The worrisome natural gas production has an answer.

by: Michael McAllister

The major drop in natural gas production from Texas that I cited on Tuesday is a little (a lot?) misleading.  First, I apologize for the posting but when something of interest pops up I like to post it.  In the future, I will try to dig deeper especially when the data seems really out of whack as the 7% difference was.   

I would also like to thank molon labe for drawing attention to the RRC's data aggregation practices which prodded me to find answers.

The Head of Statistics for the RRC, Kathy Way, told me that starting in January of this year a new  form was given to the operators to document their production.  It seems that the new document has been troublesome for some and a number of forms have had to be rejected. 

Kathy believes that the rejections will subside as operators become more accustomed to the form's style.   In the meantime, I do not believe it would be prudent to rely on the RRC's data.  Lets hope they will revise the 1Q 2005 numbers or we could see a big pop next year.