Out in the West Texas Permian Basin, oil and gas companies are pumping a steady amount of fossil fuels from underground. But these days, they’re doing all that with fewer resources. Experts say the industry has ended its “hiring spree” that brought many high-paying jobs to the region, and that could be a sign of trouble ahead.
Jesse Thompson, a senior business economist at the Houston branch of the Federal Reserve Bank of Dallas, says energy companies are hiring fewer workers and reducing the number of rigs in operation as a way to stay profitable.
“We’re seeing some firms trying to right size and still trying to find ways to either reduce activity or reduce sending, in general, in order to generate better returns,” Thompson says.
What you’ll hear in this segment:
– How fewer oil patch jobs is a boon and a problem for cities in the Permian Basin
– What the ripple effect could be on other businesses in West Texas
– How energy companies are still producing a lot of oil despite layoffs
Written by Savana Dunning.