TEXAS is on track to complete fewer oil and gas wells this year, the state regulator said in a statement, as companies tighten spending to adjust to lower oil prices and a push from investors to focus on returns.
The state’s oil and gas regulator has processed 8,629 well completions so far this year, marking nearly a 16% decline versus the same period last year, the Railroad Commission of Texas said.
Texas is the largest oil producing state in the country and helped propel US output to a weekly record of nearly 13 million bpd last month, according to the US Energy Information Administration (EIA).
US oil prices have hovered below $60 a barrel for most of the year, prompting many energy firms to cut staff and reduce budgets, even as major oil exporting countries have curbed production. Last week, members of the Organization of the Petroleum Exporting Countries (OPEC) and allies agreed to deepen those cuts by 500,000 bpd to 1.7 million barrels per day through March 2020.