2018 Year-End Oil Price Declines Won't Stop Texas Oil Industry Growth
After 23 consecutive months of growth, the Texas Petro Index (TPI) declined in November and December, Texas oil economist Karr Ingham told news reporters Jan. 23.
The decline comes in response to the sharp drop in crude oil prices at the end of 2018 which he said “spooked producers.”
Still, he maintains that the recent declines in the TPI doesn’t necessarily mean an end to the current cycle of growth and expansion for Texas’ upstream oil and gas economy.
“It has virtually always been the case that a decline in the TPI signaled the onset of a contraction of some magnitude, but that may not be the case this time,” said Ingham. “A series of geopolitical market events may have been the primary culprit in that particular price event, and the market seems to be working through those in early 2019.”
Ingham said numbers from the Texas Workforce Commission reveal that oil and gas employment declined by about 500 jobs.
However, he says that’s more of a coincidence rather than a direct result of falling oil prices.
“Employment never responds to oil price declines that quickly. It was coincidental,” he said.
Ingham goes on to highlight the record production numbers in Texas and the United States in 2018.
“Texas really flexed its muscle in 2018,” he said.
The state’s crude oil production made up 40 percent of total U.S. crude production in 2018. Texas is on track to provide 45 percent of U.S. production by year-end 2019.
WHAT DO YOU THINK?
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.
- ExxonMobil Racks Up Discoveries in Guyana Block Eyed by Chevron
- Oil Market Sentiment Has Improved Significantly
- EU, US Eye Collaboration on Nuclear Materials
- USA Driving Activity to Increase to All-Time Highs
- TC Energy to Sell Prince Rupert Gas Pipeline Project to First Nation
- EU Electricity Export to Ukraine Up 94 Percent in Two Years
- China Coal Output Falls for First Time since Government Ordered More
- BP Pulse Buys One of Europe's Largest Truck Stops
- UK CCUS Plans Outdated: Think Tank
- North America Enters Rig Loss Streak
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- Rystad Looks at the Buzz Around White Hydrogen
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension