Texas oil production falls

Total crude oil production in Texas in March dropped by close to 2 percent from the previous month, data from the state energy regulator show.

The Railroad Commission of Texas, the state's energy regulator said preliminary data from March show crude oil production averaged 2.31 million barrels per day, down from the 2.34 million bpd reported in February.

A depressed crude oil market leaves energy companies with less money to invest in exploration and production. The market may be leveling off, however, as oil services company Baker Hughes reported the 373 active rigs in service in Texas for the week ending May 22 was unchanged from the previous week.

The industry is nevertheless sagging. The Texas commission said it issued a total 848 drilling permits in April, down 56 percent year-on-year.

A report this week from the Dallas Federal Reserve said general business activity in the state was at its lowest level since June 2009 and the outlook remained downbeat.

Texas is the No. 1 oil producer in the nation. The so-called Beige Book published by the Dallas Federal Reserve earlier this year said the low price for crude oil is hurting the state's oil sector.