HOUSTON — An index that measures oil and gas activity in Texas has reached a record level, sustained by rising production and wellhead prices, according to its founder’s statement.
“The Texas Petro Index hit the record in February, maintained by daily crude production levels that soared to the state’s highest level since 1980,” says Karr Ingham, the economist who created the index.
February crude production in Texas reached an estimated 77.2 million barrels — up 22.4% from the same time period in 2013.
Ingham states that higher wellhead prices caused an even more dramatic increase in the value of the oil and gas produced in February, which rose by more than $2.85 billion from the previous year to $10.63 billion.
The Texas Petro Index was created in 1995 by the Texas Alliance of Energy Producers, a trade group of independent producers. It combines various metrics to provide an indication of the health and trajectory of oil and gas production in the state.
It is not unusual for the Texas Petro Index to hit record levels as the alliance regularly publicizes its milestones, but it does emphasize the extent to which the energy boom continues to play out in Texas.
The index was also bolstered by growing employment in the oil and gas industry within Texas. The sector averaged about 285,000 people on its payroll in February — a record figure up nearly 5% from just a year ago. Ingham states that figures from the Texas Workforce Commission indicate that the oil and gas industry is adding people at a significantly faster rate than it has in recent years.
