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.
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