From budget cuts to oil spills, here is the news from the Texas oil and gas industry this week.
Oil spill photos are finally visible to the public
Photos taken by the Civil Air Patrol of flood-related oil spills are now available to the public online, rather than requiring a login and password for the University of Texas website. The photos were originally restricted due to privacy concerns, but a public information request by a newspaper has changed the policy for photos dating since 2014, as reported by CBSDFW.
Trading prices for crude increase, but Texas oil and gas employment is still weak
When oil prices dropped oil and gas producers were quick to lay off employees, but now that prices are slowly on the rise, employment is not rising with prices in the industry. In fact, according to an article in NGI’s Shale Daily, unemployment continues to rise in the industry. The number of active rigs in Texas for May averaged 182, as compared to last year in the same month when an average of 375 rigs were actively drilling in the state. The economic struggles associated with low oil prices have led to some industry leaders calling for a restriction on foreign energy imports.
Oil producers encourage grassroots movement to restrict imports.
The Albuquerque Journal reports an attempt by major oil producers, especially in New Mexico and West Texas, to include all major U.S. crude suppliers to restrict overseas oil imports. Efforts will formally begin in September at the Southeastern New Mexico Energy Summit in Carlsbad followed by other public meetings in the Bakken and Eagle Ford shale plays.
The purpose of the movement is to save oil field workers jobs and drive up domestic oil prices as a reaction to OPEC’s (Organization of Petroleum Exporting Countries) massive production, which has driven down global prices. Currently 50 percent of US oil is supplied by the Mid-East, and that number is continuing to grow as domestic production slows.
Delaware Basin draws in deals from Permian
The Permian Basin has been a hotbed of activity in comparison to other shale plays across the U.S. But things might be changing. According to The Street, Canaccod Genuity Inc. analysts expect the Delaware basin to draw out deals for oil companies looking to buy oil assets. Some privately held companies may be willing to offer initial public offerings (IPO) for their stocks in the future as another strategy for funding.