The April Texas Petro Index (TPI) Report was recently released, and it was good news for the Texas oil industry. According to an economist who analyzed the report, the TPI in April was 164.3, which he said was up by 2 percent from April in 2016. This is after several months of consistent positive movement. For example, February’s TPI was 4.6 higher than January and nearly 10 higher than November 2016.
The economist said that cutback efforts between global oil suppliers like OPEC and Russia, have enabled Texas oil producers to export more to fill the demand. Although the Texas oil industry has quite a way to go before it reaches the 313.5 TPI number that it reached in November 2015, this is good news for oil companies and frac sand suppliers like Vista Sand that were hoping for continued growth.
What Were Some of the Highlights of the Report?
- Crude oil production was 99.55 million barrels, which is 2.3 percent higher. The value of crude oil was up almost 28 percent to 4.7 billion.
- Natural gas production was down almost 5 percent, but the total value of natural gas increased 44 percent to $1.9 billion. The increase in value was due to higher per-unit prices.
- Working rig count was up 425. This is 229 more than last year’s rig count.
- Drilling permits were 33.2 percent this April from last April.
- More than 204,000 Texas are employed in upstream jobs in the industry, which is higher than April 2016.