Texas Petro Index, a monthly tracking measure for the state’s upstream oil and gas exploration and production economy, declined for the 20th consecutive month in October to 139.9 from a revised 144.0 in September and 196.8 (down 29 percent) in October 2019. Base 100.0 was set in January 1995. Economist Karr Ingham, who prepares the index, said it continues to “reflect deep year-over-year declines in most components of the index… However, most have improved compared to the pandemic low points earlier in the year, including crude oil prices, rig count and now industry employment.” The current 20-month decline started in March 2019 when the index was 212.4. Peak of 313.9 was November 2014.
Crude oil posted prices averaged $35.42 in October – down by 30 percent compared to October 2019. Baker Hughes’ rig count for Texas averaged 122 in October – up from 108 in September but down by 71 percent compared to October 2019. Railroad Commission of Texas issued 5,427 original drilling permits in first 10 months of 2020 – decline of 45 percent compared to last year. Estimated daily crude production in Texas was just under 4.6 million b/d in October – down from 4.63 million b/d in September and a peak of 5.4 million b/d in March. Total oil and gas employment in Texas of 149,780 in October was down 30.5 percent from 215,580 in October 2019.