Texas oil production holds steady

Though drilling permits are on the decline, Texas crude oil production held more or less steady month-to-month, state data for July show.

The Railroad Commission of Texas, the state's energy regulator, reports 2.45 million barrels of oil produced per day in July, the last full month for which the state has data. Year-on-year, total crude oil production is up 9.3 percent. Month-to-month, production is up about eight tenths of a percent.

The commission said Texas oil production came from 176,810 oil wells in the state.

In its latest report on rig activity, the state regulator said the number of drilling permits issued in Texas was down more than half from the same month last year to 864, of which 730 were for new wells. The rest were for re-entry into existing oil or gas wells.

Low crude oil prices mean energy companies have less capital to invest in exploration and production, a trend reflected in the fewer number of rigs active in U.S. shale basins.

In a revised forecast of total U.S. crude oil output, the U.S. Energy Information Administration said monthly production figures for January through March were lower by 23 percent. The largest downward revisions from EIA were for crude oil production in Texas.

The Dallas Federal Reserve said last week the Texas economy was getting weaker. In terms of labor, the state's oil and natural gas sector showed the largest contraction by far as energy companies cut staff and reduce spending in an era of low crude oil prices.