On Bauer Business Focus — A conversation on Houston’s oil and gas industry with Andrew Schneider, business reporter for KUHF 88.7 FM.
The Texas oil and gas industry has remained strong over the years, but with Texas’ crude oil production hitting its highest level in 30 years and gas prices on the rise, there are still many questions left unanswered.
Karr Ingham, petroleum economist for the Texas Alliance of Energy Producers, stopped by Bauer Business Focus recently to discuss how Houston’s oil and gas industry may see some changes in 2014.
“Employment levels for the exploration and production end remain very close to record levels. It may just be that we’re seeing a plateau in productivity in Texas. The number of rigs in 2013 was lower than in 2012, so there may be some expectations that prices may moderate and employment, although high, may be plateauing as we speak.”
But when will those prices drop?
“It may be that prices would be higher absent these fairly spectacular additions to supply,” Ingham said. “We have a somewhat improving economy domestically, the U.S. and the global economy, and any economic improvement is bullish in crude oil prices so again, it may be that prices would be higher, absent production, but I think we will likely see some mitigation in crude oil prices, perhaps in 2014.”
Click here to hear the full interview.