Oil and gas expansion reports drastic decrease during start of 2023
AMARILLO, Texas (KFDA) - Across Texas and in the Panhandle oil and gas expansion has seen a significant decrease in the first quarter of 2023.
This comes after a nearly two year stretch of consistent growth of the industry.
According to Federal Reserve Bank of Dallas, the business activity index dropped from a 30.3 in the fourth quarter of 2022 to a 2.1 in the first quarter of 2023.
Experts say that there are quite a few factors that go into a significant expansion drop such as the one we’re seeing now.
“Right now drilling companies and anybody even in the oil and gas industry or trucking are having a very hard time getting people back to work,” says Panhandle Producers & Royalty Owners Assn. President, Judy Stark.
Stark says a decline of workers and rising costs are not the only factors that are affecting the drop. One other important factor that plays a role in this is lack of infrastructure that is available, such as pipelines.
“You may be able to get a drilling permit, but a drilling permit isn’t gonna do any good if the pipeline isn’t there, you can’t get permits to get the transportation lines,” says stark.
Stark says in past year when expansion has dropped, the most she has seen the price of gasoline at the pump go up was $1.50.
Although there was a significant decrease, Stark says the price of gasoline in our area shouldn’t fluctuate to much.
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