Energy Report: third wildcat well approved in Presidio County
June 29th, 2017 under Top Stories
By NICK WINCHESTER
WEST TEXAS — The Texas Railroad Commission approved Presidio County’s third wildcat well of the year this week. Houston-based Helios Operating submitted the application for their third well in the area on June 16. The well, approved Monday, June 26, is located in Northern Presidio County, 39 miles south of Van Horn.
In other energy news, lower oil prices combined with rising oilfield costs may soon cause problems for West Texas drillers. Crude prices have fallen to a level that makes drilling most oil wells in the Permian Basin too expensive as service costs continue to rise in West Texas, according the Houston Chronicle.
The U.S. oilrig count rose by 11 to 758 this week, according to oilfield analysts Baker Hughes. Despite a nationwide rise for the 23rd week in a row, Texas did not increase its total rig count, which remains at 460. This is up 266 from a year ago.
The average retail gasoline prices in Texas have fallen 4.3 cents per gallon in the past week, averaging $2.06 a gallon yesterday, according to GasBuddy. This compares with the national average that has fallen 2.6 cents per gallon in the last week to $2.25 per gallon.
“Michigan, Indiana, Ohio, Kentucky and Illinois saw prices rise slightly due only to the fact that gas prices had fallen so significantly that stations in those areas were selling under their cost, prompting an adjustment. For the rest of the country, the downward momentum has continued and may do so again this week, so long as there’s no sudden reversal in the price of crude oil. It’s amazing we’re staring at some of the cheapest prices of the year as the holiday comes into view,” DeHaan said.
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