Texas oil industry on the rise

A new report indicates that oil production in Texas continues to rise as production elsewhere in the country seems to have leveled off.

The latest information from the U.S. Energy Information Administration (EIA), which covers this past May, shows that U.S. oil production dropped 0.5 percent, or about 50,000 barrels per day, over April's numbers to an average of 9.7 million barrels per day. 

However, another report from the Texas Alliance of Energy Producers reports that crude oil production in Texas increased 16 percent in May when compared to the same month last year, rising to a total of 107 million barrels from 92 million barrels.

Increased production brings added reserves and lower gas prices for consumers. As such, the EIA changed its forecasts for domestic oil consumption, saying that demand will increase, likely due to increased highway travel, and American gas use should exceed 9 million barrels per day for the first time since 2007.

Despite the demand, higher numbers of reserves are typically bad signs for producers. According to the Tyler Morning Telegraph, oil prices are hovering around $50 per barrel, which in turn is leading to a drop in oil rigs.

Though this could lead to an overall decline in production, the EIA is remaining positive on the year as a whole.

"While U.S. crude oil production is expected to decline over the months ahead, total output in 2015 is on track to be the highest in 45 years," EIA Administrator Adam Sieminski said in a statement.

This is due largely to increased production out of states like Texas where new techniques and technologies are able to tap into shale fields and extract oil that was previously unobtainable.