Total oil and natural gas production per day has rolled over and started to decline in Texas, according to data recently released by the Texas Railroad Commission.
I think the EIA may have been over-estimating U.S. oil production for months. If Texas oil production is on decline then I see little chance that total U.S. production is not on decline. IMO it is hard to believe that the sharp decline in active drilling rigs from 1H 2015 to 1H 2016 did not cause more of decline in U.S. production than EIA has been reporting. The active rig count bottomed in Q2 2016, which should have caused lower production in Q3.
Read this: http://www.oilandgas360.com/texas-aug-2 ... S_Campaign
The weekly production volumes reported by EIA are nothing more than estimates. There numbers have been proven wrong for years, but Wall Street takes them as gospel truth because it is all we have to work with. However, actuals are not know for several months later when the Texas Railroad Commission and other state agencies report actuals. Operators have 30 days after month end to report their production to the state.
Texas Oil Production on decline
Texas Oil Production on decline
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group