Texas Petro Index increased for the eighth straight month in November to 169.1. The index, prepared by petroleum economist Karr Ingham for Texas Alliance of Energy Producers (base 100 in January 1995, peak 314.0 in November 2014), grew from 164.3 in October and 138.3 in March when the current expansion began. TPI is up 24 percent from 136.7 in November 2020. Ingham said activities continue to increase post-pandemic although they are nowhere near record levels. He added, “The rig count is climbing, but is an astounding 600+ rigs below the number of rigs at work in late 2014. Drilling permits are also on the rise.”
Industry employment improved to about 173,000 in November, an increase of nearly 9 percent from November 2020. That means about 18,600 of the more than 83,000 jobs lost the last two years have been recovered.
Permian Basin crude oil production is moving into record levels and “very likely did so in December 2021,” Ingham said, “and if not, it will happen in January.” Statewide production in Texas also is increasing, but at a slightly slower pace. Ingham said Texas crude oil production is on the verge of surpassing 5 million barrels per day compared to the record 5.4 million b/d established in early 2020.