Is a New Texas Oil Boom on the Horizon? Experts Say “YES…IF”
Nestled here in the piney woods of East Texas, Russia and Ukraine seem very far away. Yet, we're definitely feeling the effects here at home.
But, we're definitely feeling the "pain at the pump," in Tyler, Longview, Kilgore, and all throughout East Texas.
Most of us are painfully aware of how oil prices have skyrocketed ever since Putin and his Russian army decided to invade Ukraine--more than $100 a barrel, according to a recent article shared in Texas Monthly. This has caused some to wonder why it is that we're not seeing more drilling?
In the aforementioned article, early answers to this question included the fact "that the oil business has become beholden to a new group of investors who have no interest in strapping in for a roller-coaster ride. They ponied up their money for a nice calm turn on the kiddie train."
OK, so maybe that is still relevant. However, the fossil fuel uptick may be with us for a while which could mean we could see more oil rigs doing what they do. Well, that is IF companies are able to find the workers (and the equipment) that make that possible. Part of the ongoing "Great Resignation?"
Who is the primary "expert" cited by Texas Monthly regarding this pending new Texas oil boom?
Well, let's just say he knows what he's talking about. Olivier Le Peuch is Schlumberger's CEO. If you're not familiar, this company is the biggest oil-field service company around. And Texas Monthly describes him and the cred his company has this way:
"When anyone from Chevron to a one-rig family company wants to work on a well, they call Schlumberger, giving the Houston company a wide-angle view of energy trends."
Le Peuch said the Russian invasion did serve as a catalyst in creating more interest in making sure there is a "secure and diverse supply of oil and gas." So, naturally, it would follow that we will be seeing more areas of production, as well as an optimization of output in areas already in use. That means a boom, y'all. And for a longer period of time and higher-than-anticipated levels.
So what is holding back this seemingly inevitable boom in Texas?
Writer Russell Gold says:
"Oil companies face severe challenges, including finding qualified workers. The industry has been shedding workers over the past decade due to low prices and increased automation. Many Texans with the requisite skills found work that was more reliable and less taxing on their bodies."
In addition to this, finding the parts and equipment has been a challenge, too. We can also blame that on supply-chain issues. And even though experts feel quite confident that the new Texas Oil Boom is, in fact, coming, we can all admit that so much feels uncertain right now.
However, Texas Monthly sums it up nicely. Despite these issues that are slowing down the process, the president of Rapidan Energy Group, Bob McNally told writer Russell Gold that:
“There is no question in my mind we are entering a multiyear boom. Boom will follow bust like night follows day. It is only a matter of when.”
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