Oil and Gas Businesses Look To Reinvest
Published Aug 07, 2009
Oil is still an attractive investment in The High Ground.
As oil and gas prices settled over the course of 2009, gradual improvement within the industry appears to be on the horizon.
“The industry is seeking its equilibrium,” says Taylor Mayne, president of the 700-member Permian Basin Petroleum Association in Midland. “Volatility of oil and gas prices affects our business significantly because you do not know what to plan for down the road. And that has left many companies on the sidelines. But I think we have seen the bottom and companies that are trying to grow will find growth easier when prices are stable.”
Following the 2008 record prices of oil, and the resulting millions of dollars in profit, a surge in drilling projects spread across Texas. But the cascading price of oil toward the end of 2008 caused many oil and gas investors to put the brakes on certain projects that were reliant on expensive drilling methods.
“Access to capital is a big concern among oil and gas producers throughout the country,” Mayne says.
However, as prices have slowly crawled back up in 2009, oil and gas are once again becoming a realistic – and attractive – investment. Mayne says that producers are becoming more confident about making predictions, building what he calls “an inventory of prospects.”
In accordance, Mayne expects to see a resurgence in the industry by the end of 2009, once again ensuring that petroleum and natural gas will continue as a mainstay of The High Ground economy.
“Within the industry there is a feeling that there is going to be a rebound in the coming years,” Mayne says. “We might not ever see growth like we saw in 2008, but most in the industry have a general outlook that things are going to firm up by the end of 2009 and into the future.”
Story by Brandon Lowe
Photo by Brian McCord
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