Rider Element E: Consider the degree to which oil and condensate production encourage natural gas extraction.
For natural gas wells being drilled, current price dynamics (i.e., lower natural gas prices) and evolving technology appear to have placed the drilling focus on liquids production. At the current time, drilling for oil is primary with natural gas exploration a secondary interest. According to Baker Hughes, Inc., during the week of October 31, 2014, 901 drilling rigs were operating in Texas. Of those, 79 were drilling for natural gas. Drilling for natural gas in Texas tends to be in areas which are heavy in natural gas liquids and/or with expected high condensate volumes taking advantage of the price differential between oil and natural gas.
The following table on page 18 illustrates the relationship between oil and natural gas well production, including casinghead gas and condensate. It appears to be not so much a situation of oil and condensate production encouraging natural gas production, but one where oil exploration (much of this in the Eagle Ford Shale) has resulted in wells producing — in addition to crude oil — other products, such as casinghead gas (or natural gas from an oil well).
The table clearly shows that as Texas oil production doubled between fiscal 2011 and 2014, the production of casinghead gas did as well going from approximately 0.8 billion MCF to almost 1.8 billion MCF. And the table also shows that, during this same time period, condensate (light oil) from natural gas wells ticked up considerably from about 67 million barrels statewide to over 136 million.
Appendix D includes a series of Texas Railroad Commission graphs for the major oil and natural gas fields in the state. In the period from 2008 to 2013 (annual totals) and 2014 through July, production from the Eagle Ford Shale exhibited extremely rapid growth; the Permian Basin showed steady growth. In the Barnett Shale play, from 2000 through 2013 (annual totals) and 2014 through July, the production levels for oil and natural gas showed growth and declines, while the growth of condensate production continued. In the Haynesville Shale play, from 2005 through 2013 (annual totals) and 2014 through June, there was no significant oil production. Natural gas production peaked in 2012 and declined in 2013, but may be rebounding in 2014. Condensate production in the Haynesville continued to grow.
|Oil Wells Statewide||Natural Gas Wells Statewide||Eagle Ford Shale Wells|
|Fiscal Year||Oil Production (Barrels)||Casinghead Gas Production (MCF)||Ratio of Casing- |
head Gas to Oil
|Natural Gas Production (MCF)||Condensate Production (BBL)||Ratio of Natural |
Gas to Condensate Production
|Casinghead Gas Production (MCF)||Natural Gas Production (MCF)||Condensate Production (BBL)|
Source: Texas Railroad Commission Production Data
In 2015, the Texas Legislature passed House Bill 855, which requires state agencies to publish a list of the three most commonly used Web browsers on their websites. The Texas Comptroller’s most commonly used Web browsers are Google Chrome, Microsoft Internet Explorer and Apple Safari.