High Oil Prices Good for Texas Budget

Source: Associated Press, April Castro (3/30/11)

"State's Rainy Day Fund set to get bigger. A lot bigger."

Higher oil prices may make consumers miserable, but unrest in the Middle East could mean a tax revenue windfall for Texas' tight budget.

The money is coming from Texas oil producers who have increased their rig counts to take advantage of prices that spiked in mid-February, when fighting in Libya squeezed off shipments that had supplied nearly 2% of the world's oil.

A percentage of the price from every barrel of oil produced in the state—now fetching about $104 each—goes into the state's Economic Stabilization Fund, commonly known as the Rainy Day Fund.

It's way too early to know how big the fund will get or whether the Legislature will overcome political opposition to using it. The Texas House will take up a proposal Thursday to tap the Rainy Day Fund to pay off $3.2 billion in state debt due in August.

But most experts agree: the fund will get bigger than current projections. A lot bigger. Based on an estimate of oil at $70 per barrel, the state comptroller forecast a $9.4 billion balance in the fund at the end of the next budget period. Prices have been well above that since last summer.

Option Partner to Continue Operations at Energy Firm's Texas Oil & Gas Project
Source: Streetwise Reports (01/23/2021)

The efforts will meet Torchlight Energy Resources' development requirements at Hazel.

Target Price Raised on Energy Firm Making 'Transformative Acquisition'
Source: Streetwise Reports (01/06/2021)

The terms and benefits of Earthstone Energy's purchase of an oil and gas company, an "eye-catching act of deal making," are presented in a ROTH Capital Partners report.

Energy Firm to Combine with Materials, Nanocomposites Company
Source: Streetwise Reports (12/16/2020)

Torchlight Energy Resources sees the transaction providing its shareholders "access to the multibillion-dollar markets that Metamaterial serves."

Oil & Gas Producer Reports on Thailand Operations
Source: Streetwise Reports (12/02/2020)

Pan Orient Energy Corp. reports on continuing drill operations in Thailand.

Energy Company Boosts Thailand Oil Production, Offers 'Low Risk Production Growth'
Source: Streetwise Reports (11/19/2020)

The highlights of Pan Orient Energy's third quarter are presented in a Mackie Research Capital Corp. report.

Texas Oil & Gas Firm to Sell Its Stake in Delaware Basin Project
Source: Streetwise Reports (11/18/2020)

For its interest, Torchlight Energy Resources is to receive $350,000.

Oil & Gas Firm Reports Q3 Operational, Financial Results
Source: Streetwise Reports (11/16/2020)

Pan Orient Energy and its joint venture partner continue producing and selling oil from its L53 Concession in Thailand, which are funding ongoing exploration work there.

Texas Oil & Gas Explorer Completes Fracking of Midland Basin Well
Source: Streetwise Reports (11/11/2020)

The next step for Torchlight Energy's well at Hazel is flowback, which is to start next week.

Altus Midstream Shares Flow Higher on Q3 Earnings and Plans for $1.50/Share Dividend in Q1/21
Source: Streetwise Reports (11/05/2020)

Shares of Altus Midstream Co. traded 170% higher after the firm reported Q3/20 financial results and announced plans to pay a quarterly dividend of $1.50 per share beginning in March 2021.