MIDLAND, Tx. (KOSA) - A report from Bloomberg shows there’s much fewer shale jobs to go around than this time last year.
That report said the Permian Basin is slowing down because our rig count has taken a dive.
Bloomberg reports drilling activity fell rapidly with a 19 percent drop throughout this year.
As oil companies pump the brakes on new hires, Bloomberg reports employers have cut down job ads by two-thirds.
“With the price in the area that it is, it just didn’t justify the number of rigs we were working,” Cargile Investment Management Owner Mickey Cargile said. “So, rigs have fallen and companies have cut back on some of their drilling programs. That’s not to say they stopped, they just cut the number back.”
Fewer shale employees coming out to West Texas for work doesn’t just impact the oilfields.
It means hotels prices are also on their way down.
Not so good for their profits, but helpful for guests.
However, Cargile said it’ll take a much more serious dip to rock the housing market.
“Home prices are still high,” he said. “They’re very high for our area. There are more houses on the market now, which, again, is related to the slowdown in drilling activity.”
Of course, the big question is: what does this mean for the West Texas oil economy?
Should oil workers start sweating?
“Those are legitimate concerns because that’s the economy we’ve always had out here,” Cargile said. “With the new technology and investments by major oil economies in the area changes that. You know, as long as the price stays somewhat stable, we don’t have to worry about that kind of slowdown again.”
Cargile said he doesn’t think the drop in rig counts will continue to dive.
Instead, he thinks we’ll see marginal dips over the next few years.