Nearly half of all land rigs in service in the United States are in Texas, where a state regulator said oil production increased 5 percent from January.

The Railroad Commission of Texas, the state's energy regulator, said preliminary data from February show crude oil production averaged 2.34 million barrels per day. That's an increase of 5.2 percent, or 117,550 barrels, from January and 17 percent higher than February 2014.

Texas is the No. 1 oil producer in the nation. The so-called Beige Book published by the Dallas Federal Reserve said the low price for crude oil is hurting the state's oil sector. While most firms surveyed by the bank said they'd be able to weather the storm, the slump should continue through the year.

The RRC said the average rig count in Texas was 411 for the week ending April 17, which represents about 45 percent of all active land rigs in the country. The Beige Book last week reported rig count and demand for oil services declined, however, in the Permian and Eagle Ford shale basins.

The Dallas bank said Monday factory index in the state declined in April. Texas is the No. 2 producer of manufactured goods in the nation behind California and state data show the sector is in contraction for the second consecutive month.

"Perceptions of broader economic conditions remained quite pessimistic for a fourth month in a row," the bank said.