Texas Petro Index by Texas Alliance of Energy Producers gained again in June for the third straight month and fourth time in six months of 2021. The index prepared by economist Karr Ingham grew to 147.2 in June after 143.1 in May, 139.7 in April and 138.3 in March. The index started 2021 with 131.5 in January (base 100.0 in January 1995 with all-time high of 314.0 in November 2014). Ingham said, “The Texas upstream oil and gas economy is on the mend following a double barrel contraction in 2019 and 2020 that took the rig count to historic low levels and eliminated tens of thousands of industry jobs.”
WTI crude oil prices averaged $67.39 per barrel in June – up from a low of $14.68 in April 2020. Natural gas prices averaged $2.99/mmbtu compared to $1.07 in March 2020. Rig count improved to 219 in June compared to 105 in May 2020. More than 4,000 original drilling permits have been issued this year through June compared to 3,793 in the first six months of 2020. Crude oil production in Texas averaged 4.82 million b/d in June after the state lost 1 million b/d from March to May 2020. And direct upstream employment in Texas climbed back above 160,000 in June. Operators restarted wells that were shut down during covid19, and wells that were previously drilled but not completed are now being completed.