Texas Petro Index posted its fifth straight monthly increase in August 2021 and its first year-over-year increase since June 2019. The index from economist Karr Ingham of Texas Alliance of Energy Producers reached 154.1 in August 2021 after 150.5 in July 2021 and 148.9 in August 2020. Ingham explained, “The rig count and industry employment remain modestly but steadily on the rise in response to higher crude oil prices and the highest prices for natural gas since 2014.”
Ingham added, “Crude oil production has increased as well, but neither U.S. national nor Texas crude oil production has reached the record levels established pre-pandemic… The disparity between the rate of demand increase and the slower pace of supply increase is clearly driving prices higher. Those higher prices will continue to push activity levels upward in Texas though a lack of development capital has clearly constrained supply growth up to this point.”
The index began with base 100.0 in January 1995, reached peak of 314.0 in November 2014 and fell to 131.2 in January 2021.