Texas Petroleum Index on the Rise Back to Blog
Texas oil production rose to new levels in the second quarter of 2014, according to an economist for the Texas Alliance of Energy Producers, Karr Ingham. His work regarding the Texas Petro Index (TPI), hit a record-high of 308.4 in June. The TPI is a composite index that is derived from a comprehensive set of upstream indicators, including the price per barrel of oil, rig count, drilling permits and completions, oil and gas production volume and other indicators. It provides a picture of the overall energy well being in Texas. The June 2014, the TPI is 7.4 percent higher than it was in June 2013. Compared with the January 1995 base of 100 percent, the June 2014 TPI is up 213.7 percent. Texas oil production has been increasing for last 54 months, sending production in the state up 180 percent during that period. Texas is now in a position to beat its all-time 1972 production record within two years, Ingham said. The continued strength in energy so far in 2014, driven in part by geopolitics in other regions, is stronger than expected after the robust year the industry had in 2013, Ingham said in a July 25 press release. Oil prices have been pushed above the $100-barrel mark, and have kept the oil and gas industry’s upward momentum going. The price of crude oil would probably be even higher were it not for restrictions on exporting crude oil and liquefied natural gas.
Does the geo-political landscape change if the United States exports significant quantities of oil and natural gas? We think so. It appears European governments are slow to react to Russian military incursions primarily due to the economic threat of Russia’s discontinuance of energy exports throughout that region. Should the U.S. put itself in a position of supplying democratic governments with reliable and secure energy supplies, those governments would have a better chance to survive without Russian oil & gas.