Texas Oil Is Booming

Monday, April 03, 2017

Texas likes to do things big, and our oil industry is no exception. Like other oil-producing states, Texas was impacted when the downturn hit the oil and gas industry. Now, as we head into 2017, the oil market is booming once again.

One common measurement of industry confidence in an oil-producing region is the rig count, and if the numbers this year are any indication, the oil and gas industry is very confident in Texas. UPI reports that there were 392 active rigs in Texas as of March 10, citing figures from the Railroad Commission of Texas. This number is particularly noteworthy as it represents more than half of all active rigs in the entire country.

There are also other signs of a rebound in Texas oil, however. For instance, in February, there was twice the number of oil and gas discoveries as were recorded in January. In January, there was one natural gas and one oil discovery recorded, while in February there were two of each recorded. There has been a dramatic increase in original drilling permits being issued, as well, with the state commission reporting 991 permits issues in February versus 573 in the year prior.

Clearly oil and gas exploration the Lone Star State has seen a dramatic uptick in recent months, which coincides with an increase in prices for gas and oil. Oil prices have remained fairly stabilized at or above $50 per barrel, up from a low of $26 per barrel one year ago, and the industry is again able to engage in more exploration and drilling.

Despite the positive signs in the Texas oil industry, there is still room to grow. Economists report that employment and production are still lagging when compared to the months before the industry slowdown, but as new permits and explorations get under way, there’s no doubt that jobs and output will rise in kind.

Lowrance Machine has been meeting the machining needs of companies in the Texas oil and gas industry and other vocations for more than 50 years. Our customers turn to us for our attention to service and detail, something we prize as a small shop. Our experience, services and equipment provide all the capabilities of a larger shop while our custom and quick service makes us a leading choice of companies throughout the state and the region. Find out what we can do for your operation by giving us a call today at 281-449-6524 to learn more.