Oil & Gas Growth Expected in 2014 – Dallas Fed

Refineries & Petrochemical Plants Are Struggling to Find Engineers and Construction Workers
Federal Reserve Districts

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The Federal Reserve Bank of Dallas reported that oil & gas companies in the 11th district, which includes Texas, expect further growth in 2014.

Texas respondents indicated particularly strong activity levels in energy, which means the Eagle Ford Job market will remain robust.

The Fed also noted demand for oilfield services was steady even though the rig count had fallen in response to more wells being drilled per rig.

Read more: Energy Highlights from the Dallas Fed’s Beige Book

“The Eleventh District economy expanded at a moderate pace over the past six weeks. Manufacturing activity increased overall, with demand weakening in only a few industries.”

Other economic highlights from the region included:

  • Refining and petrochemical contacts reported extreme difficulty finding engineers and construction workers. They also noted rising wages
  • Manufacturers of construction related products reported slightly higher demand
  • Chemical production in the Gulf Coast region was up
  • Refinery utilization rates were down with the fall maintenance season
  • Winter fuel standards are pulling prices down at refineries, but margins remain healthy
  • Business relocations to Texas fueled demand for non-financial services
  • Railroad contacts said U.S. cargo volumes grew strongly during the reporting period and noted chemicals shipments were robust
  • “A contact noted Houston may be close to having too much office development in the works.”
  • Drought conditions continue to ease

The highlights came from the Dallas Beige Book, which summarizes recent economic conditions in the Eleventh District.

Read the full beige book at dallasfed.org

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R.T. Dukes

R.T. Dukes

Managing Editor at EagleFordShale.com
R.T. is the managing editor of EagleFordShale.com. In prior roles, he advised major oil companies on strategy, the macro business environment, and opportunity screening. 2503 Robinhood, Houston, TX, 77005, U.S.A. | Telephone: 832.429.4790

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