- Texas oil workers are frustrated with a lack of drilling rigs
- Texas oil rigs are down to 107 rigs
- Last year’s Texas rig count was 456
- Oil prices will likely rise as rig counts decline
- As oil price rises, the rig count will gain momentum
Texas oil field workers just can’t seem to catch a break! According to the latest Baker-Hughes rig count, Texas oil rigs are down 312 rigs from this time last year. In the glory days of last summer, Texas operated 456 rigs, while today it’s a mere 107 rigs for a total decline of around 76 percent. Workers are frustrated with a lack of platforms to work on and will soon have to make a decision whether or not to find work outside of the oil industry.
Active Oil Rigs Continue Their Decline
In addition, rigs in the entire United States are down by 700 from a year ago moving from 958 down to 258 in the latest reported period. The news was a boon for oil investors as oil prices elevated well over 2.5 percent on the news.
Oil Price Dampens Oil Patch Investment
As a lack of investment in the oil patch continues to persist, oil prices should continue to rise as supply is taken out of the system. With oil still hovering around $40 dollars a barrel, most shale producers will not invest in new drilling operations until oil price reach at least $50 dollars a barrel. With enhanced unemployment running out at the end of July 2020, oil workers who can’t find a rig to work on will have to either move out of their preferred area or re-skill into a different career.
As oil prices climb and move beyond $50 dollars a barrel, drilling platforms will slowly begin to come back on-line, re-opening the pipeline for oil field workers to re-enter the oil business. It’s anyone’s guess when this is going to happen as oil prices remain highly dependent on OPEC production. If OPEC produces too much, oil prices will remain low. If they curb their production, prices will rise naturally based on the dynamics of supply and demand. In any case shale producers probably won’t pick up until the price of oil is well over $50. In the meantime, workers should try to get on a production or maintenance team, or move to a factory setting where their skills can be maintained until the oil industry picks back up.
If you’re looking for work in Texas, be sure to see our article on: Oilfield Jobs in Texas.
