MIDLAND, Texas (Big 2/Fox24) – Oil prices jumped up to the low 60’s this week as producers continue to recover from the winter storm that slammed the Lone Star State last week.
According to Stephen Robertson, Permian Basin Petroleum Association’s executive vice president, the energy industry had an increase in demand like never before. “Natural gas fired power generation increased 450 percent,” Robertson said.
Now that things have thawed out and rigs are drilling again, producers are looking forward to taking advantage of a fast recovery. “We’ll be ready to take advantage of prices ,” Robertson says.
Oil prices have jumped more than 15 percent since the start of February. West Texas Intermediate is selling for it’s highest price in over a year. Producers were chomping at the bit to take advantage, and Robertson says that producers even brought solutions to PBPA leaders during the week.
While many are ready to roll, others are struggling, and not just at the production level. Sources tell us that the Alon USA refinery in Big Spring will be offline for two to four weeks while they make repairs. We have reached out to Alon USA to confirm and have not heard back.
Overall Robertson says that producers are resilient, and that West Texas attitude will move the industry forward into the future. “It encourages you to want to come to work every day and do your best for them.”