2009,” said Karr Ingham, an economist who created the index. “Although most indicators of industry activity were higher at year-end 2013 compared to the prior year, the story of the year was crude oil production in Texas.”
Ingham said crude oil production in Texas grew by 120% between 2007 and 2013. Crude oil production last year totaled 856.8 million barrels — the highest statewide total since 1985, Ingham said. The estimated value of Texas-produced crude oil increased by 27% to $81 billion.
The number of Texans employed in oil and gas production increased by 6.4% between 2012 and 2013.
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