Texas oil industry sees jobs decline

TEXAS – The Texas oil industry contracted in the third quarter of this year, which included a drop in jobs, the Federal Reserve Bank of Dallas reports.

“Nearly 25% of oil and gas companies reported job losses in the third quarter, a slight increase from 18% in the second quarter”, the Dallas Fed reported.

Most of the layoffs occurred in the oilfield services industry, several companies told surveyors their employment figures declined, with the number being a bit higher than in the previous quarter.

“Conditions in the oil and gas sector deteriorated in the third quarter, with overall activity and employment declining modestly”, pointed out Michael Plante, Dallas Fed senior research economist.

Oilfield service firms were most affected, with a sharp drop in equipment utilization and operating margins; in general, the survey results suggest the second half of 2019 is going to be a tough one for the industry.

Source: Texas Breaking News