With some news outlets reporting a possible slowdown in oil production in Texas, it could be a sign that the energy industry is facing hard times. But Matt Smith, director of commodity research at ClipperData, says there’s several reasons why oil prices are rising and supplies are stacking up – and it’s not all bad news for the Texas economy.
For one thing, fewer oil rigs are online – not just in Texas but nationwide.
“You’re seeing the rig count continuing to drop here in the U.S.; it’s down now to the lowest since March 2017,” Smith says. “So a combination of factors – as well as the weak economic backdrop – is really raising concerns in the oil patch, it would seem.”
But there’s also an increase in energy production from other sources like liquefied natural gas (LNG) and wind. Smith says Texas is “pivoting” toward these sources, and will continue to do so over the next decade.
What you’ll hear in this segment:
– How Texas leads the nation in energy production from wind
– How the United States is exporting more LNG than ever
– Why lower oil prices could persist
Written by Savana Dunning and Caroline Covington.