Despite the market downturn, a Texas regulator said oil and gas production in the shale-rich state continued to grow because operators are more efficient.

"Texas is stronger today because of oil and gas shale development," David Porter, chairman of the regulator Texas Railroad Commission, told those gathered for an annual executive oil conference in Midland, Texas.

Texas is the top producer in the nation. Total oil production for August, the last full month for which data are available, was roughly 2.8 million barrels per day, more than 10 percent lower than for January. Total gas production of 20.8 million cubic feet per day for August was about 13 percent less than January.

Energy companies are spending less on exploration and production because of capital starvation during an era of historically low crude oil prices, which are down about 12 percent from the start of the year.

Oil services company Baker Hughes reported 340 rigs actively exploring for or producing oil and natural gas for the week ending Nov. 6. That's down 62 percent from the same week last year.

In a report on drilling productivity, however, the U.S. Energy Information Administration said some of the Texas shale basins remained resilient despite the downturn. Of the shale reserves in the nation that account for the bulk of new U.S. production, only the Permian shale in western Texas is expected to show an increase in output from November to December.

"We've maintained record production levels -- in the face of major challenges -- here in Texas because industry has become more innovative and more efficient, and that is an accomplishment to be very proud of," Porter said.

U.S. shale player Pioneer plans no more rigs
Houston (UPI) Nov 11, 2015 - U.S. shale company Pioneer Resources told investors in Houston mid-term gains were expected in production, but no new rigs were planned for 2015.

Pioneer last week reported a profit for the third quarter of $646 million, compared with $374 million year-on-year. That contrasts to market peers, who reported weak quarterly results as lower crude oil prices continue to dig into corporate profits.

In a presentation to investors, Chairman and Chief Executive Officer Scott Sheffield said eight rigs were added in the Spraberry/Wolfcamp shale basin in Texas between July and October.

"No further rig additions planned for 2015," his presentation stated.

That's a reversal from statements made during the second quarter, when Sheffield said the company was "putting rigs back to work." Two rig additions were planned per month for the second half of the year in the Texas shale.

Sheffield said in his second quarter statements activity for 2016 would be on par with operations from before the market began its slump in mid-2014.

In the investor presentation, the company said it was expected to deliver reserves as planned using fewer rigs because of efficiency gains in the Spraberry/Wolfcamp shale.

An annual production increase of 15 percent is expected through 2018, the company said.

Total production of oil and gas during the third quarter for Pioneer was 210,711 barrels of oil equivalent per day, a 13 percent increase from third quarter 2014.