The Federal Reserve Bank of Dallas has doubled its estimates for job losses this year through October in the oil and gas industry of Texas, the largest oil-producing state in the U.S., as companies rein in spending in the face of volatile oil prices.
In a report released on Dec. 17, the Federal Bank said it expects about 8,100 job losses in Texas' oil and gas sector, from an earlier estimate of 4,000 losses.
Employment in the U.S oil and gas sector fell for the first time in 14 months in November, according to data from the U.S. Bureau of Labor Statistics.
The report also shows home prices and sales have fallen in Texas' Permian Basin as more people in the state's oil and gas sector are likely to lose jobs.
Median home price in the basin was $301,045 in October, down 2.6% from August, when it peaked at $309,094, while monthly home sales edged lower to 372 units in October, dropping 3.6% from the previous month, the report said.
U.S. oil prices have hovered below $60 a barrel for the most part of the year, prompting many energy firms to cut staff and reduce budgets, even as major oil-exporting countries have curbed production.
Earlier this month, top fracking provider Halliburton Co. closed its Oklahoma office, impacting hundreds of workers, while Superior Energy Services Inc. followed suit and said Dec. 16 it will shut its hydraulic fracturing unit.
Last week, Basic Energy Services said it would sell most of its hydraulic fracturing equipment, citing weaker activity and pricing.
Recommended Reading
What’s Affecting Oil Prices This Week? (Aug. 8, 2022)
2022-08-08 - Stratas Advisors expects oil prices will rebound from the current level and, for the most part, remain throughout the third quarter within the channel between $100 and $120. Here’s why.
US Power Use to Rise in 2022 as Economy Keeps Growing: EIA
2022-06-08 - The EIA said natural gas’ share of power generation will hold at 37% in 2022, the same as 2021, then slide to 36% in 2023. Coal’s share will drop from 23% in 2021 to 21% in 2022 and 20% in 2023 as renewable output rises.
OPEC+ Set to Stick to Modest Oil Output Hike for July: Sources
2022-05-26 - Record production cuts by OPEC+ are set to be fully unwound by the end of September but the group’s oil output has been falling sharply in reality as sanctions and buyer reluctance hit Russian output, and Nigeria and Angola pump well below target.
US Natgas Plunges 17% on Long Texas Freeport LNG Outage
2022-06-15 - “Freeport’s outages will place a ceiling on demand, providing additional power behind expected storage injections in the near term,” analysts at Gelber & Associates said.
OPEC Keeps Forecast for 2022 Oil Demand to Exceed Pre-pandemic Levels
2022-06-15 - At its last meeting on June 2, OPEC+ brought forward oil production rises to offset Russian losses and smooth the way for a visit to Saudi Arabia by U.S. President Joe Biden.