Texas Oil and Gas Production is on decline

[dan_s]

Texas oil and gas production has taken a 'huge hit'

http://www.businessinsider.com/texas-oi ... own-2015-6

This is just the beginning. U.S. oil production is probably declining by 100,000 bbls per day per month and the decline will accelerate.

[dan_s]

According to oil service company Baker Hughes (BHI), the horizontal rig count fell by one in the week ending June 19, 2015—compared to the previous week’s count. It has fallen for 30 weeks in a row. In the 12 months ending June 19, the number of horizontal rigs in operation fell by 588, or 47%.

Currently, there are 662 active horizontal rigs—710 fewer than the record high of 1,372 on November 21, 2014. This represents a fall of 52%. Horizontal rig counts repeatedly set and broke new records throughout 2014. The number of vertical rigs in operation also fell by one to reach 100 last week. In the 12 months ending June 19, the number of vertical rigs fell by 280, or 74%.
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There are now more than 50,000 horizontal wells in the U.S. shale and tight oil plays. They are all on STEEP decline. Production from most horizontal shale wells comes on strong, but declines by more than 50% in the first year. By the 4th year on-line, most of these wells are producing less than 10% of their original production rate. IT IS IMPOSSIBLE FOR U.S. PRODUCTION NOT TO GO ON DECLINE WITH SO FEW RIGS DRILLING TODAY. BOTH GAS AND OIL PRODUCTION WILL BE ON DECLINE DURING THE 2ND HALF OF THIS YEAR.