Declining oil prices and already low
natural gas prices caused the drop of the Texas Petro Index ( TPI)
in June, the first fall in the recent 30 months, local media
reported on Wednesday.
The index, which has measured job numbers, rig activity, production totals, wells completed and other related figures across nearly two decades, dropped to 270.4 in June from 271.5 in May, which was the highest since rapid industry growth pushed it to a record high of 287.8 in October 2008, local English newspaper The Houston Chronicle quoted an economist for the Texas Alliance of Energy Producers as saying.
Oil prices have reduced to about 79.08 U.S. dollars in June from near 100 U.S. dollars in early 2012, and benchmark crude lost 1.72 U.S. dollars on Tuesday to end the day at 88.06 U.S. dollars per barrel.
Crude oil production in the lone star state is at its highest level since 1999, but the weakening global economy is pushing demand down, said Karr Ingham, adding that the monthly average value of oil and gas production in the state exceeded 9 billion U. S. dollars in 2008 but has been around 6 billion U.S. dollars during the most recent peak in the index.
In Texas, the number of active oil and gas rigs has dropped further in recent weeks to 900, the lowest level since September 2011.
(c) 2012 Xinhua News Agency - CEIS. Provided by ProQuest LLC. All rights Reserved.
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