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Author: <span>Shiloh</span>

Texas Oil and Gas Production Statistics for August 2019

November 8, 2019

Crude oil and natural gas production as reported to the Railroad Commission of Texas (RRC) for August 2019 came from 176,054 oil wells and 88,823 gas wells.

The RRC reports that from September 2018 to August 2019, total Texas reported production was 1.427 billion barrels of crude oil and 9.5 trillion cubic feet of total gas.

Crude oil production reported by the RRC is limited to oil produced from oil leases and does not include condensate, which is reported separately by the RRC……
 

Natural Gas Prices Down, Inventories Up As Winter Approaches

By Alex Mills

 

November 8, 2019

Record production of natural gas in Texas and throughout the United States has created lower natural gas prices for consumers, but it has many companies that produce natural gas struggling to avoid bankruptcy.

Once such company is Chesapeake Energy Corp., which is based in Oklahoma City, who was actively exploring in the Barnett Shale of North Texas some 10 years ago when gas prices were three time more than today. Chesapeake warned this week that low prices, which averaged $2.38 (down 11.5 percent), will contribute to a negative financial performance during the third quarter. Shares dropped 13 percent to $1.35 initially. Chesapeake was the second largest natural gas producer in the U.S. just a few years ago.

The Energy Information Administration (EIA) reports a growing share of U.S. natural gas production is associated natural gas (natural gas produced from oil wells), which is the result of increased crude oil production from low permeability, tight rock formations. In 2018, associated-dissolved natural gas production in the five major crude oil-producing regions was 12.0 billion cubic feet per day (Bcf/d), or about 37 percent of total natural gas production in these regions and about 12 percent of total U.S. natural gas production.

The Permian region, which spans parts of western Texas and eastern New Mexico, has the most associated gas production of the five crude oil-producing regions, according to EIA. The Permian region produced 5.8 Bcf/d of associated gas in 2018, accounting for 51 percent of the Permian’s natural gas production total and surpassing non-associated gas production in the region for the first time. Record-high crude oil production from the Permian brings with it large volumes of associated gas.

Associated natural gas production in the United States increased from 4.3 Bcf/d in 2006 to 15.0 Bcf/d in 2018.

Working natural gas inventories in the Lower 48 states totaled 3,519 billion cubic feet (Bcf) for the week ending October 11, 2019, according to EIA. This is the first week that Lower 48 states’ working gas inventories have exceeded the previous five-year average since Sept. 22, 2017……
 

Chesapeake Energy Drops 18%, Gas Prices Raise Worries About Company’s Ability to Continue

November 5, 2019

Chesapeake Energy shares were way down on Tuesday after the production company missed 3Q expectations, in what analysts call the “sharpest one day drop” in more than three years, while the company also warned that if natural gas prices continue to be “depressed,” there is “substantial doubt” that the company can continue as a “going concern.”…