The Texas Oil Bust Continues to Get Worse
If you know someone who works in the Oil and Gas industry in Texas, then you're probably familiar with the massive downward economic turn. The numbers are staggering, and it seems they are set to get worse, before they get better.
According to the Texas Alliance of Energy Producers, Texas has lost 84,000 oil and gas jobs in just 16 months. My San Antonio Blog reports that exploration and productivity are down, and that a workforce of only 222,000 is still employed. That number is down 27.5 percent from its peak in December 2014.
The last low that oil hit was in October 2009, when only 184,640 employees were working in upstream jobs. History shows that this downturn will likely continue for a few more months before turning around.
“Upstream industry employment in Texas will almost certainly continue to decline for most of the rest of the year; history suggests that employment will trough and begin to increase a good six months after prices reverse course,” Karr Ingham, the petroleum economist who authors the group’s Texas Petro Index said in a news release.
Although we've seen a rise in oil prices recently, it may not be the long-term increase needed to put this industry back to work full time.
“First, it may or may not be the real deal; prices increased in part on the hope that some agreement might be reached between producing countries elsewhere in the world on production limitations and that’s a prickly proposition,” Ingham said. “And second, price increase now produces a change in other oilfield indicators later, and indeed most other components of the index continued to decline in March.”
Take a look at how our energy resources are changing in the future.