Monday, January 27, 2014

Natural Gas Production Reporting in Texas

Skeptics of the shale gas revolution sometimes reference Texas Railroad Commission production reports to support the argument that gas production is in decline.  There is a large discrepancy between EIA reported production volumes and state reporting.  But the methodology is quite different, and the EIA uses a correction factor for more recent months to account for unreported volumes.  The RRC does not, and the result is the appearance of declining production when in fact production is growing.

As of today, here are the volumes reported by each agency.  Over time, the same thing always happens.  Late production reports add to the volumes reported by the RRC,and the tailing curve rises to track the EIA number.