Register with us today

and in less than 60 seconds continue your access to:Latest news headlinesAnalytical topics and featuresCommodities videos, podcast & blogsSample market prices & dataSpecial reportsSubscriber notes & daily commodity email alerts

Already have an account?

Log in to register

Forgot Password

Please Note: Platts Market Center subscribers can only reset passwords via the Platts Market Center

Enter your Email ID below and we will send you an email with your password.


  • Email Address* Please enter email address.

If you are a premium subscriber, we are unable to send you your password for security reasons. Please contact the Client Services team.

If you are a Platts Market Center subscriber, to reset your password go to the Platts Market Center to reset your password.

In this list
Oil

Texas not seeing big jump in abandoned wells: state official

Oil | Crude Oil

Oil-state senators tell Trump to turn up pressure on Saudi/Russian price war

Oil

Platts Market Data – Oil

Capital Markets | Commodities | Oil | Crude Oil | Refined Products | Fuel Oil | Gasoline | Jet Fuel | Naphtha | Marine Fuels | Equities | Financial Services | Banking | Non-banks | Private Markets

North American Crude Oil Summit, 3rd annual

Oil | Crude Oil | Refined Products

Crude oil futures climb ahead of Trump's meeting with US oil leaders

Texas not seeing big jump in abandoned wells: state official

Highlights

Industry players, upstream and downstream markets, refineries, midstream transportation and financial reports

Supply and demand trends, government actions, exploration and technology

Daily futures summary

Weekly API statistics, and much more

Washington — The oil market downturn has not caused a substantial increase in abandoned oil and gas wells in Texas, a top state oil and gas regulator said Tuesday.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

"We're monitoring that issue closely, but we have not seen a significant increase in that number of high risk wells," said Lori Wrotenbery, director of the Railroad Commission of Texas' oil and gas division, during a panel discussion at the US Energy Information Administration's annual conference.

Texas has roughly 435,900 drilled wells, including 323,500 active wells, including about 280,000 wells producing oil or gas and several service, injection and disposal wells, she said Tuesday.

There are about 112,400 inactive wells, which Wrotenbery said was in line with the average over the past 15 years of about 110,000 inactive wells.

Article Continues below...

State officials have identified about 9,500 wells which have either been abandoned or are at risk of being abandoned by operators, she said. About one-third of these, however, could be operators who have been delinquent in filings with the commission and could be remedied shortly, she added.

Texas produced nearly 2.49 million b/d of crude oil in April, about 520,000 b/d less than what was produced in April 2015, according to Railroad Commission data.

Many US producers, including operators in the Permian and Eagle Ford plays, see breakeven prices at just above $30/b, said Mine Yucel, director of research with the Federal Reserve Bank of Dallas, during the EIA panel. But producers likely will not start drilling new wells until WTI prices average above $50/b, Yucel said.

During a panel at the conference Monday, Lars Eirik Nicolaisen, a partner with Rystad Energy, said the amount of current global capital spending is not enough to materially grow oil production going forward and that a supply crash is likely without a jump to $70/b in the near future.

In its Short-Term Energy Outlook Tuesday, EIA said it expects WTI to average $43.57/b in 2016 and rise to $52.15/b in 2017.

--Brian Scheid, brian.scheid@spglobal.com

--Edited by Lisa Miller, lisa.miller@spglobal.com