ODESSA, Texas (Big 2/Fox 24) – The Texas economy is still recovering after oil prices dropped and thousands were left without work.
While many are still trying to project how long it’s going to take the texas economy to recover some are more optimistic than others.
According to the Houston Chronicle, more than 100,000 U.S. oil and gas service jobs have been lost during the current drop in oil prices.
“I think a lot of the job destruction is permanent job loss and that’s just part of the bust cycle that happens every time we go through one of these busts,” said local economist Mickey Cargile.
In April, a barrel of crude dipped below 0 dollars a barrel causing companies to make massive cuts in their workforce. The Perryman Group projects a 5.42% drop in business activity in 2020. They also project a 4.13% recovery in 2021.
Cargile said, “Those numbers are somewhat surprising that it is actually better than what I would have expected.”
Compared to national projections for the state these numbers can be seen as optimistic but Cargile said its too soon to tell; especially when it comes to an oil field economy.
“It’s going to take longer and that’s traditional whenever we have a bust. It takes longer to ramp up than it does to fall off,” he said.
However, with oil at $40 a barrel the oil field is seeing much-needed stability after a turbulent spring.
“Whenever we look at where we are today we are in a position where we had stopped getting worse. That doesn’t mean it’s getting better it’s just not as bad as it was a month ago,” said Cargile.