The oil and gas industry in Texas has been struggling since the drop in crude oil prices in early 2015. It's a dramatic turnaround for what had been boom times in the Lone Star State. As worrisome as it is, analysts and Texas oil industry veterans say that it is really nothing new; it's just the latest turn in has historically been a cycle of boom and bust.
This roller coaster ride has been going on for most of the last century: a period of high prices and great profits, followed by low prices and jobs and fortunes lost. Industry veterans say that it's never fun, but it's the way it is and always has been. And they say that anyone in the business who thinks that the boom times are going to last, hasn't been around long enough to appreciate the cyclical nature of the oil and gas industry.
Geologists with experience in the Texas oil industry say that the dramatic fall in oil prices was inevitable. Some say that there is a long history of technological advancements that lead to supply gluts and the associated price crashes. And those who have signed up for the oil business because they know they'll be getting high paychecks have to be aware that they can't put all their eggs into one basket.
Charles Perrin is the owner of Rockford Energy Partners, LLC, an oil and natural gas company based in Tulsa, Oklahoma. Oklahoma, too, has a long and rich history in the oil industry. It is one of the top natural gas-producing states in the U.S., with five operating petroleum refineries. Rockford Energy Partners is focused on long-life gas reserves in the mid-Continent, including Oklahoma and the Texas panhandle.
Sources:
http://money.cnn.com/2015/01/15/investing/oil-prices-texas-jobs/
http://www.eia.gov/state/?sid=OK
This roller coaster ride has been going on for most of the last century: a period of high prices and great profits, followed by low prices and jobs and fortunes lost. Industry veterans say that it's never fun, but it's the way it is and always has been. And they say that anyone in the business who thinks that the boom times are going to last, hasn't been around long enough to appreciate the cyclical nature of the oil and gas industry.
Geologists with experience in the Texas oil industry say that the dramatic fall in oil prices was inevitable. Some say that there is a long history of technological advancements that lead to supply gluts and the associated price crashes. And those who have signed up for the oil business because they know they'll be getting high paychecks have to be aware that they can't put all their eggs into one basket.
Charles Perrin is the owner of Rockford Energy Partners, LLC, an oil and natural gas company based in Tulsa, Oklahoma. Oklahoma, too, has a long and rich history in the oil industry. It is one of the top natural gas-producing states in the U.S., with five operating petroleum refineries. Rockford Energy Partners is focused on long-life gas reserves in the mid-Continent, including Oklahoma and the Texas panhandle.
Sources:
http://money.cnn.com/2015/01/15/investing/oil-prices-texas-jobs/
http://www.eia.gov/state/?sid=OK