July 02–Business for Cuero-based Energy Waste grows every day because of the strong oil field industry, the co-owner said.
The oil field rental company has hired 10 employees in the past three months for its yard in Cuero and didn’t hire any during 2017, co-owner Ryan Howard said.
“We’ve seen a steady increase in our volume that we’re sending out,” he said. “It seems like it’s getting busier every month.”
Oil and gas production in the Eagle Ford Shale is growing along with the Permian Basin, which is growing at a faster pace, said Kunal Patel, Federal Reserve Bank of Dallas senior research analyst. Of the U.S. oil rigs, 55 percent, or 473 rigs, are in the Permian Basin, and 8 percent, or 73 rigs, are in the Eagle Ford Shale. The price of crude oil per barrel was $73 on Thursday.
“The industry itself, on the production side, has been expanding, and this expansion, the index for business activity, came at the highest level since the survey started in 2016,” he said. “2016 was a low point in terms of prices. Prices have increased, and production has also increased.”
The U.S. ended 2017 producing 10 million barrels of oil a day, Patel said. About 10.5 million barrels were being produced a day in March, and 10.9 million were being produced as of last week, Patel said.
“(Dallas Fed officials) believe production will exceed 11.2 million barrels per day by year-end 2018,” he said.
Howard said he thinks the industry will remain strong.
“Throughout 2018, we’re going to continue to see it get busier and busier if oil can stay in the $70 range,” he said.
Kathryn Cargo reports on business and agriculture for the Victoria Advocate. She may be reached at firstname.lastname@example.org or 361-580-6328. Follow her on twitter @kathryncargo.
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