Texas Petro Index grew in October for the seventh consecutive month with the largest increase of the current expansion cycle. TPI was 158.9 in September and 164.3 in October (base 100 January 1995). That’s an increase of 25.2 percent since pandemic low of 131.2 in January 2021. Petroleum economist Karr Ingham of Texas Alliance of Energy Producers said, “A sharp increase in crude oil prices helped push the TPI upward in October with posted WTI prices averaging $77 for the month, the highest monthly average crude oil price since October 2014… Natural gas prices are now the highest since 2010.”
Rig count continues a steady climb, and crude oil production in Texas is moving toward 5 million barrels per day (estimated 4.97 million b/d in October). Ingham said the record for Texas crude oil production is 5.4 million b/d in March 2020, which could be eclipsed in 2022. He added, “Permian production is growing faster than Texas statewide production, which is growing faster than U.S. national production… Texas share of U.S. total production is likely to grow higher than its current 43-to-44 percent in 2022.”