HOUSTON – Drilling activity in Texas continued declining steadily through April, reflecting weak natural gas markets and defying a crude oil price rally. Employment in the state’s exploration and production (E&P;) industry has dropped to its lowest ebb since January 2008, according to the latest Texas Petro Index (TPI).
“The Texas oil and gas industry remains in cost-cutting mode, idling rigs, reducing capital spending, and laying off employees as economic contraction continues,” said Karr Ingham, the economist who created the TPI for the Texas Alliance of Energy Producers. “The oil-price recovery that has occurred since the first of the year is benefitting producers in some regions of the state.
“But make no mistake about it. Texas is a natural gas state, in terms of the primary E&P; focus, with 80 percent of the rigs still actively drilling for natural gas. As long as natural gas prices remain at current levels, producers in a lot of Texas gas plays will be unable to turn a profit on new gas wells.
“If wellhead prices would double from the current range of $3 to $4 per thousand cubic feet ($/Mcf), gas producers across Texaswould be able to recover their finding and development costs.
“Sustained gas prices of $6/Mcf or more would drive a turnaround of gas-related E&P; activity in the state.”
A composite index based upon a comprehensive group of upstream economic indicators, the Texas Petro Index in April dropped more than 5 percent to 249.0, marking the sixth consecutive monthly decline since the indicator of the Texas oil and gas industry’s health peaked in September and October 2008 at 285.4. Among leading March indicators:
· Natural gas prices in Texas during April averaged $3.28/Mcf, 63.4 percent less than the same month of 2008. As a result of low prices, the value of Texas gas production during April was $1.9 billion, down from $5.5 billion in April 2008, despite a volumetric decline of only 2.6 percent.
· The Baker Hughes count of active drilling rigs in Texas dipped to monthly average of 393 in April, nearly 500 fewer rigs than the April 2008 monthly average.
· The number of Texans employed in the state’s oil and gas industry declined to 219,500 during April, according to the Texas Workforce Commission, from 240,000 in December last year, effectively wiping out job growth last year since 219,500 Texans were working in the industry in January 2008
Business
Weak natural gas markets lead sustained decline of Texas oil and gas economy, despite crude price rally
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Tackett Pharmacy leads industry in compounding
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Vertical real estate to provide faster wireless service
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Making a comeback
- Medical Society reinstated in Parker County
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Marketing via mobile phones
Ding.
The all-too familiar sound of a phone receiving a text message has become a commodity in today's society. Individuals of all ages, from children to senior citizens, are capable of achieving anything from surfing the Internet to posting a Facebook status update just through the use of a mobile phone.
Even advertisers are wising up to the trend in today's market and creating mobile campaigns to reach their customers via text messages. The movement is so vast and over-utilized that an organization was created for individuals specializing in mobile marketing. -
Like us for the latest deals
Looking for daily deals around town? Well, thanks to Britton Schweitzer, Weatherford residents don't have too look far.
Schweitzer, owner of Weatherford Downtown Cafe, recently created a Facebook page that business owners and customers alike can put to use.
The page, titled Weatherford Texas Business Deals!, allows members of any local business to post daily, weekly and monthly specials with no charge. And customers only need to see the deal to take advantage of them. -
Business women’s group to hold awards luncheon
Texas Business Women of Parker County will host its annual awards and scholarship dinner at 6 p.m. Thursday, May 19, at the Doss Student Center, Weatherford College, 225 College Park.
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Lone Star Ag Credit announces new chief credit officer
Lone Star, ACA (Lone Star Ag Credit), the premier agricultural lender in North Texas, would like to announce the new appointment of Troy Bussmeir as chief credit officer for the association.
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The Bank of Weatherford announces ownership change back to Knights
J. Mark Riebe, chairman of the board, announced The Bank of Weatherford has entered into an agreement whereby Texas Banc Financial Corp, a bank holding company led by the Bill Knight family, will acquire 100 percent of the outstanding common stock of The Bank of Weatherford.
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