TAEP's Texas Petro Index sets record in July

The Texas Petro Index (TPI), a composite index based upon a comprehensive group of upstream economic indicators, increased to a record 287.7 in July, up 4.4% from the same month in 2012, and breaking its previous all-time high of 287.6 occurred in 2008. The index, which was released by the Texas Alliance of Energy Producers (TAEP), rose to the record amid surges in crude oil prices, drilling permits, and industry employment, reported the state association of independent oil and gas producers.

"The monthly crude oil price rose by more than $9/bbl in July, to average more than $100/bbl for the first time since March 2012," said Karr Ingham, the economist who created the TPI for TAEP. "The number of original drilling permits issued was up by more than 18% in July compared to July 2012 and oil and gas industry employment was up by more than 6%."

Texas crude oil production in July totaled an estimated 67.7 million bbl, up 14.1% from a year ago. Crude oil wellhead prices averaged $101.27/bbl, up 20% from last July. Production gains and higher wellhead prices combined to boost the value of Texas-produced crude oil by 36.8% to nearly $6.86 billion.

Natural gas production in Texas was estimated at nearly 634.4 bcf in July, down 6.3% year-over-year. Natural gas prices averaged $3.63/Mcf, up 33.7% from a year earlier. Higher wellhead prices more than offset the production decline to boost the value of Texas produced gas to more than $2.3 billion, 25.3% more than in July 2012.

Baker Hughes Inc.'s count of active drilling rigs in Texas averaged 841 in July, down 69 rigs from the 910 drilling in July 2012.

The oil and gas industry payroll number was estimated to reach a record 280,500, according to statistical methods based upon Texas Workforce Commission estimates revised in March.