.The Texas Energy Report

16 Years Bringing You News from the Energy Capital of the Planet
 
.The Texas Energy Report

Railroad Commission Continues Working to Improve Regulation of Oil and Gas Industry: RRC

August 13, 2020

The Railroad Commission has an enormous responsibility shepherding Texas’ oil and gas industry, which is critical to our daily lives and economy.

In its role regulating energy production and ensuring natural resources are extracted responsibly, the agency has been taking advantage of operational and technological efficiencies to achieve its goals.

Last week, RRC commissioners took actions to further address flaring with proposed revisions to the Application for Exception to Statewide Rule 32, while the Commission creates better reporting requirements to record for how much each flare releases and an integrated online system connecting the work of permit writers, operators, and agency field staff.

TIPRO Commends Trump Administration for Adopting Reasonable Air Quality Standards for Oil and Natural Gas: News Release

August 13, 2020

Austin, Texas – Today, the U.S. Environmental Protection Agency (EPA) released final regulations revising the New Source Performance Standards (NSPS) for the oil and natural gas industry, which are projected to result in net benefits of $750 to $850 million dollars over the period lasting from 2021 to 2030, with the annualized equivalent being roughly $100 million a year in savings from unnecessary regulatory costs. The Texas Independent Producers & Royalty Owners Association (TIPRO) has been an active participant in the rulemakings and associated litigation since the EPA announced planned changes to the NSPS for the Oil and Gas Sector in August 2011. The following statement regarding today’s rule change can be attributed to Ed Longanecker, president of TIPRO:

“TIPRO applauds the Trump Administration for adopting reasonable air standards that will protect the environment while also reducing regulatory burdens threatening to stifle domestic energy production. The EPA’s final revisions to the NSPS regulations for the oil and natural gas industry represent a more balanced approach, will remove unnecessary regulatory requirements, save the industry millions in compliance costs and strongly support ongoing efforts to lower air emissions in the United States.

The previous NSPS was among the most overreaching regulations targeting the U.S. oil and natural gas industry to be promulgated under the previous administration, without appropriate justification for such policies. Since the EPA updated its NSPS and permitting rules in 2016 for new, reconstructed and modified oil and gas sources, TIPRO has lobbied against the disproportionate impact of the rules on smaller U.S. oil and natural gas producers including operators of marginal oil and gas wells….
 

Increase In Economic Activity Key To Oil, Gas Recovery

By Alex Mills

 

August 13, 2020

The global COVID-19 pandemic has created an incredible economic decline in Texas, the U.S. and throughout the world. However, two new reports this week indicated the possibility of a reversal.

The Energy Information Administration (EIA) stated in its Short-Term Energy Outlook on Tuesday even though there remains a high level of uncertainty in many economic indicators, there is some optimism that economic activity and energy demand has increased.

“EIA expects oil consumption will generally rise through the end of 2021,” the reported stated. Oil demand rose from 17.9 million barrels per day (b/d) to 19.4 million b/d.

EIA estimates global liquid fuels inventories rose 6.4 million barrels b/d during the first half of 2020, but that increase will decline during the last half of the year because of increased activity and a decline in production. In the U.S., crude oil inventories have declined from a record high of 540 million barrels on June 19 to 514 million barrels (5 percent) this week. Global liquid fuels production declined 8.6 million b/d year over year to 91.8 million b/d, and U.S. crude oil production has dropped to 11.3 million b/d from 12.2 million b/d average in 2019.

The second report comes from a survey of 400-plus business owners in Texas by the Federal Reserve Bank of Dallas that believe economic activity will be stronger during the next six months resulting in better earnings. “This optimism, coupled with a downward trend in new COVID-19 infections in Texas in recent weeks, gives hope that a more sure-footed rebound may be on the horizon,” the Dallas fed said….
 

Texas Drilling Permits and Completions Statistics for July 2020: RRC

August 8, 2020

AUSTIN –– The Railroad Commission of Texas issued a total of 351 original drilling permits in July 2020 compared to 912 in July 2019. The July 2020 total includes 286 permits to drill new oil or gas wells, six to re-enter plugged well bores and 40 for re-completions of existing well bores.

The breakdown of well types for original drilling permits in July 2020 is 70 oil, 27 gas, 232 oil or gas, 9 injection, and 13 other permits.

In July 2020, Commission staff processed 1,125 oil, 211 gas and 367 injection completions for new drills, re-entries and re-completions, compared to 499 oil, 156 gas, and 44 injection completions in July 2019.

Total well completions processed for 2020 year to date for new drills, re-entries and re-completions are 9,510 compared to 5,749 recorded during the same period in 2019…..