After 23 months of declines, the Texas Petro Index from Texas Alliance of Energy Producers recorded a modest increase in February to 138.8 from 131.5 in January. The alliance said it marked “possible ending of contraction that began pre-covid, but then worsened in 2020 as a result of covid and the corresponding economic upheaval. Even though prices and the rig count have been improving for several months, the primary causes for the February increase are the impact of the February winter weather on natural gas prices and the value of gas produced in the state” ($20 billion in February alone) despite a decline in production volume.
Alliance added, “The index (base 100 January 1995, high 314 November 2014, 213.2 February 2019 before current decline began) was headed for a turnaround in 2021 thanks to improving crude oil prices, rising rig count, and modest industry employment increases that will gain momentum in the coming months.”