The executives from the Dallas Fed mainly touched on how oil gas activity, contracts and employment has declined. But that may not mean production has decreased.
Oil production index was at 15.7 in the third quarter, accoridng to executives, and natural gas production went to 6.5 from 13.4 – suggesting a slower pace of growth, not a decline.
While about 50 percent of executives think the permian basin d-u-c count is lower than the energy information administration estimate … company outlooks remain unchanged overall at negative 14.8.
Employment did decline but wages didn’t .. but rather the growth was just slowed.
Local financial analyst Mickey Cargile offered his opinion into why that is.
Most of that is that it’s harder to get overtime hours now. It’s not that wages have declined, its just harder to get overtimes hours as it was before. The truth is we just have more oil than we need right now. most of that is fueled by the activity we’ve had in the permian. so prices might be lower than where drillers would like them to be. Anytime you have an expansion period in the economy, you need to have some contraction to absorb the expansion had. We were at a low level, we went to a high level quickly, now we’re going down just a little bit. It’s not a crash, just simply a slow of the growth.