Dallas Fed: Worst of Oil Bust Over

Houston, the world’s energy hub, may have seen the worst of the oil glut, according to a Sept. 26 report by the Federal Reserve Bank of Dallas.

While the report stated Houston wasn’t yet recovering from the downturn, the worst of the oil bust and its effects are in the rearview.

With oil priced between $40 and $50 the entire summer, it helped the rig count climb from 35 to 467. The count is expected to increase again this month, mainly because of increased activity in the Permian Basin.

Layoffs in the oil and gas sector have continued – the US shed 800 jobs in oil and gas extraction in August – but, with fewer people being laid off, it’s believed that the industry has already seen the bottom.

“With drag from the mining sector likely abating in the second half of the year, the outlook for Houston is shifting from modestly negative to generally flat,” the report states.

Industry experts have echoed these sentiments for months now. Texas oil economist Karr Ingham told Rigzone in June that he anticipated layoffs stabilizing in August. In July, Ingham also warned against a slow industry recovery.  

Valerie is an experienced writer and editor dedicated to providing useful and relevant career news about the oil and gas industry. Email Valerie at valerie.jones@rigzone.com


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.


Our Privacy Pledge

More from this Author
Valerie Jones
Editor, Careers | Rigzone
 -  Houston's Oil Industry Eyes Recovery, ... (Oct 21)
 -  Report: Majority of Women Not 'On Trac... (Oct 14)
 -  Advice for Working Millennials, from W... (Oct 13)
 -  BLOG: Survey Finds Stark Differences i... (Oct 7)
 -  US Jobs Report: Mining Employment Rema... (Oct 7)

Most Popular Articles

From the Career Center
Jobs that may interest you
HR Advisor
Expertise: Cementing|HR - General
Location: Mt Braddock, PA
HR Advisor
Expertise: HR - General|Well Control
Location: Punxsutawney, PA
Executive Assistant
Expertise: Executive|Secretarial or Administrative
Location: United States
search for more jobs

Brent Crude Oil : $51.78/BBL 0.77%
Light Crude Oil : $50.85/BBL 0.83%
Natural Gas : $2.99/MMBtu 4.77%
Updated in last 24 hours