.The Texas Energy Report

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.The Texas Energy Report

TXOGA President Todd Staples Appointed to Governor’s Strike Force to Open Texas: TXOGA

April 20, 2020

Texas Governor Governor Greg Abbott on Friday announced the Governor’s Strike Force to Open Texas and appointed Texas Oil & Gas Association (TXOGA) President Todd Staples as a Leader of the Energy Working Group. The Governor’s Strike Force to Open Texas will help to safely and strategically restart and revitalize all aspects of the Lone Star State — work, school, entertainment, and culture. The Strike Force and its Working Groups will provide input on potential additional openings of activities and services in Texas consistent with guidelines provided by the Centers for Disease Control and Prevention. The Governor will announce a revised plan for the state based on these initial recommendations on April 27…..
 

Texas Comptroller Glenn Hegar Issues Statement on Historic Drop in Oil Prices

April 20, 2020

“Today’s market activity was unprecedented and likely indicative of very limited storage capacity. May contracts traded well into negative territory as the market prepares to shift focus to June contracts. While down somewhat, June contracts traded in a relatively stable range. While this unprecedented volatility is concerning, the greater impact to Texas will come if demand remains historically low for a prolonged period of time and supply gluts continue to strain storage capacity…..
 

Oil Plunges Below $0: What Happened?

Storage is all leased up…So blame the oil ETF, USO maybe — it’s outlived its usefulness if it ever even had any…”This is temporary but it will be rough for a little while” — Texas representative

 

April 20, 2020

US oil stocks are just now settling for the day as investors watched oil prices plummet as the afternoon wore on, with WTI dropping below $0 per barrel to as far as -$37.63 a barrel before a little price recovery began…….
 

Texas Drilling Permits and Completions Statistics for March 2020: RRC

April 15, 2020

AUSTIN –– The Railroad Commission of Texas issued a total of 744 original drilling permits in March 2020 compared to 1,137 in March 2019. The March 2020 total includes 671 permits to drill new oil or gas wells, six to re-enter plugged well bores and 56 for re-completions of existing well bores.

The breakdown of well types for original drilling permits in March 2020 is 189 oil, 43 gas, 468 oil or gas, 40 injection, and four other permits.

In March 2020, Commission staff processed 1054 oil, 313 gas and 240 injection completions for new drills, re-entries and re-completions, compared to 493 oil, 127 gas, and 43 injection completions in March 2019.

Total well completions processed for 2020 year to date for new drills, re-entries and re-completions are 3,857, compared to 2469 recorded during the same time period in 2019…..
 

TXOGA Statement Before the RRC: Todd Staples

April 14, 2020

Testimony today to the Railroad Commission of Texas from the Texas Oil & Gas Association President Todd Staples:

“The Texas Oil & Gas Association (TXOGA) is our state’s oldest and largest oil and natural gas trade association whose membership includes every sector of the industry including exploration and production, transportation and storage, refining, and a host of service companies. Our Association strongly opposes the idea of the Texas Railroad Commission exercising proration of oil production, a position that was determined by a wide variety of members, who overwhelmingly oppose proration as a remedy to the current situation. We respect our members who may have a different view.

“Government control of Texas oil production is not the answer. The Texas market is already responding to low prices and depressed demand with greater efficiency than a government-controlled system can and with less damaging consequences than those we would experience from government-imposed controls. What we need is regulatory certainty, and a return to a more stable economic environment, not a fundamental shift in our market-based system. We do not want to give up on the very market-based system that unleashed innovation and technological advancements that have produced the most dynamic oil and natural gas industry in the world, headquartered right here in Texas.”