Date ArticleType
5/9/2017 Member News
Oil and Gas Economy in Texas Enters Expansion Cycle According to TPI

Oil and gas economy in Texas enters expansion cycle according to TPI

Tom Hinde

Crude oil and natural gas drilling and development in Texas has entered a new cycle of expansion, according to the Texas Petro Index (TPI). The index posted its fourth straight monthly increase. The first quarter expansion was driven by higher crude oil and natural gas prices, drilling activity, drilling permits issues and the value of statewide oil and gas production.

"Employment is increasing, but it still lags behind last year after the loss of well over 100,000 upstream jobs," reported Karr Ingham, petroleum economist who authors the TPI. "An estimated 9,000 jobs have been added back since reaching the low point in September 2016. We still have a long way to go but 2017 is going to be a year of recovery and expansion in the Texas statewide oil and gas exploration and production economy," said Karr.

Statewide, working rig counts averaged 368, a 43.5 percent increase year-over-year. The Texas RRC issued 3,257 drilling permits, up 104.3 percent year-over-year. While producers experienced a production decrease in both oil and natural gas, crude oil and natural gas prices were up significantly year-over-year.

In markets today, oil closed at $46.54 per barrel up .11 cents or .24 percent.