Texas is enjoying a resurgence in the state’s oil industry.
After bottoming out at less than $30 a barrel in January 2016, crude prices closed April at almost $69. Industry experts expect the trend to continue
“We’re expecting the oil price to continue to stay for the rest of the year, and that is good for oil drilling and oil production,” said Texas A&M Corpus Christi Economics Professor Dr. Jim Lee.
Prices are up and so is production.
“The key is it’s a steady increase,” said Lee.
In January 2016, Texas oil fields produced about 1.2 million barrels of crude. Compare that to close more than 4.4 million barrels produced last month.
According to Lee, the oil rebound started more than a year ago.
“Starting at the beginning of last year, 2017, we started to pick up,” said Lee. “That’s the reason you’re seeing more activity, more hiring, and more businesses being developed.”
Dr. Lee says more than 40% Corpus Christi jobs are directly or indirectly related to the oil industry, second only to midland in the state. And with Texas producing about 40% American oil, a rebounding industry is good for the entire state.
“Oil prices are seen as being stable now, this is a new normal, and that is good because there was a lot of uncertainty a couple years ago,” said Lee.